E-payments Adoption and Customers Service delivery in Nigerian Deposits Money Banks

ABSTRACT The use of e-payment is expected to improve financial transaction in Nigeria and serve as a pointer to digital economy. This has thus become a subject of debate among the accountants and practitioners. This paper remains pertinent by exploring the influence of e-payments adoption on customer’s service delivery in Nigeria Deposits Money Banks (DMBs). Data were collected through a structured questionnaire administered on ten quoted DMBs and financial statements of the sampled banks to elicit information on adopted e-payments and combined effect on service delivery measured by customers’ deposits between 2005 and 2012. Data were analyzed using panel logistic regression regressing performance measured by customers deposits on the four identified e-payments by the central banks of Nigeria (ATM, INTERNET, POS and Mobile Banking). The overall result from data analysis shows that when bank adopt e-payment systems, their performance level measured by customer deposits changes. The result of the Regression analysis produced coefficient of determination (R2) 0.9678 supported by high value of Adjusted (R2) significant at 0.9643. The result further indicates that increase in bank size does not necessarily determine the volume of money deposits by customers. With exception of mobile transactions, the result indicates that high volume of ATM transactions is an evidence of high customer deposits. It is therefore suggested as a matter of policy, that bankers must sustain continuous public awareness and consumer education on the invariability of e-payments usage to endear customers to payment technology usage and facilitate attainment of cashless economy.