Electronic Banking in Nigeria

4956 Words Oct 15th, 2011 20 Pages
Electronic Retail Payment Systems:
User Acceptability and Payment Problems in Nigeria
1.1 Introduction
The world has witnessed an upsurge of electronic payment instruments meant to facilitate trade and simplify payments. (Abor, 2004) Before the introduction of electronic payment into the Nigerian banking system, all customers had to walk into the actual bank to do transaction of all kinds. Customers had to queue up and spend more hours to talk to a teller to make their transactions. (Abor, 2004) The inconveniences caused by these long queues can discourage someone to make payment. For many years, bankers, technology specialists, entrepreneurs, and others have advocated for the replacement of physical cash and the introduction of more
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1.3 Factors Affecting Payment Choice
1.3.1 Customers’ Wealth/Levels of Income
Consistent with Kwast and Kennickell (1997) research, wealth has an important role to play in terms of consumer’s decisions on payment choice. Consumers’ wealth may influence payment choice and the availability of payment instruments that one can choose. For instance, while wealthy consumers may be able to fund their obligations generally, consumers that experience brief financial shortfalls may not find electronic bill payment desirable as a payment instrument.
(Mantel, 2000) In such a situation, the consideration of the risk factor will let some consumers to avoid using pre-authorized electronic bill payment.
1.3.2 Educational Level
On the bank customers’ survey, we also focused on education, because this might affect the demand for electronic banking products. For example, Kwast and Kennickell (1997) have illustrated how education play important role in determining household use of e-money products.

Kwast and Kennickell concluded that the US market for such products is still highly specialized, with
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