EFFECT OF ELECTRONIC PAYMENT SYSTEM ON BANK’S PERFORMANCE IN NIGERIA

Abstract

This study examined the effect of Electronic Payment System on the Bank’s performance in Nigeria from 2012-2018. The study used the Banking Index from the Nigerian Stock Exchange as the measure of the performance of banks. The study used ex-post -facto research design, while the data for the payment platform was sourced from the Central Bank of Nigeria annual reports. The payment platforms used are Point of Sale (POS), Automatic Payment System (ATM), Nigerian Interbank Electronic Fund Transfer (NEFT) and Nigerian Interbank Instant Payment (NIP). Regression analysis was used to analyze the data. The analysis was carried out using the Statistical Package for Social Sciences (SPSS). The empirical result revealed that there is no significant relationship between the banking index and Point of Sale transactions with a p-value 0.705. The study also revealed there is no significant relationship between Automatic Payment Machine (ATM), NEFT and NIP. The p-value of these is 0.681, 0.866 and 0.763 respectively. The study recommended that dealings charged out to be reviewed to a little or no charge at all to encourage more patronage of e-payment platforms while CBN, Deposit money banks (DMB) ought to give public enlightenment and awareness programs which will encourage the unbanked people into the banking industry particularly those within the informal sector in Nigeria.