Effect of Electronic Payment Channels on the Performance of Commercial Banks in Nigeria
Oladipo Olaseni Sopitan
Personal and Business Banking Solution, Stanbic IBTC Bank, Lagos, Nigeria.
Sheriffdeen Taiwo Oyeyemi *
Department of Research, Planning and Statistics, The Medical Rehabilitation Therapists (Reg.) Board of Nigeria, Nigeria.
Oluwatoyin Dairo
Department of Statistics, University of Lagos, Akoka, Lagos, Nigeria.
Oluwabusola Omotola
Personal and Business Banking Solution, Stanbic IBTC Bank, Lagos, Nigeria.
Francis Akpoviri Saduwa
Department of Statistics, University of Lagos, Akoka, Lagos, Nigeria.
Ogunlade Emmanuel Sesan
Department of Accounting, The Medical Rehabilitation Therapists (Reg.) Board of Nigeria, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study employed a descriptive survey research design to investigate the effect of electronic payment channels on the performance of commercial banks in Nigeria. The target population comprised over 2,500 relationship officers of Stanbic IBTC Bank Plc, from which a purposive sample of 120 respondents was selected. Data were collected through structured questionnaires. The reliability and consistency of the research instrument were assessed using Cronbach’s alpha, which yielded a value of [insert value], indicating acceptable internal consistency.
The data were analyzed using both descriptive and inferential statistics. Specifically, frequency counts, percentages, multiple regression, and chi-square tests were employed to examine the relationships between electronic payment channels—Automated Teller Machines (ATM), Point of Sale (POS), Mobile Banking, and Internet Banking—and bank performance. The results showed a significant relationship between electronic payment channels and the performance of commercial banks in Nigeria. ATM, POS, and Mobile Payment Systems positively impacted bank efficiency, while Web Payment showed mixed effects. The findings highlight the importance of digital financial services in enhancing banking operations and customer satisfaction.
This study contributes to the growing knowledge on electronic banking and financial performance, providing practical insights for policymakers, banking institutions, and regulators. It underscores the need for continuous investment in secure and efficient e-payment infrastructures to optimize bank profitability and customer experience.
Keywords: Access products, ATM card, Automated Teller Machine (ATM), chip card, Point of Sales (POS), Electronic Data Interchange (EDI), electronic money, electronic recruitment, electronic web collection, internet banking, mobile banking, payment system, smart card, transaction alert