Electronic Payment Systems (E-payments) and Nigeria Economic Growth

John Sylvester Afaha

doi:doi:10.11648/j.ebm.20190506.11

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Electronic Payment Systems (E-payments) and Nigeria Economic Growth

John Sylvester Afaha

Published in European Business & Management (Volume 5, Issue 6)

Received: 14 October 2019 Accepted: 8 November 2019 Published: 19 November 2019

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Abstract

The electronic payment system is a platform that settles financial transactions between the buyer and seller. Payment systems are meant to ease the stress of both parties making an easy exchange or flow of money in a safe and secure environment. This study statistically estimated the relationship between electronic (e-payment) systems and economic growth in Nigeria. Monthly available Data for Nigeria on values of various payments systems were analyzed using Autoregressive Distributed Lagged regression (ARDL) method covering the period of (2012-2017). The result indicates a significant positive relationship between the electronic payment system and economic growth in terms of real gross domestic product (GDP) growth. Automated teller machines have a positive significant impact on economic growth, based on a probability of (0.06), but its contribution to the real GDP growth is negative (-5.0 percent). This means the ATM based transaction encourages more cash, possessions and may not yield the required goal of low cash based transactions within Nigeria’s banking populace. POS contributes 17 percent growth to the real GDP growth in Nigeria, web based transactions (WBT), contributes 2.3 percent to the real GDP growth, but INTERBANK transactions, has an insignificant impact on GDP growth while MOP has a negative contribution to the impact on real GDP growth. Point of Sales (POS) transactions is also the most patronized electronic banking tool and this is seen from the descriptive analysis, followed by web base transactions (WBT). POS and WBT have the highest average amongst all other variables. This implies that POS and WBT are significantly part of the major determining factors influencing and contributing to the real GDP growth output in Nigeria, while other variables such as INTERBANK transactions are although relevant but contributes minimally and drive real GDP output negatively down, as reflected in the results. Since the successful implementation of the e-payment systems which has much to do with internet connectivity and mobile banking, efforts should be made to design or improve on the internet security framework to check online fraud. There should be adequate legislation on all aspects of the operations of the e-banking and cashless system so that both the operators of the system and the public can be adequately protected.

Published in	European Business & Management (Volume 5, Issue 6)
DOI	10.11648/j.ebm.20190506.11
Page(s)	68-78
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Electronic Payment System, Interbank, Economic Growth, Point of Sales

References

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[3]	Acha, I. A. (2008a). Electronic banking in Nigeria: Concepts, challenges and prospects. International Journal of Development and Management Review, 3 (1): 88–97.
[4]	Akhalumeh, P. B., & Ohiokha, F. (2012). Nigeria’s cashless economy: the imperatives. International Journal of Management and Business Studies, 2 (2), 31-36.
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[7]	Central Bank of Nigeria (2015). Payments system transformation: Cash -less Nigeria implementation: 2013.
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[17]	Obi, V. (2011). Imperatives of advancing cashless Nigeria. Posted online on june 13, 2011 accessed October, 2019.
[18]	Omojolaibi, J. A., Mesagan, E. P., & Oladipupo, T. D. (2016). The dynamics of electricity consumption and private investment in Nigeria. Economic Issues Journal Articles, 21 (2), 33-51.
[19]	Punch (2012). Cash-less: Banks begin roadshow in Lagos http://www.punchng.com/…/cash-less-banks-begin-roadshow-in…/.
[20]	Paschal Okafo (2019). InterSwitch Verve PIN Chip Card ATM Secure e-payment. https://www.naijatechguide.com/2009/04/interswitch-verve-pin-chip-card-atm.html.
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John Sylvester Afaha. (2019). Electronic Payment Systems (E-payments) and Nigeria Economic Growth. European Business & Management, 5(6), 68-78. https://doi.org/10.11648/j.ebm.20190506.11

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John Sylvester Afaha. Electronic Payment Systems (E-payments) and Nigeria Economic Growth. Eur. Bus. Manag. 2019, 5(6), 68-78. doi: 10.11648/j.ebm.20190506.11

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John Sylvester Afaha. Electronic Payment Systems (E-payments) and Nigeria Economic Growth. Eur Bus Manag. 2019;5(6):68-78. doi: 10.11648/j.ebm.20190506.11

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@article{10.11648/j.ebm.20190506.11,
  author = {John Sylvester Afaha},
  title = {Electronic Payment Systems (E-payments) and Nigeria Economic Growth},
  journal = {European Business & Management},
  volume = {5},
  number = {6},
  pages = {68-78},
  doi = {10.11648/j.ebm.20190506.11},
  url = {https://doi.org/10.11648/j.ebm.20190506.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20190506.11},
  abstract = {The electronic payment system is a platform that settles financial transactions between the buyer and seller. Payment systems are meant to ease the stress of both parties making an easy exchange or flow of money in a safe and secure environment. This study statistically estimated the relationship between electronic (e-payment) systems and economic growth in Nigeria. Monthly available Data for Nigeria on values of various payments systems were analyzed using Autoregressive Distributed Lagged regression (ARDL) method covering the period of (2012-2017). The result indicates a significant positive relationship between the electronic payment system and economic growth in terms of real gross domestic product (GDP) growth. Automated teller machines have a positive significant impact on economic growth, based on a probability of (0.06), but its contribution to the real GDP growth is negative (-5.0 percent). This means the ATM based transaction encourages more cash, possessions and may not yield the required goal of low cash based transactions within Nigeria’s banking populace. POS contributes 17 percent growth to the real GDP growth in Nigeria, web based transactions (WBT), contributes 2.3 percent to the real GDP growth, but INTERBANK transactions, has an insignificant impact on GDP growth while MOP has a negative contribution to the impact on real GDP growth. Point of Sales (POS) transactions is also the most patronized electronic banking tool and this is seen from the descriptive analysis, followed by web base transactions (WBT). POS and WBT have the highest average amongst all other variables. This implies that POS and WBT are significantly part of the major determining factors influencing and contributing to the real GDP growth output in Nigeria, while other variables such as INTERBANK transactions are although relevant but contributes minimally and drive real GDP output negatively down, as reflected in the results. Since the successful implementation of the e-payment systems which has much to do with internet connectivity and mobile banking, efforts should be made to design or improve on the internet security framework to check online fraud. There should be adequate legislation on all aspects of the operations of the e-banking and cashless system so that both the operators of the system and the public can be adequately protected.},
 year = {2019}
}

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TY  - JOUR
T1  - Electronic Payment Systems (E-payments) and Nigeria Economic Growth
AU  - John Sylvester Afaha
Y1  - 2019/11/19
PY  - 2019
N1  - https://doi.org/10.11648/j.ebm.20190506.11
DO  - 10.11648/j.ebm.20190506.11
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 68
EP  - 78
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20190506.11
AB  - The electronic payment system is a platform that settles financial transactions between the buyer and seller. Payment systems are meant to ease the stress of both parties making an easy exchange or flow of money in a safe and secure environment. This study statistically estimated the relationship between electronic (e-payment) systems and economic growth in Nigeria. Monthly available Data for Nigeria on values of various payments systems were analyzed using Autoregressive Distributed Lagged regression (ARDL) method covering the period of (2012-2017). The result indicates a significant positive relationship between the electronic payment system and economic growth in terms of real gross domestic product (GDP) growth. Automated teller machines have a positive significant impact on economic growth, based on a probability of (0.06), but its contribution to the real GDP growth is negative (-5.0 percent). This means the ATM based transaction encourages more cash, possessions and may not yield the required goal of low cash based transactions within Nigeria’s banking populace. POS contributes 17 percent growth to the real GDP growth in Nigeria, web based transactions (WBT), contributes 2.3 percent to the real GDP growth, but INTERBANK transactions, has an insignificant impact on GDP growth while MOP has a negative contribution to the impact on real GDP growth. Point of Sales (POS) transactions is also the most patronized electronic banking tool and this is seen from the descriptive analysis, followed by web base transactions (WBT). POS and WBT have the highest average amongst all other variables. This implies that POS and WBT are significantly part of the major determining factors influencing and contributing to the real GDP growth output in Nigeria, while other variables such as INTERBANK transactions are although relevant but contributes minimally and drive real GDP output negatively down, as reflected in the results. Since the successful implementation of the e-payment systems which has much to do with internet connectivity and mobile banking, efforts should be made to design or improve on the internet security framework to check online fraud. There should be adequate legislation on all aspects of the operations of the e-banking and cashless system so that both the operators of the system and the public can be adequately protected.
VL  - 5
IS  - 6
ER  -

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Author Information

John Sylvester Afaha

Department of Economics, Caleb University, Imota Lagos State, Nigeria

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John Sylvester Afaha. (2019). Electronic Payment Systems (E-payments) and Nigeria Economic Growth. European Business & Management, 5(6), 68-78. https://doi.org/10.11648/j.ebm.20190506.11

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ACS Style

John Sylvester Afaha. Electronic Payment Systems (E-payments) and Nigeria Economic Growth. Eur. Bus. Manag. 2019, 5(6), 68-78. doi: 10.11648/j.ebm.20190506.11

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AMA Style

John Sylvester Afaha. Electronic Payment Systems (E-payments) and Nigeria Economic Growth. Eur Bus Manag. 2019;5(6):68-78. doi: 10.11648/j.ebm.20190506.11

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@article{10.11648/j.ebm.20190506.11,
  author = {John Sylvester Afaha},
  title = {Electronic Payment Systems (E-payments) and Nigeria Economic Growth},
  journal = {European Business & Management},
  volume = {5},
  number = {6},
  pages = {68-78},
  doi = {10.11648/j.ebm.20190506.11},
  url = {https://doi.org/10.11648/j.ebm.20190506.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20190506.11},
  abstract = {The electronic payment system is a platform that settles financial transactions between the buyer and seller. Payment systems are meant to ease the stress of both parties making an easy exchange or flow of money in a safe and secure environment. This study statistically estimated the relationship between electronic (e-payment) systems and economic growth in Nigeria. Monthly available Data for Nigeria on values of various payments systems were analyzed using Autoregressive Distributed Lagged regression (ARDL) method covering the period of (2012-2017). The result indicates a significant positive relationship between the electronic payment system and economic growth in terms of real gross domestic product (GDP) growth. Automated teller machines have a positive significant impact on economic growth, based on a probability of (0.06), but its contribution to the real GDP growth is negative (-5.0 percent). This means the ATM based transaction encourages more cash, possessions and may not yield the required goal of low cash based transactions within Nigeria’s banking populace. POS contributes 17 percent growth to the real GDP growth in Nigeria, web based transactions (WBT), contributes 2.3 percent to the real GDP growth, but INTERBANK transactions, has an insignificant impact on GDP growth while MOP has a negative contribution to the impact on real GDP growth. Point of Sales (POS) transactions is also the most patronized electronic banking tool and this is seen from the descriptive analysis, followed by web base transactions (WBT). POS and WBT have the highest average amongst all other variables. This implies that POS and WBT are significantly part of the major determining factors influencing and contributing to the real GDP growth output in Nigeria, while other variables such as INTERBANK transactions are although relevant but contributes minimally and drive real GDP output negatively down, as reflected in the results. Since the successful implementation of the e-payment systems which has much to do with internet connectivity and mobile banking, efforts should be made to design or improve on the internet security framework to check online fraud. There should be adequate legislation on all aspects of the operations of the e-banking and cashless system so that both the operators of the system and the public can be adequately protected.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Electronic Payment Systems (E-payments) and Nigeria Economic Growth
AU  - John Sylvester Afaha
Y1  - 2019/11/19
PY  - 2019
N1  - https://doi.org/10.11648/j.ebm.20190506.11
DO  - 10.11648/j.ebm.20190506.11
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 68
EP  - 78
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20190506.11
AB  - The electronic payment system is a platform that settles financial transactions between the buyer and seller. Payment systems are meant to ease the stress of both parties making an easy exchange or flow of money in a safe and secure environment. This study statistically estimated the relationship between electronic (e-payment) systems and economic growth in Nigeria. Monthly available Data for Nigeria on values of various payments systems were analyzed using Autoregressive Distributed Lagged regression (ARDL) method covering the period of (2012-2017). The result indicates a significant positive relationship between the electronic payment system and economic growth in terms of real gross domestic product (GDP) growth. Automated teller machines have a positive significant impact on economic growth, based on a probability of (0.06), but its contribution to the real GDP growth is negative (-5.0 percent). This means the ATM based transaction encourages more cash, possessions and may not yield the required goal of low cash based transactions within Nigeria’s banking populace. POS contributes 17 percent growth to the real GDP growth in Nigeria, web based transactions (WBT), contributes 2.3 percent to the real GDP growth, but INTERBANK transactions, has an insignificant impact on GDP growth while MOP has a negative contribution to the impact on real GDP growth. Point of Sales (POS) transactions is also the most patronized electronic banking tool and this is seen from the descriptive analysis, followed by web base transactions (WBT). POS and WBT have the highest average amongst all other variables. This implies that POS and WBT are significantly part of the major determining factors influencing and contributing to the real GDP growth output in Nigeria, while other variables such as INTERBANK transactions are although relevant but contributes minimally and drive real GDP output negatively down, as reflected in the results. Since the successful implementation of the e-payment systems which has much to do with internet connectivity and mobile banking, efforts should be made to design or improve on the internet security framework to check online fraud. There should be adequate legislation on all aspects of the operations of the e-banking and cashless system so that both the operators of the system and the public can be adequately protected.
VL  - 5
IS  - 6
ER  -

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