EFFECTS OF ELECTRONIC PAYMENT SYSTEM CHANNELS ON NON-FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examined the effect of e-payment system on non-financial performance of deposit money banks (DBMs) in Nigeria. The study adopted cross-sectional survey research design and collected data using primary method through self-administered questionnaire. The population of this study is 452 staffs of fifteen (15) selected DBMs branches in Bauchi state, while 210 were sample using Krejcie and Morgan with proportionate stratified sampling technique. After adding 60 questionnaires to cover non-response, the study achieved 79.1% valid response rate. PLS-SEM was used for data analysis in the study. It was found that Automated Teller Machine (ATM), Point of Sales (POS) and NIBSS Electronic Fund Transfer (NEFT) have significant positive effect on non-financial performance, while internet banking and agency banking have insignificant effect. In line with these findings, the study recommends the need for banks to invest in upgrading the channels of e-payment infrastructures to offer advance features and enhance customer experience to attract tech-savvy users. The banks should also provide incentives to the POS merchants in order to encourage more of its usage by discounting transaction fees, marketing support and loyalty bonuses. Further, Nigerian government should provide regulatory supports that will encourage innovation and investment in e-payment channels infrastructure, while ensuring consumer protection and security standards.