User Acceptability and Payment Problems in Nigeria
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 flexible, efficient and cost-effective retail payment solutions. Countless conferences and seminars have been held to discuss the concepts of cashless and “chequeless” society. (Bank for International Settlement, 1998)
Electronic retail payment has been designed to help individual customers and companies as well as the banks itself in eliminating or reducing some of the problems inherent in the settlement and payment process. (Federal Reserve Bank of New York, 1996) Customers can pay their bills without having to actually move to the bank’s premises. They may also have access to their account information and even transfer money to other accounts in the comfort of their homes.
Nigerian banks are making huge investments in technology to upgrade their infrastructure, in order to provide new electronic information-based services. Electronic services such as online retail banking are making it possible for individuals and small institutions to take advantage of new technologies at quite reasonable costs. (Abor, 2004)
In Nigeria, electronic retail payments are being continuously developed, to replace or reduce paper-based payments. Many new payment services have come into existence in recent years, most of which are based...