International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 5, Issue 3, March 2016
ISSN 2319 - 4847
E-payments Adoption and Customers’ Service
delivery in Nigerian Deposits Money Banks
Oladejo, Morufu. O
Department of Management and Accounting, Faculty of Management Sciences Ladoke Akintola University of Technology,
Ogbomoso, Oyo State, Nigeria
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.
Key words: E-payments Adoption, Customer Deposits, Deposits Money banks, Service Delivery, Nigeria.
1.INTRODUCTION
The recent cashless policy of the Nigerian government has been a subject of concern to accountants and players in
commerce. The central banks of Nigeria (CBN) strategic plan on payment system is designed to ensure that a larger
proportion of currency in circulation is captured within the banking system, thereby enhancing the efficacy of monetary
policy operations and economic stabilization measures. The position central bank of Nigeria (CBN Report 2012) that
cash related transactions represent over 99% of customers activity in Nigerian banks requires further empirical
investigation. According to Umeano (2012) the direct cost of cash was enormous and increasing and that Nigeria is a
cash-based economy with retail and commercial payments primarily made in cash. The benefits of e-payments system
have been described in the literature to include optimal tax revenue collection by government, increased economic
growth and increased financial inclusion while consumers will enjoy faster, easier payments. Also, benefits to
corporations and banks are better access to capital, increased efficiency of payment process and accounting, reduced
revenue leakages and more efficient treasury management; efficiency, reduced cost and increased banking penetration
(Oladejo and Akanbi, 2012; Simeh, 2012; Umeano, 2012). According to Ommachonu, (2012) the central banks of
Nigerian e-payments policy is expected to reduce cost of cash management by banks. Thus most banks in Nigeria were
reported to have established platforms for e-payments services as observed Ayo, Ekong, , Fatudimu, and Adebiyi,
(2007), Oladejo, (2014) including the old generation banks. This according to Popoola (2010) has been as a result of
exodus of customers to the New Generation banks that are technology inclined. Customers' taste and desire have begun
to raise the stakes of expectation of exceptional services. In Nigeria, electronic banking became prominent after the
Central Bank of Nigeria banking reformation exercise in June 2004, which was geared towards reducing the number of
banks in the country and making the emerging banks much stronger and reliable (Soludo 2007). Coupled with huge
investment on technology and widely adopted telecommunication networks, the banks offer a wide range of e-banking
services for effective and efficient of banking services (Adesina, Ayo and Ekong, 2008). The banking sector reform that
compelled increased capitalization on deposits money banks in Nigeria resulted in consolidation of banks since 2005.
This has made the post consolidated banks strived for improved customers service delivery through technology
adoption strategy. The strive for improved customers service delivery by banks could be traced to increasing demand for
better services by the customers who would like to transact their banking transactions at any time and convenient
location.
The usefulness of any particular payments product to an individual is an increasing function of the number of
individuals who already use and accept it in executing transactions as averred Abrazhevic, (2004). According to
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International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 5, Issue 3, March 2016
ISSN 2319 - 4847
Ezeoha, (2005) developments in Nigeria, such as the introduction of mobile telephone in 2001, improved access to
personal computers and internet service facilities have also added to the growth of electronic banking in the country.
Evidence from the literature shows that end user adoption of such sensitive technology as money-circulating payment
systems is the critical key aspect of the whole part of payment systems’ establishment (Chau and Lau, 2003;
Abrazhevich 2004; Al Sukar and Hassan. 2005; Sumanjeet, 2008; Adesina and Ayo, 2010; Oladejo and Ojo, 2010)).
This is further corroborated by Kondabagil, (2007) that any decision to adopt E-banking is normally influenced by a
number of factors which include customer service enhancement and competitive costs, all of which motivate banks to
assess their electronic commerce strategies. Other factors that influence e-payment adoption by banks as identified in
the literature are banks size, intensity of branches, customer demand for e-payments, gross earnings, percentage of
internet usage, education level of customers, cost of human resources and e-payment trading.
The extent to which customers service delivery is influenced by banks adoption variables and identified e-payment
systems like Automated teller machine (ATM), Internet banking, point of sales (POS) and mobile banking requires
further empirical study
1.2 Statement of the problem
The existence of empirical studies measuring combined effect of banks specific adoption variables (like bank size, cost
of human capital, intensity of branches) and four e-payment systems like Automated teller machine (ATM), Internet
banking, point of sales (POS) and mobile banking on customers service delivery is questionable in the Nigerian context
as at the time of this study. However, a bank that adopts electronic banking must develop different methods of
conducting business, methods which may introduce new risks to the bank. It is therefore important for Accountants,
bankers, policymakers and other players in commerce to understand how electronic transactions in commercial banks
influence customers service delivery. The combined effect of all e-payments instrument on performance of the adopting
banks measured by customers deposits is worthy of exploration.
1.3 Objectives of the Study
Examine the relationship between e-payments systems and customers deposits in Nigeria Deposits money banks
(DMBs)
Assess the influence of e-payment adoption on customers deposits in Nigeria Deposits money banks (DMBs)
1.4 Hypotheses of the Study
HO: E-payment adoption does not significantly influence customer deposits in Nigeria Deposits Money Banks (DMBs)
2.LITERATURE REVIEW
2.1 Concept of Banks Performance and E-Payment Adoption
Al-Refaee (2012) averred that commercial banks are considered the most important activities in the economic system
wheel in every community, due to the fact that the returns of the economic activity in the community are as much as the
banking contribution in the economic activity. Banks must have tough foundation in the globalization world and that
can be done by developing the accounting information systems through the e-commerce. For example the financial
performance of banks in 2007 showed significant jumps in all key performance metrics from 2006. For instance net
interest income and profit before tax rose by 202 % and 288 % respectively showing the resulting effect of the banking
reforms as banks were able to make use of their larger balance sheet (CBN Supervision Report 2007).
Understanding the link between internet banking and performance according to Khrawish, and Al-Sa'di (2011) is an
empirical issue. Commonly used measures of bank performances are the level of profits and growth in customers
deposits. Banks profitability can be measured by the return on bank's assets (ROA), a ratio of bank's net income to its
total assets. Another good measure of banks profitability is the ratio of net income to equity (ROE) rather than assets
since banks with higher equity ratio should also have a higher return on assets and finally the margin of interest. The
Key Performance Indicator (KPI) database includes important indicators regarding financial institutions. Growth,
earnings and capital aspects are part of the Key Performance Indicators. A performance indicator or key performance
indicator (KPI) is an industry jargon for a type of performance measurement. KPIs are commonly used by an
organization to evaluate its success or the success of a particular activity in which it is engaged.
Performance indicators differ from business drivers and aims (or goals). A school might consider the failure rate of its
students as a key performance indicator which might help the school understand its position in the educational
community, whereas a business might consider the percentage of income from returning customers as a potential KPI.
Bank KPIs include key performance indicators as Investment return metric like Return on operating capital Return on
Equity, Return on capital employed, Cost metrics like Overhead cost ratio, Cost to Income, Cost to assets ratio, Income
metrics like Gross profit, Interest spread, Non-interest income level, Fee income level, Interest margin metrics
Operating margin. Interest margin, Profit margin, Risk metrics like value at risk, Capital adequacy ratio, Company
assets metrics like Reserve requirement, Return on average assets, Non-performing assets.
2.2 Appraisal of e-payments system
According to Nupur, (2010) the growth of electronic banking in a country depends on many factors, such as success of
internet access, new online banking features, household growth of internet usage, legal and regulatory framework. e-
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banking can offer speedier, quicker and dependable services to the customers for which they may be relatively satisfied
than that of manual system of banking. It is believed that banks providing e-payment services like Automated teller
machine (ATM) Internet banking or the likes to their customers will be mostly patronised. This is because e-banking
system not only generates latest viable returns, it can get its better dealings with customers. It can be inferred from the
theory of consumer behavior that customers prefer functioning product or service that are easily accessible and satisfy
their need. The study of Karimzadeh, (2011) determined economical prospects of e-banking and found a significant
growth in the progress of payment system in Iran. Also Rasolinezhad (2009) findings suggest that ATM banking has
the highest performance in Iran among others in consonance with the findings of Agboola, 2006 and Ayo et al 2008
that ATM and internet banking were growing in Nigeria. Among e-payment products as concluded Karimzadeh,
(2011) the ATMs are the most widely accepted and highly utilized delivery channel in Iran but ATMs are not up to
date and mostly out of service .
Gao and Owolabi (2008) investigated the factors that influence the consumer adoption of internet banking in Nigeria.
The results showed that the currently relevant factors determining the adoption of internet banking in Nigeria include
the level of awareness or attention, the accessibility to computers and the internet, convenience, privacy, costs, and the
availability of knowledge and support concerning internet banking. This view corroborates earlier empirical findings
from the studies of Cho and Park, (2001), Chen, (2002), Cummingham et al (2005).
In the United States, there are 10 million payment terminals; over 60% currently dial-up terminals (Sumanjeet 2009).
Also, AlGhamdi et al (2012) observed that the global e-commerce spending is worth about US$10 trillion at present,
compared to US$0.27 trillion in 2000. The U.S.A accounts for the largest share (about 79%) of the current total,
followed by Europe. By comparison, the Middle East and African region has a very small share (around 3%). Epayments greatly increase payment efficiency by reducing transaction costs and enabling trade in goods and services of
very low value. They may also increase the convenience of making payments by enabling them to be made swiftly and
remotely from various devices connected to global networks. The major components of e-payment system are money
transfer applications, network infrastructures, and rules & procedures governing the use of the system. Electronic
payment is a payment carried out electronically. Some proposed electronic payment systems as observed Sumanjeet
(2009) are simply electronic version of existing payment systems such as cheques and credit cards, while, others are
based on the digital currency technology and have the potential for definitive impact on today’s financial and monetary
system.
Electronic payment system has accelerated the money circulation speed, and has brought the enormous convenience for
the modern trade activity (Weibing, 2011). Typically, this involves the use of computer networks such as the Internet
and digital stored value systems in form of cards made up of silicon chips. The system allows bills to be paid directly
from bank accounts, without being present at the bank with physical cash, and without the need of writing and mailing
cheques. It is card for card. According to Nowadays, Taddesse, and Kidan (2005) societies have well recognized
information and knowledge as invaluable resources. The growth of the Internet and World Wide Web (WWW) has
made electronic commerce (e-commerce) possible. E-Commerce in its simplest sense is trading electronically. It offers
consumers and merchants convenience and speed. The success and growth of e-commerce, however, depends on
efficient electronic payment (e-payment) system. With this trend, Moertini, Athuri,. Kemit and Saputro (2011) believed
that conducting transactions electronically has been becoming necessity and way of life of Indonesians.
2.3 Economic relevance of e-payments system
The emergence of e-commerce has created new financial needs that in many cases cannot be effectively fulfilled by the
traditional payment systems (Sumanjeet 2009). From the study of Briggs and Brooks (2011) an Electronic Payment
System (EPS) is a form of inter-organizational information system (IOS) for monetary exchange, linking many
organizations and individual use. According to Ozuru, Chikwe and Uduma, (2010), Electronic payment transactions in
the United State exceeded cheque payments for the first time in 2003. From 2000 to 2003, the volume of electronic
payment transactions grew from 30.6 billion to 44.5 billion, while the volume of cheque declined from 41.9 to 36.7
billion over the same period. For instance, in North America in the online B2C world, 90 percent of all online
consumer purchases are made with general – purpose credit cards. The same is true for the overwhelming majority of
online purchase in Nigeria. Similar trends are occurring in Nigeria today as averred Agboola ( 2006) that all banks in
Nigeria have one form of e- banking product or the other, all of which is geared towards delighting customers and with
the ultimate objectives by each of the banks to gain competitive advantage and market share. According to Taddesse,
and Kidan (2005), the major benefits of e-commerce which is the platform for e-payment systems include the
following among other things.
 Improved response time: communication and flow of information become quick and cost efficient.
 24/7 World round the clock availability of goods and services. Communicating, making order, buying, selling, and
paying occurs 24 hours a day, 7 days a week and 365 days a year.
 Extended market reach and revenue potential, and a wide range of choices and convenience for the customer.
 Geographic barriers or boundaries are removed. A merchant can reach a customer who is physically too far away.
The customer on the other hand, can make purchases from a merchant who would otherwise not have been
accessible to him.
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 Improved competitive positioning: The benefits of e-commerce are not limited to large entities. Small and medium
enterprises (SMEs) are also equal participants in the virtual environment.
 Reduced costs for the business firm and reduced price for the consumer.
However literature suggests that people are not willing to use any technology based payment system for fear of loss of
money to theft of fraud (Berger, 2003; Karimzadeh, 2011; Barriya nad Singh, (2012). This view is common to most
developing and emerging economies of the world. For instance the study of Karimzadeh, (2011) in Iran highlighted
various reasons why the Iranians are averse to use electronic payment system as follows which may not be at variance
with Nigerian situations as follows:
 Suppliers/ sellers are not trusted by people as they do not provide satisfactory information about themselves
 Lack of appropriate legal framework.
 Low internet connection speed and high prices of connecting to the internet. Although new ISPs (internet service
providers) are being introduced every day and broad band connections like ADSL with up to 2 Mb/sec speed are
available in recent years, still there are lots of people that only have access to low speed internet connection at high
prices which makes the electronically transactions vulnerable
 Absence of technical knowledge among traders, businessmen and user and non-user customers.
 Disproportion between New and traditional banking functions.
 Disintegrate between organizational and Information Technology infrastructures
 Law cooperation between different responsible sectors in electronic payment.
 Lack of infrastructure and weak telecommunication. In Iran, there seem to be inadequate information and
telecommunication technology infrastructures.
 Inadequate information and telecommunication technology infrastructures can negatively impact the adoption and
diffusion of electronic transactions.
 Lack of awareness, penetration of Internet and e-banking products in rural area
 Minimum level of English language is required. Another impeding factor that may throw a big blow to the
electronic banking system in Iran is the language barrier
 Lack of adequate experts in e-banking context. An inadequate number of well-trained technicians are also a factor.
 Maintenance and management of websites problems.
Given the important role that well functioning payment systems has on monetary policy, financial stability and overall
economic activity, the Central Bank of Nigeria (CBN) has put in place set of national system initiatives (CBN 2003). In
setting out the objectives of the National Payment System (NPS), the goal is to ensure that the system is available
without interruption, meet as possible all users need and operate at minimum risk and reasonable cost. The
Government of Nigeria further promoted electronic banking with the CBN release on August 2003. This recognizes
that electronic banking and payments services are still at the early stages of development in Nigeria. Arising from the
three major roles of the CBN in the areas of monetary policy, financial system stability and payments system oversight,
the CBN Technical Committee on E-Banking has produced a report, which anticipates the likely impact of the
movement towards electronic banking and payments on the achievement of CBN’s core objectives. Following from the
findings and recommendations of the Committee, four categories of guidelines have been developed as follows:
 Information and Communications Technology (ICT) standards, to address issues relating to technology solutions
deployed, and ensure that they meet the needs of consumers, the economy and international best practice in the
areas of communication, hardware, software and security.
 Monetary Policy, to address issues relating to how increased usage of Internet banking and electronic payments
delivery channels would affect the achievement of CBN’s monetary policy objectives.
 Legal guidelines to address issues on banking regulations and consumer rights protection.
 Regulatory and Supervisory, to address issues that, though peculiar to payments system in general, may be
amplified by the use of electronic media.has been becoming necessity and way of life of Indonesians.
2.4 E-payments system and customers service delivery
Sathye (1999) with respect to adoption of internet banking by Australian consumers found that two factors such as
“security concern” and “difficulty in use” are important reasons why customers do not want to use the service. On the
other hand, Jayawardhena & Foley (2000) suggested that the features of internet banking websites, such as: the speed to
download; content; design; interactivity; navigation; and security are critical to enhancing customer satisfaction. In
addition, Zeithaml et al (2002) have uncovered several quality dimensions related to online systems –ease of
navigation, flexibility, efficiency, site aesthetic and security.
Recently, Gefen et al (2003) have empirically found that two technological aspects of the web site interface, namely
perceived ease of use and perceived usefulness significantly affect customer repurchase intentions. Another rationale for
customer use of the internet is convenience. Customers would often prefer to complete their transactions at one site. In
this wise customers in e-commerce platform wish to pay their bills electronically and automatically, view and print
their monthly bank statements, and purchase stocks, insurance, and other financial offerings with utmost ease. It thus
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becomes strategic for companies with wide product lines to be able to attract large number of customers to their sites.
This is because the provision of a wide range of products and diverse features in the format required by customers is a
key to gaining customer satisfaction that enhances organisational performance.
Hamidinava and Madhoushi (2005) conducted research to evaluate the features of e-payment system in Iranian bank
users view, using questionaire design and ANOVA for pre observation test and Kruskal wallis test, the empirical results
showed that the first main factors of e-payment in the view of Iranian users are socio economical index, followed by
security index, legal index and then the technical index as having the most effects developing e-payment system.
Mashour and Zaatreh (2008) investigates the investment of information systems at Jordan banks and report the results
of an empirical study that evaluates the contribution of IS in the effective of banks operations. The research measures
the factors which determine information systems effectiveness at Jordan main banks. These variables are presumably
system decision performance system usage and user satisfaction among others that are considered the most effective
variables in bank performance. Singhal and Padhmanabhan (2005) explored the major factor responsible for internet
banking based on respondents’ perception on various internet applications. Primary data was collected by structured
survey. The survey was created online and link sent to the respondents from India using convenience sampling. The
study concluded that out of total respondents more than 50% agreed that internet banking is convenient and flexible
ways of banking and it also have various transaction related benefits.
In Nigeria, Adesina et al (2008) focussed on determining the level of users’ acceptance of electronic banking service
and investigating the factors that determine users’ behavioural intention to use electronic banking system in Nigeria.
The survey instrument employed involved design and administration of total of 200 survey questionnaire within the
Lagos metropolis and its environs. The result of the research showed that banks customers who are of e-banking system
use it because it’s convenient, easy to use, saves time and meet their transaction needs.
Furthermore in the study by Chiemeka, Evwiekpaefe and Chete (2006) some twelve Nigerian banks have introduced
online banking systems. The study reveals that customers were able to get up to date information through the online
banking system. Moreover, the study shows that the internet banking system is at a basic level and recommends that
bank managers need to improve on security levels and increase confidentiality, effective communication integrity and
availability. The study of Agboola (2006) revealed that most banks are discouraging cash and most banks are being
automated, reducing the volumes of cash transaction. This serves as pointer to the imperative of e-payments adoption
and their influence on performance.
Noteberg, Christiaanse and Wallage (2000) assessed the impact of third party-provided electronic commerce assurance
on consumers' likelihood to purchase products and services online and found third-party assurance significantly
increased purchasing likelihood and reduced consumers' concerns about privacy and transaction integrity.
Jayawardhena and Foley (2000) reported that Internet banking renders location and time irrelevant, empowers
customers with greater control of their accounts and that banks achieve cost and efficiency gains in a large number of
operational areas. Empirical conclusion of Brooks and Briggs (2011) that the technological payment infrastructure in
Nigeria was modern and of comparable standard calls for more studies. Oghenerukeybe (2009) concurs that the internet
is the medium for an escalating amount of business and other sensitive transactions, including online banking and ecommerce. E-payments system also includes point of sales (POS) and mobile banking.
3. METHODOLOGY
This study was to cover all the existing commercial banks in Nigeria after the banks consolidation exercise of 2005.
Out of the twenty commercial banks existing as at 2013 fifteen of them were quoted on the Nigeria Stock Exchange out
of which ten purposively selected for the purpose of the study. The reason for purpose choice of the sampled
commercial banks is based on their quotation on the Stock Exchange and consistent records of performance during the
period of study. The annual reports of sampled banks covering 2005 to 2013 were analyzed to achieve the objectives of
the study. Data were analysed using panel logistics to describe the pattern of performance expected of banks that adopt
and those that are yet to adopt all the identified four e-payment systems. This explained the adoption impact on banks
specific performance indices represented by customers deposits. Panel data can control for individual heterogeneity due
to hidden factors, which if neglected in time series or cross-section estimations leads to biased results (Baltagi 1995).
Using Panel logistic regression and least square the e-payments transaction decision by banks was represented by both
adoption decisions of four e-payments system (ATM, WEB (internet), POS and Mobile) by banks and volumes of
bank’s transaction of each of the four e-payment system highlighted by Central Bank of Nigeria (CBN) reports.
YPt = f (ATM, WEB, POS, MOB) ........................................................... (3.1)
Where
YPt = Banks performance measured by customers deposits
ATM = ATM usage by customers
WEB = Web (Internet) banking usage by customers
POS = Point of sales usage by customers
MOB = Mobile banking usage by customers
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4.RESULTS AND DISCUSSIONS
4.1 Influence of e-payments adoption on customers service delivery of Sampled Banks
This study The result of analysis of the influence of e-payments adoption on customers service delivery measured by
customers deposits in sampled banks were displayed in Table 4.1. According to the Table 4.1, bank size was found to
be negative but significantly related to performance of banks measured by customer deposits at 1% level. The result
indicates that increasing in bank size does not necessarily determine the volume of money deposits by customers. Cost
of human capital was however found to be positive but not significantly related to performance of banks. The result
implies that increase in personnel costs is required to mobilise more people to deposits in banks hence increasing the
volume of deposits in banks. Banks with a widespread network of branches and close contacts with customers are
relatively less stimulated to invest in the provision of on-line financial services, as they can rely upon their brick-and
mortar infrastructure to maintain strong relationships with the local market and thereby improve their performance
level in terms of profit. This is captured by the negative relationship between the intensity of branching and the
measure of performance.
With exception of mobile transactions, the result indicates that high volume of ATM transactions is an indication of
high customer deposits. The variable is found to be positive and significantly related to customer deposits alongside
volume of POS. This is in line with the finding of Ayo and Ukpere, 2010 that the automatic teller machine (ATM) is
the most widely used e-Payment instrument in Nigeria and responsible for about 89% (in volume) of all e-Payment
instruments since 2006 to 2008. This is because some customers have at least two ATM cards depending on the number
of accounts operated by them and they represent the active users of the ATM cards. Cost of human capital is however
found to be positive but not significantly related to performance of banks measured by customers’ deposits. Banks with
a widespread network of branches and close contacts with customers are relatively less stimulated to invest in the
provision of on-line financial services, as they can rely upon their brick-and mortar infrastructure to maintain strong
relationships with the local market and thereby improve their performance level in terms of profit. This is captured by
the negative relationship between the intensity of branching and the measure of performance
Table 4.1 Influence of e-payment adoption on customer deposits
Variable
Coefficient
Std. error
z-statistics
Prob.
Bank size
-.9764925
.1748573
-5.58
0.000***
.0006769
.0002971
2.28
0.028**
Intensity of branching
.1872646
.9303018
0.20
0.840
Volume of POS
.0002503
.0000986
2.54
0.011**
Mobile
1.98e-07
2.51e-07
0.79
0.430
ATM
.0021379
.001102
1.94
0.052**
WEB
-.0000299
.0000205
-1.46
0.144
10.07432
1.420378
7.09
0.000***
Cost of human capital
Constant
Wald chi2 = 129.69
Prob > chi2 = 0.0000
Source: Data analysis, 2014
The above findings are at variance with the studies of Hamidinava and Madhoushi (2005) main factors of e-payment in
the view of Iranian users were socio economical index, followed by security index, legal index and then the technical
index as having the most effects developing e-payment system. It however tallies with the findings of Mashour and
Zaatreh (2008) that found the user satisfaction in term of customers demand for e-payment among others as the most
effective variables in bank performance. It corroborates the earlier study of Negrín, Ocampo and Santos (2011), Barriya
and Singh, (2012) that banks with better internet infrastructure and higher income clients have superior adoption rates
than banks that have decided to keep on running business mainly through their branches.
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5. CONCLUSION
The overall conclusion revealed that when banks adopt e-payments their performance measured by customers deposits
changes. Another important finding of the study is that increase in bank size does not necessarily determine the volume
of money deposits by customers. Increase in personnel costs is required to mobilize more people to deposits in banks
hence increasing the volume of deposits in banks. With exception of mobile transactions, the result indicates that high
volume of ATM transactions is an indication of high customer deposits in the sampled banks.
Recommendation
In the light of the above the following suggestions may be found useful for bankers
 Bankers should see investment in e-payment system as customers attraction strategy as this would make for
increased patronage of such banking services.
 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.
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AUTHOR
Morufu Oladehinde Oladejo received the BSc, and MSc. degrees in Accounting and MBA from
Olabisi Onabanjo University Ago Iwoye in 1995, 2000 and 2008 respectively. He received Ph.d in
Financial Management from Ladoke Akintola University of Technology in 2014. He became
Associate of both the Institute of Charttered Accountants of Nigeria (ICAN) and Chartered
Institute of Taxation of Nigeria (CITN) in 2001 and 2005 respectively. He is also examiner and
assessor to both Institutes. He is currently lecturing in the department of Management and
Accounting, Faculty of Management Sciences Ladoke Akintola University of Technology,
Ogbomoso Nigeria. His research area is in Accounting, Finance and Information
CommunicationTechnology.
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