EFFECTS OF ELECTRONIC PAYMENT SYSTEM ON THE ECONOMIC GROWTH OF NIGERIA

Technological advancement has provided efficient and effective payment system devoid of 'cash and carry syndrome. Specifically, electronic payment system provides a medium through economic exchanges take place without visiting brick and mortal banks or with no physical presence of the transacting parties. While electronic payment system enjoys prominence in Nigeria, evidence of its contribution to economic development has not been empirically established in Nigeria. Meanwhile, the current transition to cashless economy was essentially based on the prominence of e-payment system. Therefore, this study will explore the impact of electronic payment system on the economic growth of Nigeria. Data will be analysed using OLS Regression and Correlation methods covering period of 6 years (2010 - 2015) via SPSS to test the formulated hypotheses on whether or not there is significant relationship between electronic payment systems and the economic growth of Nigeria. The result indicates a significant relationship between e-payment system and economic growth in term of real GDP per capita. Only POS was found to positively contribute to economic growth while other e-payment channels contribute negatively. Hence, current cashless policy should be tailored towards effective e-payment system and other factors which bear much relevance on successful transition to cashless economy should be prioritized..