The Impact Of Electronic Payments System On Nigeria National Development

The Impact Of Electronic Payments System On Nigeria National Development

Chapter One

Preface

Background Of Study

Payment systems have passed through a lot of periods. Prior to the 700bc, shells frequently were used in trade and trade and also cowries were introduced in Asia Minor. In Nigeria and other African countries, else objects were used for payments. The objects were in form of cowries, coral globules, ivory, beautifiers and lavalieres ; and were used for payments. The early European dealers substantially the Portuguese and Spaniards accessibly bought goods with cowries and manila. With the preface of essence coins and notes in Greece and India between the tenth and sixth centuries Bc and later dominated trade for 2000 times, the period of cash as payment system surfaced. In Nigeria, the central bank of Nigeria introduced the bank notes and coins in the time 1973. This was latterly followed by the use of cheque as written instructions to transfer precious essence coins from one holder to another. other written instructions similar as credit transfer, standing orders, postal orders, bill of exchange, and trippers ’ cheque have also been used. The coming great age of payment system that followed paper instructions is electronic payments. Some payments are now being automated and absolute volumes of cash sale have declined under the impact of electronic sale brought about by the relinquishment of ICT to the payment system, especially in the developed countries.

The preface of technology grounded payments has done a lot to increase the convenience of banks guests, staffs as well as the society at large( Kelvin, 2012). The Nigerian payments systems evolved from manually reused cash sale’s to online and real time electronic payment system. This elaboration is in response to growing marketable conditioning and the penetration and application of the cyber space and technology for marketable conditioning. moment paying and entering plutocrat between buyers and merchandisers aren’t inescapably done through raw cash. similar payments can be made usinge-payments channels similar as automated teller machine( ATM), internet, and point of deals outstations( POS), mobile plutocrat results and so on and so forth.

Although, the use of these payment mechanisms aren’t completely free from problems frequently, guests witness detention in having timely access to the services handed through electronic channels( Olakah, 2012). One star challenge in the use of electronic payments channels( EPC). Power problem is a monster hanging every business in Nigeria. A common pang in the use ofe-payment device known as automated teller machine( ATM) is enmeshing cards for days by outstations therefore precluding guests from making deals until he or she’s suitable to recoup his/ her card from the machine. sometimes, the automated teller machine( ATM) may disbenefit a client’s account without allocating cash to him her, similar case has to be reported or the guests accepts liability. Generally, in every electronic card grounded payment mechanisms,” garçon down” is a usual shoptalk, meaning that there’s a network failure. When this occurs, the machine is temporarily unfit to serve duly or observe instruction given by the guests at the payments outstations.

The development of different electronic payment systems has helped to enhance the payment of cash in banks up to a limit of N500, 000( Five Hundred Thousand Naira only) daily by individual guests and N( Three Million Naira only) for commercial guests without attracting charges except pullout is above the limit stated. The payment has also promoted effectiveness in the clearing of fiscal instruments between the banks and Central Bank of Nigeria( 2010). Despite the challenges attributed to the use of electronic payments bias, the bias have indeed give relieve and convenience to the banking public, thereby promoting trade and commerce and helping to grow the sectors of the frugality.