The effects of e-payment system on the efficiency of banks in Nigeria


  • Chiejina Ofure Josephine Department of Accounting, Banking & Finance, Delta State University Abraka, Nigeria


automated teller machine, banks, efficiency, e-payment system, POS


This study examines the effect of the e-payment system on the efficiency of banks in Nigeria. The specific objective of the study is to examine the impact of e- payments systems on economic growth in Nigeria to determine the implication of mobile payment on the efficiency of Nigerian banks, to identify the significance of Automated Teller Machine on the efficiency of Nigeria banks, and to determine the effect of POS on the efficiency Nigerian banks, collating data of e-payment statistics from Central Bank of Nigeria from the year 2012 to 2016. A linear regression analysis was adopted for this study using SPSS to carry out the analysis, to obtain the P-Value significance which is given at a significance level of 0.05. The result of the analysis obtained a P-Value significance of 0.333 which connotes that there is no significant effect of the e-payment system on the efficiency of banking in Nigeria. The study recommended that banks and other financial institutions should intensity efforts in mounting other e-payment channels to promote trade and commerce in Nigeria and the Central Bank of Nigeria should embark on an intensive campaign for complete adoption of e- payments products especially at the grassroots.


Download data is not yet available.


Abdulmumin, S. M., (2020). The role of e-payment systems on economic growth in Nigeria. Department of economics faculty of management and social sciences Baze University, Abuja.

Abrazhevich, D. (2001). Electronic payment systems: issues of user acceptance. In In B. Stanford-Smith and E. Chiozza (Eds.), E-work and E-commerce.

Acha, I. A., Kanu, C., & Agu, G. A. (2017). Cashless policy in Nigeria: The mechanics, benefits and problems. Innovative Journal of Economics and Financial Studies, 1(1), 28-38.

Adeoti, O. O., & Oshotimehin, K. O. (2011). Factors influencing consumers adoption of point of sale terminals in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 2(5), 388-392.

Afsharpour, M., & Pahlevani, M. (2013). review and prioritization of payment tools and equipment of e-banking using Analytical Hierarchy Process (AHP). In Seventh National Conference and the First International Conference of ecommerce and economy, Tehran.

Agboola, A. A. (2003). Impact of electronic banking on customer services in Lagos, Nigeria. Journal of Social Sciences, 7(1), 27-36.

Agwu, M. E., & Carter, A. L. (2014). Mobile phone banking in Nigeria: benefits, problems and prospects. International Journal of Business and Commerce, 3(6), 50-70.

ALHOSANI, F. A., & TARIQ, M. U. (2020). Improving Service quality of smart banking using quality management methods in UAE. International Journal of Mechanical Production Engineering Research and Development (IJMPERD), 10(3), 2249-8001.

Atteh, O. (2012). Cashless policy: Implementation, challenges and the way forward. A Paper Delivered at the Bankers Dinner, Osogbo, 24.

Ayo, C. K., & Adewoye, J. O. (2010). The state of e-banking implementation in Nigeria: A post-consolidation review. Journal of emerging trends in economics and management sciences, 1(1), 37-45.

Bilginol, K., Denli, H. H., & ?eker, D. Z. (2015). Ordinary least squares regression method approach for site selection of automated teller machines (ATMs). Procedia Environmental Sciences, 26, 66-69.

Chan, C. C., Wong, A. W., Lee, T. M., & Chi, I. (2009). Modified automatic teller machine prototype for older adults: A case study of participative approach to inclusive design. Applied Ergonomics, 40(2), 151-160.

Chen, X., Li, J., Ma, J., Lou, W., & Wong, D. S. (2014). New and efficient conditional e-payment systems with transferability. Future Generation Computer Systems, 37, 252-258.

Fadoju, O. S., Evbuomwan, G., Olokoyo, F., Oyedele, O., Ogunwale, O., & Kolawole, O. O. (2018). Dataset for electronic payment performance in Nigerian banking system: A trend analysis from 2012 to 2017. Data in brief, 20, 85-89.

Fenuga, O. J., & Oladejo, R. K. (2010). The effect of electronic payment on customer service delivery in Nigerian banks. International journal of Economic development research and investment, 1(1), 227-239.

Ghasemi, S., & Radgohar, H. (2010). the necessity of using new electronic payment methods in Iran. In at the Third National Conference on Computer Engineering and Information Technology, Hamedan.

Hoseini, A., & Dangoliani, S. K. (2015). Investigating the effect of electronic banking services quality on the customer satisfaction. J. Intern. Econ. Bus, 1, 37-42.

Hossain, M., Irin, D., Islam, S., & Saha, S. (2013). Electronic-banking services: A study on selected commercial banks in Bangladesh. Asian Business Review, 3(3), 53-61.

Imafidon, A. (2013). Challenges of E-banking and payment systems in Nigeria. Journal of Chartered Institute of Bankers of Nigeria, 7(4), 76-84.

Kelvin, O. (2012). Mobile money for financial inclusion. Journal of Macro Finance, Africa, Nett, Lagos, 4, 14.

Kim, C., Tao, W., Shin, N., & Kim, K. S. (2010). An empirical study of customers’ perceptions of security and trust in e-payment systems. Electronic commerce research and applications, 9(1), 84-95.

Kondabagil, J. (2007). Risk management in electronic banking: Concepts and best practices (Vol. 454). John Wiley & Sons.

Kusuma, P. O., & Darma, G. S. (2020). Mobile payment transaction on MSMEs. International Research Journal of Management, IT and Social Sciences, 7(3), 104-109.

Mahmood, T., & Shaikh, G. M. (2013). Adaptive automated teller machines. Expert Systems with Applications, 40(4), 1152-1169.

Nimbalkar, A. A., & Deodhar, N. (2015). A Study of E-Services of Bank with Special Reference to Private Banks, Ahmednagar. International Research Journal of Management, IT and Social Sciences, 2(11), 16-21.

Okafor, L. (2008). Nigeria payments system: The role of the banking industry. In CBN Seminar on the Dynamics of Managing the Nigeria Payment System in the 21st Century.

Okechi, O., & Kepeghom, O. M. (2013). Empirical evaluation of customers’ use of electronic banking systems in Nigeria. African journal of computing & ICT, 6(1), 7-20.

Okifo, J., & Igbunu, R. (2015). Electronic Payment System in Nigeria: Its Economic Benefits and Challenges. Journal of Education and practice, 6(16), 56-62.

Olajide, O. T., Asaolu, T., & Jegede, C. A. (2011). The impact of financial sector reforms on banks performance in Nigeria. The international journal of business and finance research, 5(1), 53-63.

Oloruntoyin, S. T., & Olanloye, D. O. (2012). The role of information communication technology (ICT) on national development. International Journal of Economic and Development Issues, 1&2 (11).

Riskinanto, A., Kelana, B., & Hilmawan, D. R. (2017). The moderation effect of age on adopting e-payment technology. Procedia Computer Science, 124, 536-543.

Rofiat, A. (2017). The effect of cashless banking on the financial performance of small and medium scale enterprises. International Journal of Advanced Research in Public Policy, Social Development and Enterprise Studies, 2(2), 133-142.

Roozbahani, F. S., Hojjati, S. N., & Azad, R. (2015). The role of e-payment tools and e-banking in customer satisfaction case study: Pasargad bank e-payment company. International Journal of Advanced Networking and Applications, 7(2), 2640.

Salehi, M., & Alipour, M. (2010). E-banking in emerging economy: empirical evidence of Iran. International Journal of economics and finance, 2(1), 201-209.

Steven, A. (2002). Information systems: The information of e-business. New Jersey: Natalie Anderson, 11-36.

Taghizadeh, H. O. U. S. H. A. N. G., & Sepehri, E. (2013). The reasons of public reluctance to use of Electronic Bank cards (case study: Mellatbank customers).

Tan, M. (2004). E-payment: The digital exchange. NUS press.

Tella, A., & Abdulmumin, I. (2015). Predictors of users’ satisfaction with e-payment system: a case study of staff at the university of Ilorin, Nigeria. Organizacija, 48(4).

Tijani, J. (2013). Integrating the unbanked and under-banked Nigeria population into formal financial services through mobile money solution. Journal of Pristine, Zaria, 8(1), 158.

Tijani, J. A., & Ilugbemi, A. O. (2015). Electronic payment channels in the Nigeria banking sector and its impacts on national development. Asian Economic and Financial Review, 5(3), 521-531.

Tsai, W. H., Huang, B. Y., Liu, J. Y., Tsaur, T. S., & Lin, S. J. (2010). The application of Web ATMs in e-payment industry: A case study. Expert systems with Applications, 37(1), 587-597.

van der Heide, L. M., Coelho, L. C., Vis, I. F., & van Anholt, R. G. (2020). Replenishment and denomination mix of automated teller machines with dynamic forecast demands. Computers & Operations Research, 114, 104828.

Wonglimpiyarat, J. (2014). Competition and challenges of mobile banking: A systematic review of major bank models in the Thai banking industry. The Journal of High Technology Management Research, 25(2), 123-131.

Yusuf, I. (2016). Cash-less policy and economic growth: evidence from Nigeria. International Journal of Electronic Finance, 9(1), 63-71.

Zandi, M., Koropeckyj, S., Singh, V., & Matsiras, P. (2016). The Impact of Electronic Payments on Economic Growth, Moodys Analytics. February https://usa. visa. com/dam/VCOM/download/visa-everywhere/global-impact/impact-of-electronic-payments-on-economic-growth. pdf.



How to Cite

Josephine, C. O. (2021). The effects of e-payment system on the efficiency of banks in Nigeria. International Research Journal of Management, IT and Social Sciences, 8(6), 548-558.



Peer Review Articles