Electronic Payment Systems (E-payments) and Nigeria Economic Growth
European Business & Management
Volume 5, Issue 6, November 2019, Pages: 77-87
Received: Oct. 14, 2019; Accepted: Nov. 8, 2019; Published: Nov. 19, 2019
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John Sylvester Afaha, Department of Economics, Caleb University, Imota Lagos State, Nigeria; Center for Petroleum Economics, Energy and Law (CPEEL) University of Ibadan, Oyo State, Nigeria
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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.
Electronic Payment System, Interbank, Economic Growth, Point of Sales
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John Sylvester Afaha, Electronic Payment Systems (E-payments) and Nigeria Economic Growth, European Business & Management. Vol. 5, No. 6, 2019, pp. 77-87. doi: 10.11648/j.ebm.20190506.11
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