Electronic Payment System Channels and the Performance of Deposit Money Banks in Nigeria
Alwell Nteegah *
Department of Economics, University of Port Harcourt, Nigeria.
Isaac Oladosu
Department of Economics, University of Port Harcourt, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study examined the effect of electronic payment system channels on the performance of deposit money banks in Nigeria from 2010Q1 to 2020Q4. Electronic payment system channels were proxied by Automated Teller Machine, Point of Sale, mobile payment and web based payment while performance of deposit money banks was measured by deposit penetration. The study used quarterly data which were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin. Time series properties of the data were tested using the Augmented Dickey-Fuller (ADF) and Philip-Perron (PP) Test and due to the different order of integration the Autoregressive Distributed Lag (ARDL) technique was used. The result of the ARDL estimation showed that: Automated Teller Machine had a positive and significant effect on deposit penetration. Mobile payment also had a positive and significant effect on deposit penetration. The result further revealed that web based payment had a positive and significant effect on deposit penetration while point of sale had a positive but non-significant effect on deposit penetration. The study concluded that electronic payment system channels play a significant role in the performance of deposit money banks in Nigeria. Based on these findings, the study recommends: the use of more efficient Automated Teller Machines (ATMs) with twenty-four hours services should be deployed by deposit money banks in Nigeria so as to reduce customers’ waiting time at ATM points, increase accessibility to banking services and improve infrastructure in order to boost their performance.
Keywords: Artocarpus heterophyllus, Electronic payment system channels, callus,, deposit penetration, pigments., automated teller machine, point of sale, mobile payment
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References
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