ELECTRONIC PAYMENT AND QUOTED FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Electronic -payment is increasingly becoming a daring means of payments in today’s business world. This is due to its efficiency convenience and timeliness. The aim of this study is to empirically analyze the relationship between electronic payment and quoted financial performance of deposit money banks in Nigeria. Data on different types of electronic payment and return on equity from 2007-2018 were collected from the central bank of Nigeria Statistical bulletin, annual Central Bank of Nigeria reports, Federal Inland Revenue Service, financial annual reports and e-business units report of the quoted deposit money banks. The ordinary lest square, Auto-Regressive Distributed Lag, Unit Root Test, Panel Cointegration, Granger Causality Test and Panel Dynamic, Error Correction Model was used in analyzing the data with the aid of E-view version 10. The empirical results indicate that electronic payment significantly relate to return on equity; explaining about 85.3% of the total variation in return on equity, web pay and mobile pay were each found to significantly relate to quoted financial performance, sustaining long run equilibrium relationship with return on equity. We therefore conclude that e-payment has the potency to make significant contribution to quoted banks financial performance and recommends that Central Bank of Nigeria should provide adequate regulatory framework that will ensure customer protection and security of their transactions from cyber-crimes and hackers. The use of established information system models in technology related researches so that the needed factors to be examined would be properly investigated and addressed.