Cryptocurrency Integration and Competitive Advantage: A Study of Contextual Factors of Payment Strategy Innovations in Nigeria’s E-Commerce Sector

Abstract

This study examined how cryptocurrency integration shapes consumer trust, ease of use, and competitive advantage within Nigeria’s e-commerce sector. Grounded in the Technology Acceptance Model (TAM), Diffusion of Innovation theory, and the Resource-Based View (RBV), the research was motivated by the rising adoption of digital payments and the uncertainty surrounding whether crypto can genuinely strengthen competitiveness. A structured online questionnaire yielded 324 valid responses. Data were analysed using structural equation modelling in Amos. Findings revealed that cryptocurrency integration had a significant negative effect on consumer trust (-.148, p = .022) but a marginal positive effect on ease of use (.128, p = .070). No direct link was found between crypto integration and competitive advantage (-.015, p = .822). Importantly, consumer trust significantly mediated the link between crypto and competitive advantage (-.191, p = .012), whereas ease of use did not (.072, p = .270). These results highlight that trust, not technology alone, drives competitiveness in emerging markets. Recommendations include phased crypto rollouts, stronger security safeguards, and linking crypto use to customer rewards. The study expands knowledge by showing that perceived risks can outweigh usefulness, suggesting future research should explore cultural and regulatory factors shaping digital adoption within Nigeria’s e-commerce ecosystem.