Dissertation Adeniyi Balogun Electronic Retail Payments System in Nigeria (Repaired)

ELECTRONIC RETAIL PAYMENT SYSTEMS IN NIGERIA :User Acceptance Through Infrastructure Perspectives
Dissertation submitted in part fulfillment of the requirements for the degree of Masters of Arts in Financial Management at Liverpool John Moores University
Adeniyi Balogun
MASTERS OF ARTS IN FINANCIAL MANAGEMENT
DECEMBER 2012
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Electronic Retail Payment Systems In Nigeria: User Acceptance Through Infrastructure Perspectives A. Balogun
Declaration
No portion of this work referred to in the dissertation has been submitted in support of an application for another degree or qualification of this or any other university or other institute of learning. Further, all work in this dissertation is entirely my own, unless referenced in the text as a specific source and included in the bibliography.
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This work is dedicated to the Allu 4.

What a way to pay the ultimate price
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Abstract
This study examines the recent Cash-less policy of the Central Bank of Nigeria (CBN), with the main objective of identifying infrastructural constraints to Electronic Retail Payments Systems (ERPS) adoption by the Nigerian consumer. The paper presents a multidimensional analysis of ERPSs adoption. It evaluates characteristics of ERPSs as determinants of user acceptance (Abrazhevich, 2002) and, through a survey, identified which are most important to Nigerian consumers. On the other hand, a critical analysis of existing ERPS infrastructure was undertaken based on international frameworks and guidelines provided by the CPSS, PSDG and the SADCscanning authoritative sources for actions set in motion by Nigerian regulators to mitigate inherent bottlenecks. Finally, this paper provides recommendations by fusing discoveries from user perceptions of ERPSs and identified Infrastructural constrictions.
Findings highlighted low awareness levels of ERPSs functionality as well as a lack of trust towards its adoption by Nigerian Consumers. The study also revealed regulators commitment towards the policy; however, the Big-bang1 approach presents challenges as it seems too much is being undertaken all at once. In conclusion, this paper presents strategies to improve consumers trust in the Cash-less Nigeria initiative, emphasising increased communication, security, and awareness, through various formal and informal mediums.
Key Words: Electronic payment systems, Electronic retail payment, User acceptance, Nigeria.
A type of instant changeover, where parties associated with a new system moves to the fully functioning new system on a given date
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Acknowledgement
To the King of Kings and the Lord of Lords, my God in whom I trust what would I be without you? I wonder To my Agbk, my gem of incomputable fortune, here is a BIG thank you. To Otunba Adeolu BalogunMentor Extraordinaire. Thanks for your investments in me. My deep appreciation goes to Mr Gavin Brown, Dr Yvonne Morgan, Mr Mike Cremin and Ms Liz Harvey. Without your individual contributions towards my personal, academic and professional development at some point, completing this work would not have been possible. It has been a great privilege, learning from and meeting you all. On a final note, to my Siblings, Good friends and my growing number of Nieces and Nephews, I say thank you for your continuous support and encouragement pre, during and post this academic engagement. I love you all. Adeniyi Balogun. Manchester, UK 11th November, 2012
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List of Content
DECLARATION ............................................................................................................................. I ABSTRACT .................................................................................................................................. III ACKNOWLEDGEMENT ........................................................................................................... IV LIST OF TABLES .................................................................................................................... VIII LIST OF FIGURES ..................................................................................................................... IX LIST OF ABBREVIATIONS ...................................................................................................... XI
1.
INTRODUCTION ......................................................................................... 1
1.1 1.2 1.3 1.4 1.5 1.6 STUDY BACKGROUND ......................................................................................... 1 COUNTRY OVERVIEW.......................................................................................... 3 PROBLEM DISCOURSE ......................................................................................... 5 RESEARCH OBJECTIVES AND QUESTIONS ........................................................... 7 SCOPE AND DELIMITATION ................................................................................. 8 STRUCTURE OF DISSERTATION ........................................................................... 9
2.
ELECTRONIC RETAIL PAYMENT SYSTEMS (ERPS) ..................... 11

2.1 2.2 2.3
2.3.1 2.3.2
DEFINITION OF ERPSS ...................................................................................... 12 GLOBAL SNAPSHOT OF NON-CASH PAYMENTS ................................................ 12 THE NIGERIAN CONTEXT .................................................................................. 14
Electronic Payment Environment in Nigeria ............................................................. 16 Types and classifications of ERPSs in Nigeria ......................................................... 19
2.4
2.4.1 2.4.2
USER ACCEPTANCE OF TECHNOLOGY .............................................................. 26

Technology Adoption Theories .................................................................................. 26 ERPS Characteristics as Determinants of User Acceptance ..................................... 29
2.5 2.6
2.6.1 2.6.2 2.6.3
MECHANISM OF ELECTRONIC RETAIL PAYMENT SYSTEMS.............................. 31 INTERNATIONALERPS FRAMEWORKS AND GUIDELINES ................................. 33
Payment Systems Development Group (PSDG) ........................................................ 34 Committee on Payment and Settlement Systems (CPSS) ........................................... 36 Southern African Development Community (SADC) ................................................ 37
3.
RESEARCH METHODOLOGY ............................................................... 39

3.1 3.2 3.3 3.4 3.5 3.6
3.6.1 3.6.2 3.6.3 3.6.4
RESEARCH PURPOSE ......................................................................................... 39 PRAGMATISM PHILOSOPHY ............................................................................... 40 MIXED APPROACH ............................................................................................ 42 ACTION RESEARCH STRATEGY ......................................................................... 43 MIXED-MODEL CHOICES .................................................................................. 44 DATA COLLECTION AND ANALYSIS .................................................................. 46
Self-Administered Questionnaires ............................................................................. 46 Multiple-Source Secondary Data .............................................................................. 47 Stratified Random Sampling ...................................................................................... 48 Quantitative and Qualitative Data Analysis .............................................................. 48
3.7 3.8
ACCESS.............................................................................................................. 49 ETHICAL CONSIDERATIONS............................................................................... 49
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3.9
3.9.1 3.9.2 3.9.3
CREDIBILITY OF RESEARCH DESIGN ................................................................. 50

Validity ...................................................................................................................... 50 Reliability .................................................................................................................. 51 Generalisability ......................................................................................................... 52
4.
USER SURVEY OF ERPS ......................................................................... 53

4.1
4.1.1 4.1.2 4.1.3
DEMOGRAPHICS AND DESCRIPTIVE STATISTICS .............................................. 53

Age............................................................................................................................. 54 Education .................................................................................................................. 55 Income And Employment ........................................................................................... 56
4.2
USER PERCEPTIONS OF ERPSS CHARACTERISTICS ........................................... 57
5.
NPS STOCKTAKING REPORT ............................................................... 62

5.2
5.2.1 5.2.2
ENVIRONMENTAL .............................................................................................. 64
Country Demographics ............................................................................................. 64 Physical Infrastructure .............................................................................................. 66
5.3
5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.3.6
INSTITUTIONAL ................................................................................................. 69
FGN ........................................................................................................................... 69 CBN ........................................................................................................................... 70 DMB .......................................................................................................................... 71 Non-Banks ................................................................................................................. 72 Telecommunications Networks .................................................................................. 74 Switching Companies ................................................................................................ 74
5.4 5.5
5.5.1 5.5.2
LEGAL AND OVERSIGHT LANDSCAPE ............................................................... 76 TECHNOLOGICAL............................................................................................... 78

Infrastructure and Application .................................................................................. 78 Development and Deployment of Technology ........................................................... 79
5.6 5.7 5.8
BUSINESS ENVIRONMENT ................................................................................. 82 FINANCIAL......................................................................................................... 83 SWOTS GRID .................................................................................................... 84
6.
CONCLUSIONS AND RECOMMENDATIONS .................................... 85

6.1 6.2 6.3 6.4 6.5 TRUST .............................................................................................................. 86 SECURITY ....................................................................................................... 87 COST ................................................................................................................ 87 RELIABILITY AND USABILITY .................................................................. 88 CONFIDENTIALITY AND REWARD ........................................................... 89
7.
RESEARCHERS REFLECTIONS ON LEARNING ............................. 92

7.1 7.2 7.3 7.4 INTRODUCTION .................................................................................................. 92 WHAT HAS BEEN LEARNT? .............................................................................. 92 HOW HAS THE LEARNING OCCURRED? ............................................................ 94 FUTURE APPLICATIONS OF LESSONS LEARNT .................................................. 97
REFERENCES AND BIBLIOGRAPHIES ...................................................... 98 APPENDICIES.................................................................................................. 114

APPENDIX A1 LEGAL: SCORING METHODOLOGY ....................................................................... 114
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APPENDIX A2 TECHNOLOGY; SCORING METHODOLOGY ........................................................... 115 APPENDIX A3 OVERSIGHT SCORING METHODOLOGY................................................................ 117 APPENDIX B SURVEY INSTRUMENT ......................................................................................... 119 APPENDIX C GUIDELINES ........................................................................................................ 123 APPENDIX D HYPOTHESIS TESTING ......................................................................................... 124
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List of Tables
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Selected Social and Infrastructure Indicators Product classification Channel classification ERPS Characteristics NPS Perspective Pragmatist Philosophy Approach emphasis Strategy Criteria Qualitative v Quantitative Mixed-Model Questionnaire choice criteria Country demographics Communication facts Electricity facts Transportation facts DMB facts Legal and oversight scoring Development and deployment scoring SWOTs Grid
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List of Figures
Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 Figure 22 Figure 22 Figure 23 Figure 24 Figure 25 Figure 26 Figure 27 Timeline of money GDP Growth rate OPEC Share of world crude oil reserves GNI per capita (US$) Structure of dissertation. Literature Map Global Non-cash Payment Report 2011 Key Global players Currency-In-Circulation Nigerian cash transaction World Literacy map 2011 CIC to GDP ratio CIC per capita Corruption Perception Index 2011 Internet users (per 100 people) Mobile cellular subscriptions (per 100 people) Electric power consumption (kWh per capita) Cards accepted here sign Mobile phone transactions M-PESA transaction in Kenya POS Transaction ATM located outside bank Biometric authentication Diffusion of innovations Technology Adoption Model Theory of Reasoned Action Organisation of electronic retail payment systems Electronic retail payment processes. Payment System Development Group Framework
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Figure 28 Figure 29 Figure 30 Figure 31 Figure 32 Figure 33 Figure 34 Figure 35 Figure 36 Figure 37 Figure 38 Figure 39
NPS MODEL The research onion Qualitative V Quantitative Age demographics Education demographics Income and employment demographics Survey highlights Interoperability and Acceptability Non-Banks and trust Innovations in smartcard technology Kolbs Learning Cycle Kolb with Honey and Mumford Combined
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List of Abbreviations
ACH ATM B2C BIS BRIC CIC CBN CEMEA CPSIPS CPSS DMB EBPP EFINA ERPS FGN FSAP GDP GNI GSM HIC ICT IMF LIC NBS NIBSS NPC NPS OPEC OTC P2P Automated Clearing House Automated Teller Machine Business to Consumer Bank for International Settlements Brazil Russia India and China Cash in Circulation Central Bank of Nigeria Central Europe Middle East and Africa Core Principle for Systematically Important Payment Systems Committee on Payment and Settlement Systems Deposit Money Bank Electronic Bill Presentment and Payment Enhancing Financial Innovation and Access Electronic Retail Payment Systems Federal Government of Nigeria Financial Sector Assessment Program Gross Domestic Product Gross National Income Global System for Mobile Communications High income countries Information Communication Technology International Monetary Fund Low income countries National Bureau of Statistics Nigerian Inter Bank Settlement Systems National Planning Commission National Payment System Organisation of Petroleum Exporting Countries Over the Counter Person to Person
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PIN PSP POS PSDG SADC SIPS SSA SWIFT TAM TALC TRA UKTI WPR
Personal Identification Number Payment Service Providers Point of Sale Payment Systems Development Group Southern African Development Community Systemically Important Payment Systems Sub Saharan Africa Society for Worldwide Interbank Financial Telecommunications Technology Acceptance Model Technology Adoption Life Cycle Theory of Reasoned Action United Kingdom Trade and Investment World Payment Report
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1. Introduction
In this chapter the researcher introduced the topic that is being researched: Electronic Retail Payment Systems in Nigeria : User acceptance through infrastructure perspectives The researcher described the background, country overview, problems statement, scope, as well as the research objectives and questions.
1.1 Study Background

In his classic work, An Inquiry Into The Nature and Causes of The Wealth of Nations, Adam Smith noted, the division of labor from which so many advantages are derived, is not originally the effect of any human wisdom, it is the necessary, though very slow and gradual, consequence of a certain propensity in human nature, which has in view no extensive utility; the propensity to truck, barter and exchange one thing for another (Smith 1776, vol. 1: 17).
Since the overcoming of barter in the history of mankind, trade has consequently involved the exchange of goods and services for equivalents of abstract value representation such as money (Sadeghi and Schneider 2001). A reality, through which every man lives by exchanging, and or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society (Smith 1776 vol. 1: 20).
Over the course of history, abstract value depictions has seen money evolve through primitive items such as cowries and cattle (9,000 BC), coins (1000 BC), fast forward to the penny and the pound in medieval European era between 4101485 (Davies 1996).
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Figure 1 Timeline of money
source: www.bemoneyaware.com
Expansion in trade and finance volumes in 1485 saw money evolve through cash as banknotes, cheques and early paper-based credit card payments (ibid). Money in the process has facilitated exchange, stored value, served as a unit of account and hence, measurement, whilst also furnishing a platform for deferred payments (Stewart 1898, Spalding 1921). Innovations in payment technology such as ATMs, credit cards and mobile payment etc. have recalibrated traditional payment systems (Kalakota & Whinston 2000, WPR 2011, BIS 2012), bypassing the human interface through banks (Abrazhevich 2001a). This paradigm shift forms its base on cashless transactions, where individuals are able to pay for goods and services through electronic channels, absent physical cash (Khiaonarong and Liebenau 2009) in a form known as e-payment (Asaolu et al 2011).
This is not to infer earlier means of payments have not served their purpose. Just as paper money replaced precious metals to pave way for the industrial revolution (Estabrooks 1988), ERPSs are here to provide a platform for globalisation. During the late 1990s, a number of African nations began implementing policies to modernise their National Payment Systems (NPS) (Susanto and Zo 2011). Progresses in e-payment technology had informed an opportunity to improve the effectiveness of existing retail payment structures (SADC 2002). Preceding deployment of electronic retail payment in Nigeria, cash-dependence meant retail transactions were 100 percent cash based (Asaolu et al 2011). This deterred most Nigerians from depositing their money in banks, opting instead to save and spend in physical cash (Ayo 2012, Ovia 2009). Among other matters to be explored, this phenomenon increased the number of adult population without bank accounts and its related services (Gholami et al 2010).
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Driven mainly by ATMs, the use of e-payment systems in Nigeria accounted for N360bn ($2.4bn) transaction value in 2008 (Ayo et al 2008). With a $250bn GDP in the same year, this is comparatively low (Adesina and Ayo 2010). ATMs are used mainly for cash withdrawal towards the final leg of retail transactions (ibid), bypassing payment channels like the POS and internet based e-commerce. Notwithstanding renewed efforts to entrench e-payment use, cash remains the most preferred payment method among Nigerians.
1.2 Country Overview

Nigeria is the most populous country in Africa, with a population of 168 million people (NBS Nigeria 2012). As Africa's second-largest economy (after South Africa), Nigeria has one of the fastest growing economies in the world, with an average real GDP growth rate of 7.2% between 20092011 (World Bank 2012).
Figure 2 GDP Growth rate
Source: World Bank, 2012
Ranked as the 8th largest among OPEC members in crude oil reserves, Nigeria remains under developed, owing to years of successive military rule and economic mismanagement (Okonjo-Iweala et al. 2007, UKTI 2010).
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Figure 3. OPEC Share of world crude oil reserves
As a consequence, economic stagnation engendered increased poverty and depletion of public institutions (Obasanjo 2007), heralding endemic corruption (Okonjo-Iweala 2007). Public expenditure on human capital and infrastructural development has been affected as a result; with 70% of Nigerians currently living below poverty line (CIA 2012). In 2011 GNI per capita shows Nigeria is way behind at $1200 per capita in comparison to South Africa, UK and the USA.
Figure 4 GNI per capita (US$)
Table 1 highlights select social indicators in comparison with world regions on income differentiated basis. This summarily attempts to presents the Nigerian picture.
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Table 1. Selected Social and Infrastructure Indicators 2009-2010 NIGERIA GNI per capita Atlas Method (US$) GDP (US $ bn) Internet users (per 100 people) Mortality rate, under 5 (per 1,000) Electric power consumption (kWh per capita) Literacy rate % Source: Adapted from Okonjo-Iweala et al (2007) 1,180 194 28.4 143 121 61 SSA 1,176 1,097 10.9 58 511.5 73 LIC2 528 416 30.5 58 229.5 HIC 40,136 40,819 69.8 58 9,117 100
While its public institutions are still fragile (CIDA 2012), Nigeria has undertaken a series of national reform programmes since returning to democratic governance in 1999. The Nigeria Vision 20:2020 strategy is aimed at launching the country onto a path of sustained and rapid socio-economic development by year 2020. A subset, The Payment System Vision 2020 was developed in 2007 with an objective to promote and entrench electronic payments among economic agents. (NPC Nigeria 2012)
1.3 Problem Discourse

The Central Bank of Nigeria (CBN), a body responsible for the overall control and administration of the Federal Government of Nigerias (FGN) monetary and financial sector policies, issued a policy circular on 20 April, 2011, titled Industry Policy on Retail Cash Collection and Lodgement. Taking effect from 1st January 2012, it stipulates a maximum daily amount of cash withdrawals and lodgements through Deposit Money Banks (DMBs), for individuals and corporations, above which a cash handling charge is applied. This policy gave rise to the Cash-less Nigeria initiative, with the primary objective of entrenching electronic payment adoption for retail transactions. The
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On 16 April 2011, Nigeria was upgraded from Lower Income to Lower Middle Income (World Bank, 2012)
th
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CBN assures that when fully operational, the policy will drive the development and modernisation of Nigerias national payment systems (CBN 2011). A lot of criticisms have trailed the Cash-less policy since its introduction, mainly owing to presumed inadequacy in planning, low awareness levels of banking services, online-payment fraud, and the deficient state of existing epayment framework (Guardian Nigeria 2011, Atanda and Alimi 2012).
User acceptance being crucial to the success or failure of any information system initiative (Davis 1993, BIS 2012,Tucker 2012) is a major barrier confronting the Cash-less Nigeria projectunderstanding its dynamics is important for the success of the initiative. Although there is nothing impossible to him who will try (Alexander the Great, nd), Nigerias present legal, knowledge and physical infrastructure framework present strong challenges to the smooth transition from an omnishambles epayment structure, to Nigerias Eldorado of electronic retail payment technology dispersion.
The researcher believes findings from this undertaking will provide fresh analysis and insight to enable consumers, analysts and policy makers understand and identify challenges to ERPSs adoption in Nigeria and, through the process contribute to the general body of knowledge.
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1.4 Research Objectives and Questions

Against this backdrop, the major thrust of this paper is to investigate and evaluate characteristics of ERPSs which inform consumer patronage, and through the lense of international frameworks and guidelines, identify infrastructural challenges to user acceptance. The specific objectives are as follows: 1. To describe what an electronic retail payment system is. 2. To identify electronic retail payment systems in Nigeria. 3. To assess and explore issues of Nigerian users acceptability of ERPSs 4. To highlight potential and impending infrastructural constrictions to ERPSs acceptance in Nigeria. 5. To make recommendations. The prominent research questions are: 1. What are ERPSs? 2. What types of ERPSs exist in Nigeria? 3. What ERPS characteristics drive the Nigerian consumers behaviour towards its adoption? 4. What are the infrastructural constraints to implementing efficient ERPS in Nigeria? 5. Have any arrangements been made by Nigerian stakeholders to contain these challenges? 6. What else can be done?
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1.5 Scope and Delimitation

Due to resource constraints, encompassing all important details critical to ERPSs functionality will not be feasible. However, by recognising a select, this paper aims to assist augment understanding of ERPSs in congruence with those Nigerian consumers, analysts and policy makers might be familiar with. For this reason, focus will be based mainly on electronic retail payment methods grounded on banking services such as ATMs, debit and credit cards, mobile, etc.
The term e-payment and ERPS are used interchangeably in its most liberal sense, to represent small-value monetary transactions which enable storage and expenditure for consumer goods and services, wholly or partly through electronic channels. In the ICT diction, this is better referred to as Business to Customer (B2C) and Person to Person (P2P). Emphasis is on end users, sometimes referred to as customers or consumers.
Obtaining coveted information from the Nigerian business environment was tough, particularly owing to non-availability of detailed data from government departments on e-payment transactions. It would have helped if interviews with assigned project managers were conducted, as deeper insights on preparations
and arrangements will have been attained. In addition, getting accurate data on surveyed customers education and financial status had to be approached with caution.
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1.6 Structure of Dissertation

This diagram shows briefly how the dissertation is written and organised (See figure 5). The dissertation is organised in 6 chapters following this order.
Chapter 1: Introduction
Chapter 2: Electronic Retail Payment Systems Chapter 4 & 5: Findings, Analysis and Discussions
Chapter 3: Research Methodology
Chapter 6: Conclusions and Recommendations
Chapter 7: Self-reflective Learning

Figure 5 Structure of dissertation. Source: Authors Diagram
The literature map (Figure 6) describes relationships between components of this paper.
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Figure 6 Literature Map
Source: Author Design
NIGERIA
User Acceptance of Electronic retail payment systems
Infrastructure Perspectives
Background
Definition of ERPS Theories
Characteristics
Background
Macro Economy Infrastructure Literacy Income levels Telecommunicatio ns: Electricity Banking Sector Vision 20:2020
Framework
Types
SADC
CPSS
PSDG
Nigerian context, World payment report survey
Defined based on Online and face to face application
Evaluated by Product and Channel
Diffusion of innovation, Technology Acceptance Model Theory of Reasoned Action
User related EPS characteristics
NPS Perspective: to guide findings and discussions
Surveys and Guidelines for developing Electronic retail payment systems in countries
Measurement benchmarks for certain components of the NPS perspective
Figure 7 Lite
RESEARCH QUESTIONS
ram
1 and 2 What are ERPSs and which ERPSs systems exist in Nigeria?
3. What ERPS characteristics drive the Nigerian consumers behaviours towards electronic retail payment adoption?
4. What are the infrastructural constraints to implementing efficient electronic retail payment systems in Nigeria?
5. Have any arrangements been made by Nigerian stakeholders to contain these challenges?
6. What else can be done?
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2. Electronic Retail Payment Systems

Chapter one introduced the background, problem discourse and the specific research objectives and questions. This chapter aims at building a theoretical framework for answering the research questions. It provides contributions on ERPSs and the Nigerian situation; user acceptance of technology theories and ERPS characteristicscompleted with frameworks to assess existing ERPS infrastructure. In a letter to his rival Robert Hooke, in 1676 Isaac Newton said I have seen a little further; it is by standing on the shoulder of Giants (Hawking, 2002:725). Moving from this notion, a critical review of literature follows the assumption that knowledge about a particular subject can be derived from, and built upon work carried out by others on a particular subject matter.
The objective of any literature review is thence, to establish conversance with an existing body of knowledge, and in the process, by proving credibility, demonstrate the linkage between previous research work and current study; reconciling and summarising that known, towards the propagation of new thoughts and ideas.
Several researchers have addressed issues of user acceptance of electronic retail payment systems. However, a close look reveals these have not taken a holistic view of the entire ERPSs landscape with most being one dimensional analysis. For example, most contributors have focused on specific aspects like fraud, trust, usability, ERPSs systems design and so on (ISO 9241 1996, Lee et al. 2010, Wierzbicki 2010, Efendioglu et al 2004, Abrazhevich, 2001b), others have written exclusively about payment mediums like POS, ATMs and internet (Adeoti et al 2012, Adeoti and Oshotimehin 2011, Agbasi et al 2010, Onyema, 2011, Atanda and Alimi 2012, Okafor and Ezeani 2012). In the international scene, the Nigerian context is often left out of considerations for ERPSs development. Although organisations like the CPSS and PSDG attempt
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to provide guidelines and recommendations for ERPSs entrenchment in countries worldwide, their views often times leave out country specific vectors which are crucial to the ERPS calculus.
For these reasons, the researcher has attempted to consider a wide array of contributions, to ensure a clear picture of user acceptance of ERPSs in Nigeria is presented.
2.1 Definition of ERPSs

Due to the ever evolving nature of ERPSs, there is yet to be a universally agreed definition for it (Tyree et al 2000). The researcher nonetheless, has attempted to consider a notable select, ranging from remote online based e-commerce use, to its face-to-face application.
Kalakota & Whinston (1997) describe e-payment as an exchange of digital financial instruments between buyers and sellers which take place online. Taking this further, it is also defined as payments by direct credit (Humphrey et al 2001), electronic transfer of payment card details or through other electronic channels (Agimo 2005a). As electronic money facilitates ERPSs, it can be said an ERPS is one in which monetary value as represented by a claim on the issuer is stored on an electronic device and accepted as means of payment by undertakings other than the issuer (ECB 2001:40).
2.2 Global Snapshot of Non-Cash Payments

According to the World Payment Report (2011), global volume of non-cash payments transactions grew by 5% in 2009 to 260 billion, despite macroeconomic weaknesses. It further highlights electronic payments rapid adoption in developing economies (see figure 7). Fuelled mainly by the growing use of card payments, in 2009 usage rose 22% In CEMEA while it was 8.6% for BRIC. The US and the Euro area remain by far the largest non-cash payment markets worldwide, accounting for 40% and 21% respectively in 2009.
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Figure 7 Global Non-cash Payment Report 2011
Source: WPR, 2011
Currency-in-Circulation to GDP ratio as a measure of cash dependence (Collins et al 1999), is highest in Japan at about 18% in 2010, followed by Hong Kong at 13% (Figure 8). Sweden where bills and coins make up about 3 percent of the economy (CBN news 2012) ranks least at 3.16%.
Figure 8 Key Global players Currency-In-Circulation
Source: The Economist, 2012
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2.3 The Nigerian Context

In Nigeria, traditional retail payments are centred on the use of cash in settling transactions, where a buyer sees a product, examines it and pays for it in cash (Ibrahim 2009). It would not have been a rare sight in the early 90s to observe transactions where kilograms of cash were being exchanged for goods of similar weight, carried in what are known as ghana must go bags 3. To simplify retail transactions, high value currency notes have unendingly been introduced by the CBN into the economy (Sanusi 2012), complemented by its attendant implications for cash management, security and money laundering (Lemo 2011, Adeoti and Oshotimehin 2011).
Figure 9 Nigerian cash transaction 4
Source: www.bbc.co.uk
Despite earlier attempts by commercial banks, e-payment products launched have had low adoption rates owing to various reasons. Nwokocha (2009) identified that for transactionary purposes in Nigeria, confidence in cash overshadows other forms of payment. Also the Nigerian psychology is inclined to hold and touch a payment medium like cash, ascribable to illiteracy and ignorance of e-payment benefits (Ovia, 2002). The depletion of education standards over the years had seen literacy rates plummet (CIA, 2012), recording 61% in 2011.
3 4
Not related to the country Ghana USD 1 = Naira 157; GBP 1= Naira 252 at 20.11.12
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Figure 10 World Literacy map 2011
Source: CIA Factbook 2012
As shown in figure 11, cash usage increased in 2009, reaching USD9.2bn in 2011. This same measure shows a decline in Sweden, with the US having the highest percentages overall. However, CIC per capita (Figure 12) depicts an interesting angle where cash usage in Nigeria is lower than those of Sweden and the UK. CIC to GDP ratio
8 7 6 5 4 3 2 1 0 2006 2007 2008 2009 2010
Source: Author design
Sweden United Kingdom United States Nigeria
Figure 11 CIC to GDP ratio (Data from BIS 2012, CBN 2012)
CIC per capita

3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2006 2007 2008 2009 2010
Sweden United Kingdom United States Nigeria
Figure 12 CIC per capita (Data from BIS, 2012; CBN 2012: World Bank 2012)
'000
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2.3.1 Electronic Payment Environment in Nigeria

A host of inefficiencies underlie the existing payment process. One potential reason for negative user attitudes towards ERPSs stems from Nigerias reputation for electronic fraud (David-West, 2012), where concerns of fraud-risks discourage user adoption of e-payment mediums (Olusegun 2006; Lee, 2009). Transparency international ranked Nigeria 143 least corrupt of 183 countries surveyed in 2011. More, KPMG, A global audit and financial advisory firm, in its June 2012 Africa Fraud Barometer Report, rated Nigeria as the most fraudulent country in Africa.
Figure 13 Corruption Perception Index 2011
Source: Transparency international, 2012
Internet adoption (see figure 14), although rapidly permeating public and commercial transactions since 2003 (Akintola et al 2011), diffusion rates in rural areas are considerably low (Adeyeye, 2008) counteracting the entrenchment of epayment dispersion nationwide (Anyanwu et al, 2012).
Figure 14 Internet users (per 100 people)
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While all hope is not lost, mobile cellular subscriptions have continuously increased, with geometric growth in user numbers since 2003. Active telephone lines have leaped from 51,000 in 1999 to over 90million in Q2 2012 (NBS, Nigeria 2012). These growths in subscriber numbers present an opportunity for mobile phone payment technology, particularly in rural areas where internet penetration rates remain low (EFINA, 2010; Oviosu 2012; NCC, 2008).
Figure 15 Mobile cellular subscriptions (per 100 people)
Take electricity infrastructure (see figure 16), at 121 kWh per capita in 2009 is abysmal. In comparison, the US and UK averaged 13,000 and 6000 kWh respectively in the same year. Irregular power supply contributes to underdevelopment of ICT in Nigeria (Onyema, 2011). ERPSs require a threshold level of electricity capacity to operate efficiently (SADC, 2002; BIS, 2012) as electronic information should flow to initiate and confirm transactions efficiently (discussed further in 2.5).
Figure 16 Electric power consumption (kWh per capita)
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Following banking sector reforms between 2004 and 2005 (Oyegoke, 2007), DMBs were required to increase their minimum capital base from $15m to $192m. This lead to mergers and acquisitions in the banking sector (Ayo et al 2005). DMBs reduced from 89 weak institutions to 25 sound ones (Bello, 2006; Sanusi 2011).
Banks are the primary providers of retail payment instruments in Nigeria. To ensure efficient service delivery, these recharged institutions employed ICT solutions such as POS, ATM and, Mobile banking towards growing market share (Ayo and Ukepere, 2010; Oni and Ayo, 2010; Mukherjee and Nath, 2003) with most commissioning non-interoperable softwares and hardware platforms (Chiemeke, 2008; Anyanwu et al, 2012). As a result, 80% of branches do not meet the minimum logistical requirement needed to support electronic banking as only 20% have real-time ICT interconnectivity (Nwokocha, 2009).
Non-Bank providers on the other hand, are engaged in offering targeted payment solutions like prepaid cards and payment processing networks (EFINA, 2010). The Nigerian postal services NIPOST is at the forefront, extending banking services to the unbanked as well as rural dwellers, enabled by its branch outreach (ibid). Other analysts and stakeholders have echoed the current legal framework among other infrastructural deficits, as vectors against ERPSs functionality (Bello, 2006; Oghenerukevbe, 2010; Dankwanbo 2009). Despite attempts been made by the government to contain these challenges, they still impair ERPSs adoption and operation.
In the area of supervisory and oversight functions, the Nigerian National Assembly passed laws to strengthen the CBN through the amended CBN Act 2007. In tackling corruption, money laundering and internet fraud were stressed, seeing two institutions established. The Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Related Offences Commission (ICPC).
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While Nigeria is aching for socio economic development, it would seem electricity infrastructure, legal framework and literacy considerations will frustrate the ERPS entrenchment drive, or so it seems. We now proceed to explore the types available.
2.3.2 Types and classifications of ERPSs in Nigeria

Three factors are stimulating the development of ERPSs: reducing operational and payments processing costs, growing online commerce and the decreasing costs of technology (Kalakota & Whinston, 1997). For a retail payment to occur, a mechanism and a value bearing instrument must exist (Reserve Bank of Australia, 2008). Classified based on product and operational channel features (BIS, 2012), types of electronic products for retail transactions in Nigeria can be described as follows:
A. Payment Product Classification

Card
Credit Debit Prepaid
Electronic
Direct debit Direct credit Bill Payment
Emerging Mobile phone
Table 2 Product classification
I. Card Based Products

With prevalence in urban areas, these include credit, debit and prepaid cards. Most cards are similarly sized, measured 85.60 53.98 mm, as expounded by the ISO 7810 international standard (Paul, 2006). Currently dominated by Interswitch, the Nigerian domestic card market has since 2008, had Visa and Mastercard become more active players (EFINA, 2008).
Credit cards These have a buy it and pay later feature, with the revolving credit paid partly or in full (OMahony et al, 2001). Low level of financial inclusion and the absence
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of credit scoring bureaus mean credit card use is still very low in Nigeria (Ovia, 2002).
43.
Debit cards These enable the holder to access funds in a current account with transaction value debited immediately (Chaudbury and Kuiler, 2002). Typically used for smallervalue transactions, in 2009 over 20m were issued, recording above 100m transactions (Interswitch, 2010; Ovia, 2009). It is estimated that over 50% of cards issued are inactive (EFINA, 2010). It has also been noted that Identity verification is loose for opening bank accounts in Nigeria (Nwokocka, 2009). It is important KYC procedures are thorough, to mitigate money laundering (CPSS, 2004).
Prepaid cards Stores value on cards for small-value transactions. They are usually not PIN protected and are very susceptible to fraud through theft or loss (BIS, 2004). Daily transaction limits are set low at USD133 per day (CBN 2010). Low Authorisation levels could also be a consideration affecting confidence in its adoption in Nigeria.
Figure 17 is usually displayed where cards are accepted as a means of payment.
Figure 17 Cards accepted here sign
Source: www.pebblestones.co.uk
II. Electronic Based Products

These include direct entry and Electronic Bills Presentment and Payment (EBPP). Direct entry transactions include direct credit, where through internet banking or OTC, payer initiates transactions directly from their bank account. The other, direct debit, payers pre-arranged approval allows recipient initiate payment from payers bank account. Income levels inform choice of direct entry as a payment
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choice (Kwast and kennickell, 1997; Mantel 2000), low levels of incomes as seen in Nigeria, affects is adoption amongst users. The EBPP provides means to pay utility bills, levies and so on over the Internet (Ovia, 2008). Case in point, the Electronic Tax Administration and Payment (ETAP) systems enable on-line tax returns. According to Okure (2012) awareness through education and marketing are inimical to EBPP adoption in Nigeria.
III. Emerging Options

Innovations in retail payments are constantly emerging, influencing users in their choice of payment instrument by remodelling the payment process. (Tucker 2012).
Mobile phones
Initiates and confirms payment through a mobile telecommunications device (Zika, 2005). M-payments as also referred, are expected to grow globally from 4.6 to 15.3 billion transactions between 2010 and 2013 (WPR, 2011). Its use as a payment product is growing rapidly in Nigeria where the adult population own more phones than bank accounts (Oviosu, 2012). By early 2012, the volume of mpayments increased 300% over 2008 to USD63m, reflecting the improving teledensity in Nigeria (Adeoti and Oshotimehin, 2012).
Mobile phone payments can be categorised in two ways. 1. For phone related services where data is provided through a mobile device (e.g. maps and music) 2. Payments with mobile phone as a payment device particularly in P2P transactions.
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Figure 18 Mobile phone transaction
Source: www.verifone.com
Figure 19 M-PESA transaction in Kenya
Source: www.afritorial.com
Successes have been achieved with mobile money in Africa. An example is the M-PESA offered in Kenya, which has seen financial inclusion among the unbanked population improve (Mckinsey, 2012).
B. Operational Channels Classification

Facilitate the use of a number of payment products, such as credit cards, debit cards, and direct entry products etc. through channels describes as follows. Electronic POS ATM Internet
Table 3 Channels classification Source: Author design
Over-the-counter Bank Branches
Emerging Biometrics
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I. Electronic Based Channels

Every payment product requires a payment mechanism to facilitate electronic transfer of information and funds, types typically used in Nigeria include:
POS terminals POS networks link point-of-sale terminals and allow the use of payment cards for the purchase of goods and services at several locations (Ayo et al. 2010). POS adoption is still relatively low in comparison to the rest of e-payment systems (CBN, 2009). In June 2011 about 11,000 were deployed nationwide (Obiano, 2012), however, it is estimated only 25% were active, referable to network infrastructure failure and merchants resistance to adopt, owing to high charges (EFINA, 2010). According to Adeoti and Oshotimehin (2012), fewer customers are satisfied with speed of transactions, merchants services levels and security.
Figure 20 POS Transaction
Source: www.heraldsun.com.au
ATMs
Mostly found outside banks, initiates transactions by cards, verified by a PIN (Rose, 1999). Services like cash deposits, EFT and bill payments are increasingly being offered through ATMs (Abor, 2004). ATMs use continues to grow (Adepoju and Alhassan, 2010, Ayo et al., 2010), albeit as a cash dispensing machine. In 2010, value of transactions stood at USD1.7bn representing a 99% increase above 2008 (CBN, 2011), owing to aggressive deployment and user adoption (Adeoti and Oshotimehin, 2012).
While Adeyemi (2010) contends that people spend exuberantly due to ease of cash withdrawal, others echo, access through interoperability and fraud are challenges negating ATM adoption in Nigeria (Muhammad 2009; Afam 2009).
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Some contributors stress further, the high teleco and private electricity generation costs (EFINA, 2010; Nwokocha, 2009) as well as contentedness of the citizenry with home banking remain major drivers limiting its acceptance (Uzor 2009).
Figure 21 ATM located outside bank
Source: www.wangjiashuo.com
Internet
Consumers have a choice of either transacting from an internet banking portal or through e-commerce enabled websites. Nigerian consumers are gradually adopting e-commerce, rooted on internet banking services which enable third party transactions (Ovia, 2008, Susanto and Zo 2011). However, the lack of trust and confidence informs consumers preference to be physically present during transactions (Efendioglu et al, 2004; Adeshina and Ayo, 2010; Susanto and Zo, 2011; Pan and Zinkhan, 2006).
II. Over-The-Counter (OTC)

Over-the-counter is a highly flexible channel as it facilitates nearly all types of payments products. At bank branches, customers can initiate EFTs, update personal banking records, set up direct payments plus a number of other transactions. OTC channel is often characterised by long queues, where customers waste long hours in banking halls to transact (Asaolu et al, 2011).
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III. Emerging Channels

Biometrics
Computerised identification payment channels for individuals, by analysing physical characteristics. Common types in use today include: fingerprints, voice recognition, and iris recognition (Mordini, 2012). Payment applications using biometrics are fast emerging with fingerprint authorisation leading innovations (BIS, 2012).
Figure 22 Biometric authentication
Source: www. eandt.theistt.org
Biometric authentications are well suited for relatively high-risk transaction environments like Nigeria. Ibiyemi et al (2011), opines the high levels of ATM fraud in Nigeria can be checked by the use of biometric security features while Atanda and Alimi (2012) stress integration of the national database of citizens identities as critical success factors for biometrics adoption.
With so many user negating insights identified, we shall move on to explore some theories on ICT adoption. By so doing, we hope to present how human behavioral factors influence ERPS acceptance. Noting, infrastructural deficiencies alone are not responsible for ICT non-adoption (BIS, 2012; Rogers, 1998).
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2.4 User Acceptance of Technology

Concurring with Dillon & Morris (1996), user acceptance is the demonstrable willingness within a user group to employ information technology for the tasks it is designed to support. Absent such acceptance, no technology can successfully exist on the market, with ERPSs being no exception (Abrazhevich, 2001c).
2.4.1 Technology Adoption Theories

Rogers (1983) on the diffusion of innovations, describes the adoption or acceptance of a new electronic product in line with the demographic and psychological characteristics of defined adopter groups using the Technology Adoption Life Cycle (TALC) model.
Figure 22 Diffusion of innovations
Source: Thakur, 2008 (pp 11)
Shown as a classical normal distribution curve in Figure 22, the TALC suggests that the first set of people to adopt a new technology are called innovators usually more educated, prosperous and risk oriented. This is followed by early adopters - often young and also educated. Next on the curve are the early and late majority- conservatives, older and less educated. And finally, laggards- very conservative, old and least educated (Elliot, 2006).
With low education and literacy levels in any society, ERPSs adoption might struggle to cross the chasm, a term used by Moore (1993) to describe the
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tipping point, where technology can either become entrenched or disappear from the market space due to non-adoption (Thakur, 2008) .
Numerous theories and models have been developed to explain information systems from a social psychology perspective. Researches undertaken on ICT have identified user attitudes plus human factors as notable vehicles affecting the success of information system adoption, (Rice and Adyn, 1991; BIS, 2012; Tucker, 2012). Take for instance, the Technology Acceptance Model (TAM)an individuals intention and actual use of a technology solution is influenced by its perceived usefulness and perceived ease of use, noting the later informs the former (Davis, 1989; Dillon and Morris, 1996; Tella, 2012).
Figure 23 Technology Adoption Model
TAM in summation argues, actual use is ultimately a function of a users perception of the ease and usefulness characteristics of a particular technology. Although well grounded (Marchewka, Liu and Kostiwa, 2007), the TAM does not encompass other external determinants of payment system adoption such as security, confidentiality, control, efficiency and trust (Reid and Levy, 2008; Schepers and Wetzels 2007) as it was developed to provide a basic account of the drivers of computer software acceptance in a broad-based context (Davis, 1989; Plouffe et al. 2001).
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Stressing this point, Salancik & Pfeffer (1978) with the Social Information Processing Model (SIPM), posit that external variables such as opinions, information and behaviours of others can affect a users perception and thus acceptance or rejection of technology which is more applicable in the ERPS context.
The theory of reasoned action (TRA), which has wider applications, will be more appropriate to understanding how user attitudes and beliefs can affect ERPS technology adoption decisions where exchange of money is involved.
With origins in social psychology, the TRA defines connections between beliefs, norms, attitudes, behavioural intention and actual behaviour (Fishbein & Ajzen, 1975; Hennessey, 2012).
Figure 24 Theory of Reasoned Action
Source: Abrazhevich, 2001
TRA postulates, an individuals actual behaviour is driven by behavioural intentions which are a function of an individual's attitudepositive or negative feelings about actioning a behaviour, its assessment and, desirability of resultant consequences (Liker and Sindi 1997) and subjective normsperception of whether people important to the individual think the behaviour should be performed (Terry and OLeary 2011). A limitation exists as attitudes and norms are often reframed interchangeably (Eagly and Chaiken 1993). In summation, the TRA can be enhanced with the view that user perceptions of ICT can be determined through objective characteristics of technology, alongside human factors and interaction with other concerned parties (Abrazhevich 2004).
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Going by the user emphasis of this paper, ERPS characteristics which could determine user attitudes, behaviours and intentions need to be identified, which leads us to section 2.4.1.
2.4.2 ERPS Characteristics as Determinants of User Acceptance

Earlier attempts have been made to characterise ERPSs in the works of Medvinsky and Neuman (1995), Lynch and Lindquist (1996) and Wayner (1997). These studies have focused on the technical aspects leaving out user related considerations (Abrazhevich 2001b). In congruence with the user emphasis, the researcher has identified characteristics summarised as follows:
CHARACTERISTIC
DESCRIPTION
RELATED LITERATURE
Need of users to protect their privacy,

CONFIDENTIALITY
identity and personal information against data exploitation. Extent to which ERPS instruments are
Abrazhevich,2004 Sadeghi & Schneider, 2001
ACCEPTABILITY
accepted for face to face and online transactions Systems ability to process small and
Medvinsky & Neuman, 1995 Humphrey, D. B. and Hancock, D. (1997) Low, Maxemchuk and Paul, 1994 BIS, 2012, Humphrey et al 2001
COST
micropayments, absent high transaction costs A payment system is interoperable if
Abrazhevich, 2004
INTEROPERABILITY
its use is not exclusive to a service provider. E.g. bank ATM accepts other bank customers card.
RELIABILITY
The smooth running of payment infrastructure. e.g. speed of processing Resistance of payment system to attacks in the Internet and physical
Medvinsky and Neuman, 1995 Guttmann, 2003 CPSS, 1996; Sadeghi & Schneider, 2001 Lynch and Lundquist,1996 Asokans et al., 1997
SECURITY
environment. E.g. protection of payment details from hacker assaults and PIN shield on POS Degree of customers confidence that
TRUST
Wierzbicki, 2008 Efendioglu 2005
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their money and personal information will be safe, and that all parties involved will not act against users interests when adopting ERPS in societies Ease of use and friendliness i.e. not
USABILITY
Abrazhevich, 2004
sophisticated or complex
ISO 9241, 1996 Lynch & Lundquist, 1996 BIS, 2012

Table 4 ERPS Characteristics
By investigating and ranking these characteristics, an understanding of those characteristics of high importance, which ultimately influence user acceptance and thus, adoption in retail transactions in Nigeria can be identified and cross-analysed against existing ERPS infrastructural frameworks and preparations of relevant authorities in mitigating risks to consumers. Moving on, we explore briefly, the mechanism of electronic retail payments.
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2.5 Mechanism of Electronic Retail Payment Systems

Differences exist in organisational structures across countries, however, ERPSs typically include three integrated systems (see figure 25 below): Transaction, clearing, and settlement systems (CPSS 2004).
Figure 25 Organisation of electronic retail payment systems
Source: Bank of Canada, 2003
Figure 26 illustrates the universal process of a retail payment and the direction of information and funds through the transactions, clearing and settlement systems.
Figure 26 Electronic retail payment processes.
Source: Author modified: Bank of Canada 2003
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When customers decide to pay, information about their identity, ability to pay etc. are passed en route sellers bank to buyers as shown by processes 1 and 2. Through the Automated Clearing House (ACH) in process 3, customer payment is initiated as in 4. Interbank fund settlement 5, channelled via the central bank is then initiated, completing the transaction with transfer of settlement information 6, confirming transaction with banks.
Operators and overseers of Inter-institution clearing and settlement systems need to ensure that such systems are sufficiently robust in terms of institutional and operational arrangements, risk management and settlement procedures (BIS, 2004)
Volume of Internally processed information is dependent on the level of clearing and transaction system integration (BIS 2006). Where these systems are centralised and standardised, it reduces the amount of data processing amongst participating institutions (receiving and paying), making settlement quicker and more cost effective (BIS 2008).
SWIFT, a member-owned cooperative with headquarters in Belgium is involved in the secure exchange of proprietary data while ensuring its confidentiality and integrity. Over 10,000 financial institutions and corporations in 212 countries engage SWIFT services to exchange millions of standardised financial messages (www.swift.com.). The deployment of SWIFTs infrastructure by a country is deemed as a benchmark when assessing its clearing and settlement systems (PSDG 2010).
Talking benchmarks, we shall now proceed to key out international frameworks for the measurement and assessment of a countrys ERPSs infrastructure, viewing guidelines and critical success factors recommended by authorities in the field.
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2.6 International Retail Payments System Frameworks And Guidelines

The World Bank plays an extensive role in the development of payment systems through the Financial and Private Sector Development Vice presidency (World Bank 2012). Leveraging on a network of over 150 relevant institutions in the arena of payment systems, the World Bank has engaged in supporting payment system reforms and providing bespoke advice, to name a few.
The Core Principles for Systematically Important Payment Systems (CPSIPS) suggest 10 characteristics that all SIPS should satisfy. Relevant guidelines for consumers are identified in excerpts as follows: I The system should have a well-founded legal basis under all relevant jurisdictions IX The system should have objective and publicly disclosed criteria for participation, which permit fair and open access. VIII The system should provide a means of making payments, which is practical for its users and efficient for the economy. VII The system should ensure a high degree of security and operational reliability and should have contingency arrangements for timely completion of daily processing.
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2.6.1 Payment Systems Development Group (PSDG)

The PSDG is at the centre of an international network, whose main objective is to support countries to reform payments, remittances and securities settlement systems (PSDG 2010). Figure 27 below depicts its position within the overall framework for modernising payment systems worldwide.
Figure 27 Payment System Development Group Framework
Source: World Bank, 2011.
The PSDG specifies a number of public policy objectives that need to guide the policies and actions of national authorities in countries with under-developed retail payments systems. In 2010, the document Measuring Payments Systems development presented measurement methodologies for national payment systems viz:
1. 2. 3.
Legal and regulatory Framework Retail payments system Payment systems oversight function and cooperation.
The exercise aims at furnishing a broad view of the level of development of identified components of a countries payment systems, with the intention to providing countries with tools to measure their development scored as high; medium-high; medium-low and low.
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Legal And Regulatory Framework (APPENDIX A1)
Assessing the robustness of a countrys legal framework based on two perspectives, i) The specific payment system concepts covered by existing laws ii) Legal powers of the Central Bank to oversee payment systems
Retail Payments System (APPENDIX A2)
Also based on two perspectives, evaluates the depth of payments system use, i) The deployment of infrastructure to process retail payment instruments and key policy decisions that have an impact on safety and soundness of services provided. ii) The efficiency and extensiveness of cashless payment instrument adoption and availability of a variety of payment instruments
Payment Systems Oversight Function and Co-operation (APPENDIX A3)
This indicator focuses on the enabling environment to perform oversight functions based on four aspects, i) Organisational arrangements for oversight function ii) Clarity in the objective of oversight function iii) Cooperation with other authorities iv) Cooperation with other stakeholders It is important to note, country-specific considerations due to local and environmental (e.g. physical and social) conditions are not reflected in the components measured. For this reason the author adopted the SADC scanning perspective. (Discussed further in 2.6.3)
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2.6.2 Committee on Payment and Settlement Systems (CPSS)

Formerly established in 1990 under the aegis of the Bank of International Settlement (BIS), its foundational study was of ICT matters and preparation of the Red Book intended to report settlement issues such as retail payment and electronic money issues among others (BIS 2002). In its May 2012 report Innovations in Retail Payment Systems, it identifies how individuals behavior towards technology adaptation can be explained by the following four factors:
1. The peculiarities of specific payment instruments. 2. Demographic factors: age, education, income level. 3. Transaction characteristics: transaction amount, type of goods and location. 4. Financial incentives: transaction charges, discounts and reward programmes. These factors have been considered in the design of the research questionnaires (APPENDIX B) aimed at understanding relationships between payment methods adopted by respondents in their light of these factorial characteristics.
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2.6.3 Southern African Development Community (SADC)

The SADC, an inter-governmental association of 15 southern African countries, in 1996 launched the SADC Payment System Project. This was to assist member countries define domestic payment strategies and development plans. The Guide to Developing a Strategic Framework for Payment System Modernisation, intended as a set of broad guidelines on National Payment systems (NPS) issues in the African context was published. It considered continent specific challenges such as lack of modern telecommunication infrastructure and technical know-how (Ngcobo and Herselman 2007, Zulu 2006).
Its focuses are based on a three dimensional model of NPS modernisation viz: Strategic Process, NPS Perspectives and the Support Structure as describes by Figure 28 below
Figure 28 NPS MODEL
source: SADC, 2002
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Viewed from many important angles, an existing NPS can be analysed taking into consideration the following NPS perspectives (SADC, 2002). See Table5.
PERSPECTIVE
COSIDERATION
COMMENTARY
ENVIRONMENTAL
Country demographics
Size, Population, Education and Political Stability Communication, Transportation,
Physical Infrastructure Geographic spread of commerce Economic consideration Monetary policy and credit policy consideration
Electricity Spread and link of commercial centers Needs of sectors Link between monetary policy and NPS Roles and responsibilities Business climate
ECONOMIC
INSTITUTIONAL
Stakeholder Businesses Practices and procedure
BUSINESS

LEGAL
Security Legal Framework Institutional Arrangement Risk Identification Risk Management Communications network Applications Development and Deployment of technology
Fraud, Money laundering Scope, Robustness, Deficiencies, Effects Quantified, Monitoring, Contingencies, Reporting Sophistication, Support Efficiency, Skills availability Approach
RISK
TECHNOLOGICAL
Cost of transaction processing price
Agreed pricing,
FINANCIAL
Table 5: NPS Perspective
For the purpose of this research, highlighted components of the NPS Perspectives Model are applied in a stocktaking exercise to identify infrastructural challenges facing electronic retail payment systems adoption in Nigeria; doing so will help guide research findings and thus, inform some of the analysis and recommendations of this paper.
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3. Research Methodology
Chapter two attempted to review related literature extensively. In this chapter, this papers methodological settings are described. Based on the Research Onion (Saunders et al. 2009), this chapter highlights the research purpose, philosophy, approach and strategy underlying the choice of data collection as well as the analysis techniques adopted, justifying each in the light of relevance to research.
Below is a diagram of the Research Onion.
Figure 29 The research onion
Source: Saunders et al 2008
3.1 Research Purpose

Three types of research purposes exist in business management (Saunders et al 2008) i.e. descriptive, exploratory and explanatory research. Descriptive research attempts to produce a representation of persons, events and situations (Robson 2002:59) while exploratory proposes to assess a phenomenon in a new light. Finally, explanatory research, which focuses on explaining the inter-relationship between variables of a problem (ibid).
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This paper attempts to describe consumers acceptance of ERPSs by identifying factors which explain their intentions to adopt e-payment mediums in retail transactions in the light of existing infrastructural challenges. In congruence with the thrust of this paper (section 1.3), the purpose is both descriptive and explanatory.
3.2 Pragmatism Philosophy

Acknowledging the view of Johnson and Clark (2006), it isnt merely about a research being philosophically informed, but how well a researcher reflects upon philosophical choices and defends them in relation to other adoptable alternatives. Research philosophy concerns the development and nature of knowledge through two major thought lines, each containing significant differences which shape assumptions of the world and thus, our research thought process.
The first, Ontology, concerned with the nature of reality, has two views Objectivism, depicting the perspective that social actors exist externally in reality of social phenomena, while Subjectivitism posits, social phenomena are a function of perceptions and consequential actions of social actors involved. Epistemology on the other hand pertains to constituents of acceptable knowledge in a field of study. Auguste Comet, the 19th century French philosopher, was the first to state that just as other subjects of scientific inquiry, society could be analysed empirically (William and Baiche 2001, p203). To this end, social researchers have often employed systems of methods from natural science in analysis and interpretation of social science studies, with well grounded procedures established overtime (Sun, 2010).
Since these debates are in terms of philosophy choice between Positivist - natural scientists inclined towards theory linked observable social reality (Remenyi et al. 1998:32) and Interpretivist - advocates of differences in human roles as social
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actors, affecting outcomes of social reality, the researcher believes choosing one position is impracticable simply because the most important determinants of this research are the varied research questions and one single view lacks sufficiency for all research objectives involved. Findings and recommendations of this study are based on insights sought from various perspectives in a continuum like cycle (Tashakkori and Teddlie 1998). Take for instance user acceptance, the emphasis is on quantifiable observations that lend themselves to statistical analysis (Saunders et al, 2008). While the positivist philosophy might suffice, understanding infrastructural constraints on the other hand requires both quantitative and qualitative analysis of available secondary information.
More so, this research takes a cue from the philosophy concerned with questions of existence of objects independent of knowledge called Realism. The type applicable here is Critical Realism which holds, knowledge of reality is a consequence of social conditioning (technological, economic, demographic etc.) and cannot be understood independently of social actors (consumers, regulators, banks, etc) (Dobson 2002). Even where all supporting infrastructure required were to exist for an efficient ERPS, without its acceptance and thus adoption it will prove a futile effort. Another point is the Pragmatists applicability to a multi level study as is the case in this research. By identifying roles and interrelations of the social actors (consumers, regulators and Government) and social conditions involved, the research will host a wide array of key considerations to inform research recommendations. For these reasons, the Pragmatism philosophy is most appropriate. The summary table below further highlights the researchers choice criteria to achieve a frame work for the research.
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CHOICE CRITERIA Research question orientation Multi level study consideration Internal v External Objective v Subjective General focus Observable Phenomena (data) Independence v Dependence (social factors)
Table 6 Pragmatist Philosophy
Positivist
Realism
Interpritivism
Pragmatism

External Objective Theory based Restricted Independent
External Subjective Reality based Partly open Multiple
Varied Objective Context based Partly Restricted Partly dependent
Multiple Multiple All Open Multiple
3.3 Mixed Approach

The theory adopted by a research determines its approach (Saunders et al., 2008). There are two approaches viz Inductive - building theory and Deductive testing theory, with both having unique emphasis as describe below:
Emphasis Principle Context Focus Data Researchers independence? Generalisability Approach
Table 1 Approach emphasis
Inductive Social Science Research based Data to Theory Qualitative NO NO Flexible Structure
Deductive Natural Science Between variables Theory to Data Quantitative YES YES Highly Structured
Deduction involves the development of a theory which is subjected to a controlled test, where an allowance is made for anticipating and predicting the occurrence of a phenomenon (Collis and Hussey 2003).
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According to Robson (2002), the first stage in a deductive research is to deduce a hypothesis. With regards user acceptance and thus adoption of ERPSs, the researcher argues that in addition the perceived ease of use and perceived usefulness, alongside other social influences like social beliefs and attitudes. Consumer views concerning security, trust, cost and interoperability, etc. could be responsible, noting the views of Ovia (2002) and Nwokocha (2009) in section 2.2. Hence, aspects of ERPSs which could influence user attitudes, behaviours and intent to adopt ERPS need to be identified and weighted.
A deductive approach will be applied to key out ERPS characteristics as drivers of behavioural attitude to facilitate understanding drivers of ERPSs use. Matters like the level of technological, legal and environmental infrastructure are evaluated adopting the SADC framework as critical success factors. The inductive approach is applied here for its flexibility.
3.4 Action Research Strategy

The Action Research strategy is most applicable. Unlike the case study, experiment or survey, it focuses on research in action as against about action (Coghlan and Brannick 2005). This emphasises the purpose of this research i.e. understanding user acceptance through physical infrastructure constraints militating against ERPSs adoption as a result of policy changes in Nigeria
Choice criteria
Experiment
Survey
Case Study
Action Research
Ethnography
Archival
Change Orientation Time horizon Stakeholder Involvement Iterative

Table 2 Strategy Criteria
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Other issues include the change focus and iterative cycle it affords. Data and information need be continually and cyclically evaluated as information on policy and actions are constantly updated by regulatory stakeholders.
3.5 Mixed-Model Choices

As earlier discussed, the positivist approach naturally leans towards quantitative research methods to test research hypothesis. They usually employ statistical analysis procedures and numeric data collection techniques like questionnaires. Interpretivist on the contrary, utilises descriptive analysis rooted on the use of words to present the analysis of social phenomena absent number crunching known as qualitative.
Table 9 highlights main differences.
Quantitative Numbers Static Structured Behavior Hard, reliable data

Table 3 Qualitative v Quantitative
Qualitative Words Process Unstructured Meaning Rich, deep data

Source: Developed from Bryman, Bell 2003, p302
Not only is it perfectly possible to combine approaches within the same piece of research, butit is often advantageous to do so (Saunders et. al., 2003). This noted, if it is satisfactory to combine approaches, then it can be inferred that it is acceptable to mix and match different research strategies within the different research approaches (Ray, 2007). Based on Saunders et al (2008), research choices can be segmented broadly by either mono or multiple methods.
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Figure 30 Qualitative v Quantitative
Source Saunders et al 2008
Choice criteria Mono
Source
Variant
Data collection Qualitative or Quantitative
Analysis techniques Qualitative or Quantitative
Mono
Mono Quantitative Qualitative
Quantitative Qualitative Both Both
Quantitative Qualitative Both Both

Multi Multiple Mixed5
Method Model
Table 40 Mixed-Model
The Mixed-model research choice is applied against Mixed-method as it affords a better opportunity to answer this papers multi faceted research questions. It combines quantitative and qualitative data collection methods and analysis which will assist corroborate and contextualize the research findings. For example, quantitative data on user acceptance are analysed qualitatively.
The main difference here is that although mixed method research uses both quantitative and qualitative views, quantitative data are analysed quantitatively and vice versa whereas, mixed model is interchangeable.
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3.6 Data Collection and Analysis

There are two major sources of data: Primary - observed or gathered from direct hands-on experience and Secondary - include raw and summarised primary data collected for a different purpose by someone else. It is common to combine methods to substantiate research results. The nature of this papers questions has informed the choice of data collection. For user acceptance, quantitative primary data are collected through Selfadministered questionnaires and Multiple-source secondary data for analysis of existing infrastructure in line with the philosophy, approach and strategy of this paper.
3.6.1 Self-Administered Questionnaires

Choices about types of questionnaires are broadly based on whether it is completed by respondent or by researcher on the basis of respondents answers. Self-administered questionnaires are designed so respondents can follow instructions (Robson, 2002) and answer at their own pace. The possible limitations of questionnaires are the potential of partial completion and nonresponse (Saunders et al 2008). Further justification of researchers choice are summarised below:
Self administered Cheaper More convenient Relatively easy YES Compatible Shorter
Choice criteria Cost Respondents convenience Ease of Administration Large sample size compatibility Geographic dispersion Collection time
Table 11 Questionnaire choice criteria
Interviewer-administered Expensive Not as convenient Quite complex NO Complex Takes longer

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The research questionnaires have three parts. (i) (ii) Personal information (demographics); Payment instruments preference ranking and frequency of use information (iii) Questions on each ERPS characteristic ranked on a five-point Likertstyle responses ranged from 1 very important; 2 quite important, 3 neutral, 4 quite unimportant, 5 not important at all Hypothesised drivers of user acceptance are ERPSs features which are: Relevant for user behaviour, attitudes and experience when used. Significant signifiers of ERPSs characteristics to end users. Key for ERPSs to function. Important for social influence and hence use
To ensure questionnaires cover all relevant aspects of research questions, the researcher divided the instrument into three parts mentioned earlier. The questions were steered by the guidelines contained in the innovations in e-payment report of the BIS also noted in section 2.6.2. Using various questioning styles such as, categorizing and the liker-style ranking at different sections was to ensure accuracy of responses sought. This was aimed at limiting the potential of boring the respondents with similar styled questions. Pilot runs of questionnaires with close friends also helped control quality.
3.6.2 Multiple-Source Secondary Data

The major advantage of this source of data is that it combines both documentary (e.g. memo and circulars of CBN) and survey (e.g. World Bank Global Payment Survey 2010) secondary data sources. Since qualitative and quantitative secondary data form the basis of infrastructure challenge analysis, data in forms of surveys, reports, and circulars which are available from websites of the IMF, BIS, CPSS, World Bank, and CBN, and so on, were used. With time, cost and quality
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considerations, it was impossible for the researcher to gain such insight otherwise. The main risk of using secondary data is that its original objectives might not completely fit the current research problem as it was intended for another study (Ghauri et al., 1995). To improve the quality and reliability of data sought, data types were gathered from reputable organizations with well defined
methodologies.
3.6.3 Stratified Random Sampling

A stratified random probabilistic technique enabled researcher touch a representative sample by dividing the population according to mutually exclusive homogenous subgroups (Marshall, 1999) based on IT literacy as opposed to convenience sampling technique. This is to ensure the sampling frame is accurate (Fink, 2003a) as its normal that people with good IT skills tend to adopt technology quicker (Dobson, 2006). The alternative is the cluster sampling technique where the surveyed population is based on identified clusters if they exist (Tryfos, 1996). These clusters do not exist in our population.
Due to resource constraints, the law of large numbers (Janssen 1998; Judd 1985) is not applied here because a sample of 50 respondents is targeted. By apportioning target response to 60% bank branch and 40% online, the researcher believes doing so, though based on judgment will improve statistical inference (Casella 2008).
3.6.4 Quantitative and Qualitative Data Analysis

The purpose of analysing data is to get answers by linking information from a pool of data (Yin, 2003). Using IBM SPSS v216, quantitative data collected from questionnaires and other sources were analysed using descriptive statistics such as percentages and frequencies, to summerise, identify and describe (Cameron and Trivedi 2009) relationships between variables (Agresti and Finlay, 2009). To
Software package used for statistical analysis.
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provide visual clues, graphs, tables and infographics7 were designed to aid readers comprehension.
ERPS infrastructure was analysed combining deductive and inductive approaches, applying Template analysis based on the SADC NPS perspective model. According to King (2004), a template is a list of categories which represent the themes from data that have been collected. Qualitative data on legal and retail payment frameworks were analysed deductively based on the PSDG methodology for measurement, ranking various components from low through high. The researcher after extensive findings believes this is the most applicable approach to answering research questions.
3.7 Access
Access was requested through various Nigerian internet forums where members were approached well in advance. Towards improving response rates, they were asked to indicate their interest by communicating their e-mail addresses. Because of poor internet connection in Nigeria, paper-based questionnaires were e-mailed to interested respondents. Some questionnaires were completed through branches of two busy commercial banks in Lagos Nigeria, GT Bank and Ecobank. Access to banks was negotiated leveraging of researchers professional network of contacts. To allay respondents concerns, using simple sentences, the researcher explained the purpose of the study stressing confidentiality and anonymity assuring. Secondary information is available for general public use on the internet and had been confirmed not to require any special form of authority restricting its use.
3.8 Ethical Considerations

Ethics are the norms or standards of behavior that guide moral choices about our behavior and our relationships with others (Cooper and schindler, 2008: 34). Research ethics therefore informs a researchers behavior concerning every
7
Graphic visual representations of information, data and knowledge (Ibid)
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component of a research workfrom the research topic through design, analysis and final write up (Easterby-Smith et al. 2008).
The researcher consulted wide to ascertain strict ethical standards were maintained. Appendix XV of the LJMU dissertation guide provides an exhaustive list of regulations on research conduct, which the researcher adhered to. For example by acknowledging thoughts and ideas of others through referencing and avoiding unauthorised collusion with any persons.
Other ethical considerations complied to were confidentially, controlling access to questionnaires respondents data and installing standard firewall softwares against breach. It was also appropriate to engage survey participants with courtesy, consideration and due care in accordance to the ACCAs code of ethics for members. For example, household income instead of personal was requested as well as using the phrase education above instead of highest qualification.
3.9 Credibility of Research Design

As expressed by Raimond (1993:55, cited by Saunders et al, 2008:156) How do I know? This brought to the researchers thought the concept of Bounded Rationality the idea that in decision making, an individuals rationality is constrained by information availability, cognitive capacity and time (Elster, 1983). Due to these reasons it is not known what the best research design should be. Nonetheless, the researcher has attempted to adopt a pattern which best suits the purpose of this paper. Aimed at reducing the probability of reaching the wrong conclusions, the researcher emphasised validity, reliability and generalisability as thus,
3.9.1 Validity
Validity asks questions about the proposed measure of a research and what is actually measured (Yin, 2003). The researcher ensured data relevant to research areas were specifically targeted. This explains the mixed-model choice for data
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sourcing and analysis, with both primary and secondary data utilisation. To reduce subjectivity in judgements, views of key international players in the ERPS arena were sought. The SADC scanning perspective was applied for African related considerations, assuring contextual evaluation. Validity could have been higher if interviews with members of the cash-less project team were conducted.
To reduce the probability of low validity, it was important to focus on payment systems offered by banks for its omnipresence. This is considering the low growth stage of ERPS in Nigeria. These had a direct impact on survey respondents, enabling them to fully understand and complete questionnaires. In all, the researcher believes the validity of the research design is very reasonable.
3.9.2 Reliability
The How questions here relate to the probability of the same research design yielding consistent results under similar research conditions (Easterby-Smith et al 2008:109) The researcher believes the measures of legal and payments system oversight will be consistent, because international benchmarks based on experts methodologies were adopted.
Different interpretations may yet be given to other infrastructural considerations. For example, taking a cue from the management expert Handy (1993), who opines that how things are done amongst a select persons is relative to the collection of thoughts and ideas they hold. In the payments landscape, every nation has a business culture which informs the way transactions are conducted and in summation, what might be good for the goose might not suffice for the gander (old English saying).
All the same, the researcher, through extensive research has attempted to ensure the research design is reliable, especially with the questionnaire analysis. Paying particular attention to data inputting helped reduced errors, whilst maintaining an independent position cut down bias in survey analysis.
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3.9.3 Generalisability
Also referred to as external validity, is concerned with How findings may be applicable or super imposed on other research settings. As earlier noted, payment procedures vary in countries. The design approach used in the infrastructure analysis of retail ERPS in Nigeria will be applicable to developing nations, especially members of the African community who witness similar infrastructural challenges. Survey questions on the other hand might not be as generalisable, owing to its tailored design for the Nigerian setting.
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4&5 Findings, Analysis and Discussions

The previous chapter, research methodology, set the sail and boundaries for research findings. This section presents empirical data and analysis as follow: (4) A descriptive analysis of survey results to characterise data collected and (5) A report on ERPS related Infrastructure.
4. User Survey Of ERPSs

The survey attempted to identify user perceptions of various characteristics of ERPSs as drivers for decisions to use them or otherwise. It has to be acknowledged however, that the evaluation, although informative, is only an abridged version of the entire picture of ERPS adoption in Nigeria. This is mainly because the survey does not include the circumstances in which transactions are made. Payments initiated through any channel would have unique and specific conditions influencing an individuals beliefs, attitudes, intentions and actual behaviour to adopt a payment technology as noted by Fishbein & Ajzen (1975) and Hennessey (2012).
This section answers research question 2, i.e. what ERPS characteristics drive the Nigerian consumers behaviour towards adoption.
4.1 Demographics And Descriptive Statistics

Of the 50 questionnaires received, 4 were rejected due to inconsistencies in respondents answers. 73.9% had used e-payments before and 45.7% use ERPS at least twice a week. Demographically, respondents were quite balanced with 52.2% female. Survey participants between 18 and 55 make up 78% of sample, representing the current active age structure in Nigeria. Most online respondents
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were graduates, constituting the highest number of survey population. 47.8% of respondents were employed, with the rest being mainly self employed and students. In the Innovations in Retail Payment Systems report of the CPSS (2.6.2), it identifies how individuals behavior towards technology adaptation can be explained by demographic factors such as age, education and income level. Here we cross analyse these factors with research findings to identify adoption trends.
4.1.1 Age
Participants between 18 and 45, who might be considered more ICT savvy, represent 56%.
Figure 31 Age demographics
Although respondents from every age group have used ERPSs, findings seem to affirm the TALC (Section 2.4) where Rogers (1983), submits the innovators and
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early adopters who embrace ICT more quickly are usually young and educated. Here, 92% of respondents aged 18 to 45 have used ERPS. This notion is further stressed by the frequency of weekly use where the same age groups use ERPSs many times a week.
4.1.2 Education
Respondents were asked to indicate their highest education level as junior, senior secondary, graduate and post graduate levels. 41.3% of respondents were senior secondary. However, 54.5% are graduate level and above.
Figure 32 Education demographics
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Looking at education and frequency of weekly use, it is not so hitting education has a causal relationship with ERPS use. However, graduates surveyed tend to use ERPS many times a week.
4.1.3 Income And Employment

76.1% of respondents are engaged in one form of employment or the other. On the income side, 45.8% of females have monthly house hold incomes above N100k ($630; GBP 393), same for 68% of male.
Figure 33 Income and employment demographics
Reverting to the TALCs perspective, individuals with higher income and better employment status are more inclined to ERPS adoption, especially use of direct
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debits for payee initiated payments as noted by Kwast and kennickell, (1997) and Mantel (2000). From figure 33 however, cash remains the most preferred payment medium across all income and employment levels. Most prominent is that all self employed respondents use cash. This is probably as a result of the cash dependent nature of the informal economy in Nigeria. Now that we have analysed demographic trends affecting ERPS adoption, it is clear age and, partially education have a holding on ERPS adoption In Nigeria. Income and employment nonetheless do not. The following section evaluates survey opinions of ERPSs characteristics as determinants of user acceptance.
4.2 User Perceptions of ERPSs Characteristics

This section of the survey is based on the TRA (2.4), which identifies that a users actual behavior to adopt a technology or otherwise, is a function of positive or negative feelings perceived about the desirability of resultant consequences. Since the TRA infers that ICT features alongside interactions with other concerned parties can serve as an indication for ERPSs adoption, opinions of respondents were assessed with liker-style questions ranging from 1 very important; 2 quite important, 3 neutral, 4 quite unimportant and 5 not important at all. Notions on personal decisions on selected features were sought from Yes, Maybe and Never responses.
Figure 30, Survey Highlights, provides a snapshot of key results from the conducted survey. Not surprisingly Security ranked highest with 100% saying it was Very Important. Another characteristic of importance was Trust, where in line with the Social Information Processing Model (SIPM) (Salancik & Pfeffer 1978), 80% maintained they would rely on opinion of others to use ERPS in retail transactions. Cost also scored high. 80% of respondents said they will avoid ERPS use if charges were too high.
Reliability (the smooth running of payment infrastructure) also ranked 72% very important. 60% of respondents indicate they would avoid ERPSs where absent.
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This is a very important characteristic for users. The head of the NIBSS, Mr. Adebisi Shonubi specifically identified GPRS network downtime as a major hurdle for POS entrenchment (Punch Newspaper 2012).
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Figure 34 Survey Highlight
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Interestingly, being rewarded for using ERPSs as recommended by the CPSS ranked low on the order (60% Unimportant). This could be as a result of the high natured caliber of survey respondents. This however might imply the educated and financially advantaged Nigerian ERPS users are not prepared to be wooed by incentive schemes which encourage its use. It is logical nonetheless, that economically deprived members of the Nigerian community will welcome such incentives.
Interoperability and Acceptability which rank below 70% quite important are areas which users take seriously. As awareness and deployment of ERPS instruments begin to improve, these are bound to become key areas of concern to paying parties. Regulators should ensure paying systems are interconnected and interoperable.
Figure 35 Interoperability and Acceptability
All the more, respondents with secondary school education level and higher as well as all age groups do consider reliability (efficiency in payment infrastructure) as very important. Where payment instruments are not believed to be functional, 60% of users indicate they will avoid use of electronic payments. In closing, the low level of awareness of ERPSs functionality was highlighted by the fact that 54% of respondents were not mindful their personal details were stored by merchants and banks. Further, Confidentiality was 65% unimportant; this might be a pointer as to users naivety of electronic fraud. Personal details are now traded in black markets on the internet. It is important extensive awareness of
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fraud risks are communicated by the regulators. Without such drives, there exists a risk to squander the already marred level of trust in the Nigerian business climate.
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5. NPS Stocktaking Report

Through a stocktaking of ERPS related infrastructure in Nigeria, question 3, what are infrastructural constraints to implementing efficient ERPSs for retail transactions will be answered. As part of this section also, answering the what has been done by Nigerian stakeholders question is summarily addressed. By identifying infrastructure constraints, implications for user acceptance will be better understood.
This stocktaking procedure involves information collection about the present state of ERPS related infrastructure in Nigeria, benchmarked selectively against Sweden. The NPS perspective model (section 2.6.3) guides information gathering. A diagnosis of the strengths, weaknesses, opportunities and threats8 (SWOT) of the current NPS is then undertaken.
5.1 Introduction
According to the BIS (2002) Retail payment systems and instruments are significant contributors to the broader effectiveness and constancy of the financial system, in particular to user assurance and to the functionality of mercantilism. Moreover, efficient and safe use of ERPS as a channel of exchange in transactions is an essential function of the medium and a foundation of the trust held in it by people. For these reasons, the efficiency and safety of retail payments are of interest to all stakeholders involved.
An efficient and modern payment system is mutually related with economic growth, which is a fundamental facilitator for economic development. According to the CBN (2011), the Cash-less strategy was introduced for a variety of notable reasons, including: driving development and modernisation of the NPS in line with Nigerias vision 2020 goal of being amongst the top twenty economies of the world by the year 2020. And also to abbreviate the expense of banking
8
A structured management tool to summerise Strengths, Weaknesses, Opportunities and Threats of a person, place or situation (Humphrey, 2005)
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related services (including credit considerations) and push forth
financial
inclusion by making available more effective payment options and extensive reach. Assortments of gains are anticipated to be derived by various stakeholders from the entrenchment of ERPSs. For consumers, these have as part: increased
convenience; more service options; cheaper access to banking services (absent branch presence) reduced risk of cash-related crimes; and access to credit. For businesses, it promises: reduced revenue leakage; faster access to finance; and reduced cash management costs. The Government is also considered through improved tax revenue; extensive financial inclusion; and ultimately increased economic development. A countrys payment system acts as a catalyst for the flow of financial resources (Gholami et.al, 2010; IFC, 2011). This can be enhanced with Joseph Schumpeters (1934) observation that we see all around us in real life, faulty ropes as against steel hawsers. In His Theory of Economic Development he identified how economic logic prevails over the technological, relevant today in emerging economies as clumsy money economies in lieu of efficient electronic payment structures.
Sadeghi & Schneider (2001) identify that the modernisation process of a NPS presents a major challenge to policy makers and specialists alike, as it involves tasks ranging from major strategic plans, new legislation, unified standards, plus development of new technology among others. Its also been noted, many emerging economies lack the threshold infrastructure and banking sophistication to leapfrog from basic, to state of the art payment systems (Listfield and Montes-Negret, 1994). To this end, it is prescribed, modernisation projects should first, fix key problems such as education, awareness and technological infrastructure etc. This should be followed by incremental updating of the current system to meet basic standards of timeliness,
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reliability and security after which long term advancements can be considered (BIS 2006). While most contributors, commentators and stakeholders in Nigeria and the international community unanimously welcome the innovation of a modern electronic payment arrangement, there are major concerns about the degree of planning and implementation (Asaolu et al. 2011) and ultimately the level of physical infrastructure available to support the Cash-less Nigeria drive. We shall continue to examine existing infrastructure and institutional arrangements, beginning with environmental considerations.
5.2 Environmental
This perspective describes the environment within which retail payment systems are provided. It highlights the needs to be met and also sets the stage for identifying constraints.
5.2.1 Country Demographics

This component evaluates the characteristics of a country and its population.
923,768 km2 162,471,000 50% total population
Size Population Urban Population
0-14 years: 40.9% Male 32m ;Female 31m Age structure 15-64 years: 55.9% Male 44m;Female 43m 65 years and over: 3.1% Male 2m;Female 3m Literacy Unemployment Political Stability Table 12 Country demographics 68% 21% High-risk Source: World Bank, 2012: CIA, 2012; NPC, 2012
Officially called the Federal Republic of Nigeria, the country is modelled around USA, and so, governed by a federal system of administration with 36 States, a
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Federal Capital Territory (FCT) and 774 local government areas. The capital city is Abuja. Nigeria is strategically located on 923,768 km2 of land area in West Africa. Nigeria is a culturally diverse nation constituting three ethnolinguistic groups Ibo, Hausa and Yoruba, represented by over 250 ethnic classifications, often with differentiated languages. Although the official language is English, according to the Nigerian Bureau of Statistics literacy survey (2010), only 57.9% and 71.6% of the population are literate in English and other languages respectively. This consideration might have a holding on usability (non-complexity in use) characteristics of payment systems design, bearing in mind 60% of survey respondents maintain they will avoid ERPS if complicated. Further, Nigeria is a country of very religious people who are in the authors opinion frequently biased along religious ideologies. For example, the introduction of Islamic banking in 2010 saw some members of the Christian community averre marginalisation (BBC world service, 2010). This phenomenon could impair user acceptance of ERPSs because the Hausa Muslims of the North predominantly education disadvantaged (NBS, 2010), might perceive the Cashless policy to be against their religious interest.
As earlier noted, the country is still very fragile, which means political stability is ranked high-risk by the CIA. The Nigerian political environment has witnessed abrupt changes over time. When succeeding administrations assume office, there has always been a trend of scrapping earlier initiatives, with new ones started afresh. The implication for a NPS overhaul is such that regulators and governments need to be committed to a policy change to sustain buy-in from users and stakeholders alike. This is important for ERPS crossing the chasm (Moore, 1999). With a rapidly growing population, it is estimated by the World Bank that younger citizens constitute a large proportion of the Nigerian population. As
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survey results highlight these young people adopt ERPS quicker and more often, an advantage presents for user acceptance nationwide.
5.2.2 Physical Infrastructure

This considers the stock of basic facilities and capital equipment needed for the functioning of a modern retail payment system initiative. CPSIPS VIII implies that retail payments require a reliable underlying financial, communications and other types of infrastructure. To reduce risks of loss to paying parties, it is also important a national identification system for individuals exist. Communication
GSM Subscribers as at Sep, 2012 CDMA Fixed/Landline Population covered by mobile cellular network Internet users International Internet bandwidth (Mbps) Broadband download speed (mbps) Fixed broadband Internet subscribers
Table 13 Communication facts
103,653,380 3,239,370 474,345 80% 24, 895,584 693.0 2.30 67,776
Source: NCC, 2012; World Bank 2012; ITU, 2012
ICT is one of, if not the fundamental catalysts for new or improved payment services and, resultantly, the new business models which usher innovations in to the market. Since the telecommunication reforms in 2001, the numbers of active subscribers have constantly been on the increase. As can be deduced from table 13 above, it is obvious there is an advantage for retail payment particularly for P2P transactions.
Globally, the speedy development in ICT has contributed to retail payments spread over the past decade, for example, the introduction of new payment methods aimed particularly at e-business and online P2P transactions. The level of awareness of the internet benefits has also improved with over 24 million
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Nigerian users in 2011. This growing awareness creates an enabling environment for e-commerce and other related payment platforms. Although it has to be mentioned, the cost of fixed broad band internet is considerable high and the download speeds still slow. These will certainly have consequences for the speed of POS medium.
In Nigeria, deeper penetration of mobile phones and smartphones, together with the reducing costs of associated infrastructure has the potential to turn mobile phones into new payment channels both for executing traditional payments (e.g. credit transfers) and for entirely new payment schemes.
Electricity
Unit
Installed power generation capacity Power consumption Power outages Firms reliance on own generator Urban access to electricity Rural access to electricity Growth access to electricity
Table 14 Electricity facts
MW/million people kWh/capita Day/year % % population % population % population/year
38.1 121.6 320.0 61.0 85.0 31.0 0.6
Source: Derived from AICD electricity database
According to the International Bank for Reconstruction and Development (IBRD), the Doing Business in Nigeria report (2012), shows Nigeria stands at 176 in the ranking of 183 economies on the ease of getting electricity. Nigerian businesses biggest reported problem is unreliable power supply. About 83 percent of all managers surveyed considered electricity outages to be a serious problemmore than any other constraint. Firms of all sizes, traversing states and sectors, report average power outages equivalent to 8 hours per day.
As a result, the percentage of Nigerian firms owning their own backup generators is 61 percent. No comparator country experiences such severe business losses
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related to the power supply. From table 14, it is glaring ERPSs will suffer as a result of such harsh electricity conditions. Taking cognisance of Nigerias power challenges, Dr Tunde Lemo, Deputy Governor in charge of operations, CBN, mentioned in a newspaper interview that the POS machines designed for the Cash-less initiative have specifications peculiar to Nigeria. Saying, All POS terminals will have a minimum battery life span of 24 hours, while many will do 48 hours with no charge. They also come with backup batteries and car chargers as appropriate to address the power challenge. Transportation
Unit Paved road density Unpaved road density Paved road traffic Paved network condition Unpaved network condition Perceived transport quality km/1000 km2 of arable land km/1000 km2 of arable land Average annual daily traffic % in good or fair condition % in good or fair condition % firms identifying roads as major business constraint
Table 15 Transportation facts
174.1 94.2 1,772.4 67.4 32.9 29.9
Source: Derived from the AICD national database
Transportation infrastructure like electricity is also appalling; users need to get around efficiently when engaging in business transactions. Although most measures contained in table 15 concern roads, the Nigerian rail network and aviation sector also require urgent attention. In addition, maintenance and
management of ERPS infrastructure requires technicians and engineers are able to attend to systems failure and interruptions at the earliest possible time. Without efficient transportation infrastructure, the reliability of payment systems might be unattainable.
ERPSs are increasingly being used by transportation agencies for the collection of highway tolls, journey fares (e.g. Oyster cards in London) and parking fees. This
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presents an opportunity for entrenchment of ERPSs in Nigeria. The BRT9 transportation system in Lagos State has the appropriate structure to host journey fare payment technology very effectively using Near Field Communication technology (Discussed further in recommendations, 6)
5.3 Institutional
Institutional perspectives aims at identifying the players engaged in a NPS modernisation project, highlighting their roles and responsibilities. CPSIPS VII implies that retail payment systems should be supported by appropriate governance and risk management practices.
5.3.1 FGN
Through the payment system vision 20:20, the FGN is committed to entrenching ERPS use nationwide. The responsibilities of the government towards creating an enabling environment for electronic ERPSs are enormous. These include ensuring relevant physical infrastructure are in place, through the National Assembly amend and provide appropriate legislation as well as enforcement of rights of participating parties in retail transactions to name a few.
With regards electricity, the vertical and horizontal unbundling of the state controlled Electricity Company into 18 subsidiaries now sees private sector engagement in power generation, transmission and distribution. Although dividends have yet to accrue, electricity conditions are set to improve in the coming years. Electricity generation at this time has peaked 4300 from 2300 mega watts in 2008 (Nnaji, 2012). The Payments System Management Bill and Financial System Ombudsman Bill are before the National Assembly for enactment. Evidence Act is also undergoing review (CBN, 2012). Also, the Nigeria Identity Management Commission
The Lagos Bus Rapid Transit System is a bus rapid transit system in Lagos State, Nigeria (Wikipedia, 2012).
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(NIMC) is presently implementing unique bank customers identifiers within the scope of the on-going National Identity Number project (NIMC, 2010).
5.3.2 CBN
The CBN is responsible for overall control and administration of the governments monetary and financial sector policies as provided by the CBN Act of 2007.
Excerpts of Section 47: Payment and Settlement Systems of the CBN Act are described hereunder,
(2).The Bank shall continue to promote and facilitate the development of efficient and effective systems for the settlement of transactions (including the development of ERPS). Appointment of other Bank as agents for payment and settlement systems (3). The Bank shall have power to prescribe rules and regulations for the efficient Operation of all clearing and settlement systems. (4).In furtherance of the objective of a sound financial system and notwithstanding the provisions of the Evidence Act, any physical or electronic record of transactions that is in a format approved by the Bank shall constitute sufficient proof of such transactions
Implementing the retail payments system development agenda requires public authorities, in particular the central bank, to take an active role in coordinating and catalysing action from all the stakeholders. Besides the provision of the CBN Act 2007, CPSIPS IX (2.6.2) lays emphasis on fostering a competitive market environment within the retail payment industry, balanced between cooperation and competition.
The CBN has issued a policy circular to pattern the proper level of interoperability of POS and ATM infrastructure. With 45% of survey respondents in favour of debit cards for POS transactions, this could improve
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ERPS adoption. Problems with standard settings might persist, as 4 manufacturers have been selected for the provision of POS terminals.
Further, CBN mobile payment guidelines do not permit Mobile Network Operators to offer mobile money services, either independently or as lead syndicate partners. Market competition or contestability is the main route to maintaining efficiency in dynamic retail payments markets (BIS, 2003); these decisions among other reasons potentially restrict competition in the industry. The main implication here is that the M-PESA model earlier described cannot be implemented in Nigeria.
5.3.3 DMB
DMBs are appointed by the CBN as agents for payment and settlement systems in Nigeria. These Banks are the principal providers of accounts, instruments and services directly to end users (BIS, 2002). The provision of payment cards and internet banking portals form some of their complementary services to customers. They are also responsible for issuing POS terminals to business clients.
Branches however are in short supply with a ratio of 23000:1; this is a major hurdle for the Cash-less initiative. Low Interconnectivity of branches will also reduce the speed of EFTs. Those most affected by this are rural inhabitants where transfer incomes from contacts employed in cities are commonplace. Recently, however, non-banks have begun to provide certain retail payment services to augment the banks provisions even though their market shares are still low.
No of DMBs No of Branches Banking density Bank ratio Branch Interconnectivity
Table 16 DMB facts
24 3190 63% 23000:1 30%

Source: Nigerian Banks financial transparency report, 2011
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5.3.4 Non-Banks
As Noted by the BIS (2012), the role of non-banks in retail payment innovations has increased significantly, owing in part to the growing use of innovative technology that allows non-banks to compete in areas such as mobile and internet payments which are not yet dominated by banks. Non-bank payment providers are set to play an increasingly important part of the Nigerian payments landscape in coming years, especially in rural areas. Further, the growing function as consolidators (intermediaries between payers, payee and their account holding banks) and payment portals providers in EBPP arrangements and internet shopping, of payment acquirers in ATM and debit card networks shorten the line between the direct provision of retail payment services to end users than in the past. Non-banks are also involved in provision of crossborder instruments, provision of payment security services as well as providing outsourcing services such as processing, accounting, the operation of data centres and the operation of ATM and POS terminals (BIS, 2012; Tucker, 2012). Towards the Cash-less initiative, the Nigerian postal services, NIPOST developed a strategic alliance with NETPOST10 to modernise connectivity between post office branches nationwide to cater for users, especially rural dwellers. According to a Universal Postal Union (UPU) study, postal operators provide some 1.5 billion people worldwide with access to basic financial services such as payments, money transfers, and savings.
With only 3955 branches, a national coverage of 20% would not seem to achieve much considering the Nigerian population. The UPU recommends 1 post office for an average of 6000 persons. In line with this recommendation, Nigeria should have at least 27,000 postal outlets. Postal establishments in Nigeria consist of General Post Offices, Head Post offices, Departmental Post Offices, Sub-Post Offices, Postal Agencies and mobile Post Offices.
10
"NETPOST is a joint venture between NIPOST and two privates sector firms in Nigeria
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Another weakness is the negative effect for e-shopping, the non- availability of a robust national mail system increases the cost of delivering items purchased online. As a consequence, the growth of e-commerce might be affected. Besides e-commerce, user monthly bills and other electronic retail payment
correspondence which are statutory requirements to improve trust and accountability cannot be delivered effectively. Alternative arrangements should be set in motion in this regard, towards user protection.
More, in the desire to extend banking services to a wider segment of Nigerians, 14 Mobile payment service providers were licensed in 2011. With the ubiquity and increasing acceptability of mobile telephony, financial inclusion of the unbanked seems possible. M-payment mediums facilitate instant payments to end users, allowing settlement of scheme providers in a T+1 cycle; meaning PSPs funds are settled on the second working day.
Minimum m-payment technology standards are also specified by the CBN to ensure users confidentiality, security, and reliability to name a few. It is important, however, that KYC11 procedures are appropriate for each user class to reduce fraud-risks and money laundering.
Figure 36 Non-Banks and trust
11
Know your client
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An important user consideration for non-bank service providers is trust. Survey analysis revealed most respondents who believe opinion of others on security is very important and have used ERPSs in transactions assert that they might trust non-banks. It is essential that this trust once earned should be guarded, if non-bank payment services are to diffuse across-the-board of users.
5.3.5 Telecommunications Networks

The Telcos are responsible for providing a secure communication path based on the technological standards stipulated by the CBN. Agreements have been reached between the CBN and Telco networks to provide dedicated channels for payment related data traffic. This is to improve uptime and interconnectivity of payment infrastructure.
As earlier mentioned Mobile Network Operators are not permitted to offer mobile money services, either independently or as lead syndicate partners. Established Networks have the capacity to provide a strong platform for innovations, but are often also favourably positioned to create entry barriers which hinder competition and innovation (BIS, 2012). These entry barriers could be either direct imposition of access restrictions or through other indirect means, take for example by adopting standards and principles that are difficult or costly for other innovative payment options to take on (BIS,2003). While the precise reason(s) for the CBNs decision is not known, it might be to foster competitiveness within the electronic retail payment industry, by allowing the market grow unhindered, absent dominance by established players.
5.3.6 Switching Companies

Switching companies facilitate confidential exchange of proprietary data and standardised financial messages among paying parties in Nigeria. There are currently 9 licensed switching companies with the NIBSS serving as a central aggregator for all electronic transactions. Transaction switching companies
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facilitate the processing of online ATM transactions, online POS transactions and e-purse transactions. In doing this, they interconnect parties to card scheme operators' network, document transactions and generate reports to member banks including transactions settlement reports, amongst other activities (CBN, 2012).
As identified from the World Bank Global Payment System Survey 2010, 90% of Nigerian banks are connected to the SWIFT infrastructure, which improves crossborder payments.
It is mentioned by the BIS (2012) that a degree of cooperation is crucial among market players in certain infrastructure arrangements particularly those executing payment clearing and settlement (as identified in section 2.5 mechanism of ERPSs), where certain features of a public service nature are provided. The consequence for users here is whether this cooperation translates into advances in overall market efficiency and safety in the ever complex and dynamic ERPS markets.
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5.4 Legal And Oversight Landscape

This perspective translates the legal context in which the NPS operates. CPSIPS I stresses retail payment systems should be supported by a sound, predictable and proportionate legal and regulatory framework. It also recommends to relevant regulatory authorities the need to exercise effective oversight over retail payment markets and to consider proactive interventions where appropriate.
Irrespective of the particular technical or institutional features of ERPSs, complex contractual and legal relationships exist between consumers, retailers, issuers and service operators. With this noted, the legal framework specifies the rights and obligations of engaged parties and institutions of a retail payment arrangement. A key consideration is whether these rights and obligations considered are well defined and transparent. The issue here is primarily concerned with the effect of legal and regulatory provisions on retail ERPS and instruments, noting legal provisions often lag in keeping up with market development, complemented by various damaging effectsespecially for competition, innovation and ultimately user protection.
Such negative uncertainnesses impair efficiency as well as infix legal risk, not least because a users notion perceives an ERPS as legally unsound can have a holding on user trust and thus, acceptance. Say for example issues could come up involving liability in the event of fraud, or the default by one or more participating parties. The question arises as to what extent existing laws and central bank regulations apply to electronic transactions.
In the oversight arena, regulatory activities can also stifle market development and innovation through reduced competition. It is important for central banks to ensure there is a well managed balance between oversight and enablement of a competitive retail payments environment in the interest of end users. Many actions often have well grounded rationales, however, differentiations in legal provisions for banks and non-banks can impose differential costs and risk profiles,
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distorting user incentives to adopt a particular ERPS instrument i.e. whether instruments available represent the least cost and risk profile to intending users.
The Nigerian legal and oversight framework is assessed by the PSDGs methodology for measuring payment systems development and benchmarked against Sweden as earlier mentioned (APPENDIX A1&A3).
NIGERIA SWEDEN
Legal Framework
1. Key legal concepts covered by the existing legal framework 2.Central Bank Legal Powers to Oversee Payment Systems
LEVEL OF DEVELOPMENT
2 2 Medium-low
8 2 High
Oversight Scoring
1. Organizational Arrangements for Payment System Oversight 2. Objectives of Payment System Oversight 3. Cooperation with other relevant Authorities 4. Cooperation with other stakeholders 5. Scope of payment system oversight
LEVEL OF DEVELOPMENT
6 2 1 2 1 High Source: Author design
6 2 2 2 4 High
Table 17 Legal and oversight scoring
Results (table 17) show the legal framework is scored medium-low and high for Sweden. Although noted previously that certain laws are being reviewed by the Nigerian National Assembly, investigations reveal electronic evidence is not admissible in Nigerian courts, the laws do not provide consumer protection for retail payment services, no competition laws exists to provide fair and contestable retail payment markets, and finally no payment system specific laws are yet in place.
Whilst S.47(3) of the CBN Act provides that the Bank shall have power to prescribe rules and regulations for the efficient operation of all clearing and settlement systems, an impending risk exists, as contractual and legal relationships are not expressly defined with consumers being most disadvantaged.
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On the oversight spectrum, a High score is attained. Although favourable, attention needs to be paid to the scope of payment system oversight. This might not be an issue now; however, it does have implications for the efficiency of the payment landscape in the long run. We go on to explore the technological infrastructure.
5.5 Technological
This defines the technological infrastructures that support the payment system. CPSIPS VIII implies that retail payments require a reliable underlying communications infrastructure
In section 4.2.2, we explored communications infrastructure from the users-end. Here we look at the supporting infrastructure on which payment services are established.
5.5.1 Infrastructure and Application

i) NIGCOMSAT-1R Nigerian communication satellite successfully launched, orbited and tested in December 2011 to provide a robust ICT infrastructure.
ii) GLOBACOM-1 Is a 9800km submarine communications cable system between Nigeria and the UK. It became operational in 2011 with a minimum capacity of 640 Gbit/s, now advertised as 2.5Tbit/s. This initiative was launched by Globacom Telecommunications and Main One Cable Companyboth private companiesto provide 99.9% reliability and high speed data connectivity.
iii) GALAXY BACKBONE Is an ISO IEC 27001:2005 certified data security infrastructure owned by the FGN. It assures security of public data and information.
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While the stock of teleco infrastructure might seem impressive, a good a structure is only as good as those who manage it. Africa remains at an early stage of ICT development as affirmed by the ICT Development Index (IDI) 2010. Technical knowledge and man power remain very scarce and expensive in Nigeria and if the industry were to attract, reward and retain necessitated skills internationally, the current risky political climate might serve as a deterrent.
In addition, the underwater cable system, even where at optimum performance, lacks a National Transmission Backbone to transmit digital links to sub-regional and regional carriers in the hinterlands for end-user consumption.
Approaches of these technologies though commendable, will take time for full optimisation and until then, users will continue to suffer slow payments and downtimes with detrimental implications for trust and reliability.
5.5.2 Development and Deployment of Technology

This section is also assessed by the PSDGs methodology (APPENDIX A2).
NIGERIA
SWEDEN
Infrastructure and Policy
1. Deployment of POS infrastructure 2. Interoperability of Infrastructure

Extensiveness and Inherent Efficiency of Retail Payment Instruments Used
0 -2
4 0
1. Extensiveness of usage of cashless instruments 2. Efficiency of payment instruments used

LEVEL OF DEVELOPMENT Table 18 development and deployment scoring
1 0
4 4 High
low
Findings here seem to say it all about development and deployment of technology (Table 18). And for this reason, the researcher proceeds to identify actions of
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regulators towards mitigating identified deficiencies. Contained in this section are excerpts of newspaper interviews and articles from relevant stakeholders.
Head, Shared Services at the CBN, Mr Chidi Umeano was quoted as saying: "Banks have continued to roll out more innovative electronic payment platforms to meet customers expectations. Currently, banks have deployed about 100,000 POS terminals and before the end of the year, if things go as planned, about 150,000 POS terminals will have been deployed. He added, The aim is to penetrate Urban and semi urban areas with mass market appeal while communicating in local languages, create and generate excitements for everyone to embrace cashless transactions, stimulate interests and intent to embrace e-banking and raise awareness at the grass roots level for the new policy Umeano further added The CBN was set to acquire a new fraud prevention system, payments system oversight and anti-fraud system, to tackle fraud in the electronic payment (e-payment) system (Source: www.thisdayonline.com, 11.June. 2012) Meanwhile, the Association of Corporate Affairs Managers of Banks (ACAMB) has urged merchants, traders, supermarket operators, and filling station owners to hurry to their banks and collect POS terminals to facilitate e-payments nationwide. It assured bank customers and other related parties to avail themselves of the friendly environment Nigerian banks have provided to promote businesses and personal banking experience. ACAMBs President, Tunde Shofowora said. (Source: www.vanguardngr.com, 12.June. 2012)
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At a stakeholder roundtable conference in Lagos, Omokehinde Ojomuyide, Country Manager, West Africa, MasterCard Worldwide MasterCard envisions a world beyond cash, a goal that mirrors the Cashless Policy conceptualized by the CBN, We support this policy that aims to modernise the countrys payment systems More Nigerian businesses are accepting MasterCard payment cards than ever before, and we acknowledge the support of the countrys financial institutions who have committed to educating their customers about the security and convenience of accepting cashless payments, says Ojomuyide. MasterCard will continue to create an environment for discussions with financial institutions and merchants at our regular training workshops. (Source: www.vanguardngr.com, 19.October. 2012) In addition, 14 Mobile payment operators earlier mentioned have recorded 35,971 transactions valued at $1.4m in January 2012. Nigerian analysts expect this to grow as awareness increase. However, a MasterCard Mobile Payment Readiness Index (MPRI) reveals otherwise, scoring Nigeria 31.3 which is said to be below world averages. The MPRI identifies Canada, Singapore, USA and Kenya as better prepared. It says Singapore has the highest score at 45.0 (Source: www.Punchng.com, 4.June. 2012) From these views, it is apparent stakeholders are committed to the Cash-less policys success; however, infrastructural bottlenecks identified thus far, remain major hurdles. From this point we shall proceed to analyse the Business and Finance perspectives.
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5.6 Business Environment

This perspective considers current and future business trends in ERPSs. CPSIPS VII connotes retail payment markets should be transparent, have adequate protection for paying parties interests and be cost effective.
The importance of creating an enabling competitive environment cannot be over emphasised. To guarantee consumers get sufficient, relevant and appropriate value for money, competitive forces have to be in place. The CBN has the power to licence PSPs through its oversight functions, albeit, it is important barriers to entry and thus innovation, among other standards are set to protect interests of paying parties. One other issue is whether the pricing structure effectively apportions price to risk and rewards from payment instruments sought by consumers.
As for security of cards, Nigerian banks became CHIP+PIN compliant in 2010 and arrangements are said to be in place for Biometric authorisation from 2015. This development is welcome taking the high fraud-risks environment which Nigeria presents (Agbasi et al, 2010; Olorisade and Azeez, 2012). Fraud-risks in Nigeria are internationally acknowledged; the UKTI, in its Doing Business in Nigeria guide advises British nationals not to use their credit cards at specific locations in Nigeria. This noted, most other ERPS instruments face huge risks (some identified in 2.3.2), take for instance, Mobile phone hacking12( Adepoju and Alhassan, 2010; Obot, et al 2012) and phishing13(Lau, et al 2004; Antiphishing Workgroup 2011) Nigerian consumers are increasingly losing money to international and local fraud syndicates, owing to illiteracy and naivety of ERPSs regulations. Awareness of risks inherent in their preferred payment choices is necessary to build trust and confidence in the ERPSs.
12
Someone who accesses a computer system by circumventing its security arrangements (Wikipedia, 2012)
13
Phishing is a fraudulent attempt to acquire personal sensitive information by masquerading as a trustworthy entity in an electronic communication (ibid)
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5.7 Financial
This perspective identifies financial considerations associated with ERPSs. The current payment regime makes POS payments free for consumers which is good as most survey respondents indicate they will avoid ERPS use where costs are high. However by charging merchants 1.25% of the transaction value, these merchants will logically prefer cash based transactions to avoid additional business related costs. Although benefits to merchants include reduce cash handling costs, reduced risk of robbery and loss of cash through pilferage and fire, nonetheless, noting the view of Ovia (2009), merchants will prefer traditional cash based systems where proper incentives are absent.
More even, the settlement cycle for merchants is T+1, just as for mobile payment operators. While this favours PSPs due to their relatively strong liquidity positions, the average Nigerian business faces tight liquidity constraints as early sales proceeds are often used to set the business in motion for the day. This comes in line with facts such as low GNI earlier stated, as well as the need to fuel their backup power generators every day. Factoring in POS merchants liquidity need is important to the success of the Cash-less project. Regardless merchants needs are not considered as part of this research, it is a fact they are users too.
As detailed stocking and analysis have been completed, a strengths, weaknesses, opportunities and threats summary of the current NPS is undertaken using a SWOT grid. This will ensure the final section of the discursive, Conclusions and recommendations: implications for user acceptance is substantially concluded.
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5.8 SWOTs Grid

STRENGHTS WEAKNESSES
1. Telecommunications penetration 2. Technology Infrastructure 3. Oversight function 4. Commitment of Institutions 5. Young population 6. Zero charges for consumers
1. Deployment of technology 2. Legal framework 3. Electricity infrastructure 4. High risk business environment 5. High business liquidity constraints 6. Low consumer protection 7. Low Banking density and interconnectivity 8. Technical skills shortage 9. Narrow post office network 10. Insufficient technical skills 11. Low awareness among citizenry 12. Religious and cultural beliefs 13. Non-integration of national database 14. Big-bang approach
OPPORTUNITY
THREATS
1. Financial inclusion for the unbanked 2. Drive economic development 3. Reduce cash dependence 4. Employment creation
1. Low literacy rates 2. High Unemployment 3. Political instability 4. Lack of Trust 5. Low awareness levels
Table 19 Swots Grid
Now that the grid is populated, it is obvious the current NPS is faced with a lot of weaknesses. Strengths, although partially healthy, would require a lot more commitment from regulatory authorities and participating stakeholders alike to minimise the impact of weaknesses and threats.
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6. Conclusions And Recommendations

: Implications for User Acceptance
In setting out the aims, strategy and design of the NPS, the goal is to ensure the retail payment systems are available without interruption, meet extensively all users' needs, and functions at minimum risk and sensible cost (SADC 2002, BIS 2006,ECB 2008)
This section attempts to conclude findings from previous chapters of this paper. As depicted by Figure 6 (Literature map), this phase fuses earlier findings to answer question 6 (i.e. what else can be done?) This represents research recommendations.
This paper sought to answer the following research questions:
1. What are electronic retail payment systems? (Chapter 2) 2. What types of ERPSs exist in Nigeria? (Chapter 2) 3. What ERPS characteristics drive the Nigerian consumers behaviour towards its adoption? (Chapter 4) 4. What are the infrastructural constraints to implementing efficient ERPS in Nigeria? (Chapter 5) 5. Have any arrangements been made by Nigerian stakeholders to contain these challenges? (Chapter 5) 6. What else can be done? (Chapter 6)
In chapter 2, ERPSs was defined; classified and identified based on both operational and product characteristics. The survey (Chapter 4) helped provide a picture of ERPS characteristics significant to users. In hierarchical order, these are Trust, Security, Cost, Reliability and Usability. It was discovered, whereas, that arrangements have been made by regulators to ensure Interoperability and Acceptability, therefore releasing them off our list. Confidentiality and Reward
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are least rated. Added, the young population are quicker to adopt ERPSs, there is low awareness amongst users of the benefits, risks and functionality of ERPSs and, as at the time of the survey, October, 2012, cash continues to be the most preferred payment medium.
Although these characteristics do not have an authoritative appreciation on the design of ERPSs or its instruments, all the same, they could aid understanding of user acceptance in general. As stated, the Cash-less project is ongoing, and while the researcher has attempted to constantly update research findings, it is admitted regardless, some of the facts adopted in infrastructure analysis might have changed. SWOTs Grid (5.8) attempts to answer question 4 of the research paper.
Discursive first considers users requirements (i.e. for safety, trust, reliability, usability, etc.) and in the light of infrastructure constraints discovered, enumerates action plans in the form of recommendations (i.e. what else can be done?).
6.1 TRUST
Confidence in retail payment systems is the foundation of trust which is one of the major drivers of user acceptance (Lee et al. 2010; Adepoju and Alhassan, 2010). Wierzbicki (2010) defines trust as the relationship between a trustor and a trustee in a context. This definition is enhanced by Efendioglu (2005), who goes further that trust goes beyond direct paying parties but to all institutional stakeholders involved in the ERPS process. All stakeholders thence, have a role to play towards building trust in the payment system.
They need to ensure users believe: i. ii. iii. iv. The Legal framework to be in their favour. That risks inherent in the business climate have been significantly reduced That their rights will be expediently exercised in the occurrence of fraud That they (Institutional) care.
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6.2 SECURITY
Security can be viewed from the legal and oversight, technological, Institutional as well as business perspectives. Users need to be convinced that the designs of payment instruments are resistant to any form of breaches (Pennanen et al., 2008; Susanto and Zo, 2011; Pan and Zinkhan, 2006), since inadequate security, whether perceived or real will undermine public confidence in the ERPSs.
. For its high importance, like trust, stakeholders must ensure: i. Security arrangements are in line with changing technological
advancements; these include authentication, integrity, authorisation, and so on. ii. Leveraging on the CBNs oversight powers, DMBs and merchants adhere to physical safety procedures such as PIN shields at ATMs and POS iii. There is in place, a flexible regulatory regime which reduces barriers to innovations in security iv. v. The Media reports objectively on system breaches Constant user education on types of fraud, for example how to identify ATM Skimming devices14 vi. Stricter legislations are in place against ERPS related offences to serve as a deterrent vii. Visible law enforcement
6.3 COST
Based on regulatory, technological and institutional perspectives, ERPSs should have the ability to process retail payments, absent high transaction costs (Low, Maxemchuk and Paul 1994, Humphrey et al 2001, BIS 2012). Costs here are twofold. One side is for both user and the merchant. The other is for the user alone. Although transaction costs are free for customers, they notwithstanding, face high internet broadband costs. More, some DMBs charges high fees for EFTs. On the merchants side, there is a 1.25% charge on every transaction. This presents a
14
Device affixed to an ATM machine which records details of unsuspecting ATM users
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possibility where the merchants attempt to transfer or avoid these charges, which will ultimately affect user acceptance. Regulators need to ensure i. Payment markets are fair, transparent and contestable to drive competition and innovation ii. Through oversight powers, enter arrangements with telecommunication companies to reduce internet costs iii. Inter-charge fees among switching companies are kept at the barest minimum to accommodate only fixed and marginal costs absent abnormal profits. iv. Intervention for introducing Straight Through Processing15 (STP) to reduce merchants liquidity risks v. Create incentive schemes for merchants and promotions for users
6.4
RELIABILITY AND USABILITY
Reliability relates to the smooth running of payment infrastructure (Min.& LI 2008; Lipson and Fisher 1999; Dawodu and obi 2012) while usability stresses ease of use and friendliness i.e. not sophisticated or complex (ISO 9241, 1996; Miyazaki and Fernandez, 2001). These characteristics are grounded on technological and institutional perspectives. Reliability is particularly dependent on ICT delivery channels through the internet which bank on efficient electricity infrastructure. Major operational risks include transmission capacity and continuity which are a function of the volume of data traffic (BIS, 2005). With the CBN rolling out approximately 130,000 battery-driven POS systems this year alone, enforcing earlier described arrangements with telecommunications companies will remain key critical success factors.
Concerning usability, systems design should excogitate the current literacy levels and English language deficiencies. In another light, the use of POS and Mobile
15
Same day settlements of transaction value
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payments require basic numeric skills for Money which Nigerians humorously possess in abundance. Integrating local language options as part of systems design will be advantageous.
6.5 CONFIDENTIALITY AND REWARD

As noted, confidentiality (knowledge of purchases by others) (Olorisade and Azeez, 2012; Belovin, 2006) and Reward (incentives for ERPS use) (BIS, 2012) were rated low by users. These characteristics are grounded on institutional and finance perspectives. Regulators should ensure details of users are protected against exploit, especially from direct marketing which constitutes a nuisance to most consumers. As earlier noted adequate incentive schemes should be in place to encourage merchants adoption.
Innovation! Innovation! Innovation!A case for public transportation

Near field communication is a set of standards for devices to establish radio communication with each other by bringing them to centimetre proximity (NFC forum, 2011). NFC builds upon RFID systems by allowing two-way communication between endpoints (Nosowitz, 2011). NFC can be used in contactless payment systems similar to those currently used in electronic bus ticket smartcards. According to the BIS (2012), since 1990, public transport companies began implementing smartcard bus ticketing for its convenience and efficiency. The first was the Octopus Card in Hong Kong, 1997 next was SmarTrip in Washington DC 1999, fast forward to 2003 with Londons Oyster Card. Other world cities like Seoul and Rotterdam have joined in its use.
Figure 37 Innovations in smartcard technology
Source: www.google.com
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An opportunity presents here for the Lagos BRT as earlier mentioned, transportation smart cards can be integrated with individuals national database ID, payment details and medical records amongst others. This will increase convenience for users, save lives in emergencies, whilst in the process reduce crime.
Other important recommendations include: a. Targeting the youth population through incentives schemes b. Furtherance of awareness campaigns (communicating progresses achieved through pre-recorded voice calls and bulk sms will assure user buy-in) c. Creating more user-institution platforms for interaction (Setting up a dedicated internet radio channel for training and dialogue will improve outreach) d. Engaging religious institutions as active stakeholders of the cash-less initiative since they play an increasingly important role in the Nigerian society. e. Increased publications and communication to ensure transparency in payment markets, and f. Improved ERPSs data availability to encourage analysis and discussions
On a final reflection, this study settles on the future of ERPSs Globally. In a decade, Biometric authentication of transactions will be wide spread (Mordini, 2012). Regulatory authorities in Nigeria, peculiarly the Nigerian Identity Management Commission (NIMC) should therefore ensure adherence to industry standards of compliance, regarding unauthorised access to sensitive data. This would protect Nigerian citizens personal information against abuse in the future.
This study managed to reveal: 1. There is a slow but growing trend in electronic payment systems adoption in Nigeria which creates opportunities for investment, innovation and employment. 2. ERPSs characteristics of importance in the Nigerian e-payment landscape.
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3. The Big-bang approach is a limitation to the successful implementation of the cash-less project. Bearing in mind the BIS (2006) recommendation modernisation projects should first, fix key problems such as education, awareness and technological infrastructure etc. This should be followed by incremental updating of the current system to meet basic standards of timeliness, reliability and security after which long term advancements can be considered.
The objectives of this research have been achieved by answering stated research questions. Future work will seek to understand and explore the bigger picture of Electronic payment systems, including implications for Nigerian businesses and the government.
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7.Researchers Reflections on Learning

This final chapter provides the opportunity to return to the research work and, look back on the cognitive operations engaged by the researcher through the process of this research work. With a threefold focus, this chapter identifies (1) what has been learnt, (2) how the learning has occurred and finally, (3) how lessons learnt will be applied to future endeavors.
7.1 Introduction
The Oxford dictionaries define learning as the acquisition of knowledge or skills through study, experience, or being taught. Rijcke (2012) takes this further,
maintaining, learning is a process that incrementally builds upon and is modeled by existing knowledge, as against a collection of factual and procedural knowledge. To sum these definitions up, David Kolb (1984:41), Professor of Organizational Behavior at Case Western Reserve University posits learning is the process whereby knowledge is created through the transformation of experience. Knowledge results from the combination of grasping experience and transforming it.
7.2 What Has Been Learnt?

The more you know, the more you realise you know nothing. Socrates (nd) This saying best describes the researchers first lesson through the course this undertaking. Beginning from the researchers topic choice decision, through research proposal and final write up; the continual process of illumination lead the researcher to unknown pockets of knowledge alien to the researchers world.
In the view of Wertenbroch and Nabeth (2000), we learn from experiences that allow us to Absorb (read, hear and feel), Do (Activity) and Interact (socialising). In addition, learning also occurs through reflectiontaking time to think, whilst
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through the process, seeking to connect recent and previous experiences to form a sound mental schema (Dewey, 1933).
With the need to review and absorb a wide array of literature, the researcher sought to learn speed readinga collection of reading techniques directed at increasing rates of reading without greatly reducing comprehension or retention (Buzan, 1991). The researchers use of language has also improved. Repetitive learning (Poldrack, 2001) has helped develop researchers grammar, spelling, knowledge of new words and context of its use. Writing skills for an academic audience have also been developed.
Besides sharpening existing ICT skills (Activity) such as use of Microsoft Word and Microsoft Excel, the researcher also learnt how to employ Adobe Photoshop16 (infographics: Figure 34) and SPSS statistics for data analysis and presentation. Searching skills on the internet have also improved, the researcher found, using specific words streamline search results, improving quality of information obtained, as against quantity.
Other areas of learning and improvement include inter-personal skillstactical skills in dealing with persons. This was necessary when interacting with survey respondents, tutors, dissertation supervisor and so on. Effective planning and time management skills were also polished.
Finally, critical reflection skillsthe process of analysing, reconsidering and questioning experiences within a broad context of issues (Murray and Kujundzic, 2005) have been developed as it is a requirement for a Masters level paper.
16
Advanced software application for graphics design
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7.3 How Has The Learning Occurred?

Although there is no mutually exclusive way to learn (Constantinidou and Baker, 2002), learning can be summarily based on different styles. Keefe (1979) defines learning styles as the collection of characteristic cognitive, affective, and physiological vectors that provide relatively consistent indicators of how a learner perceives, interacts with, and responds to the learning environment.
Kolb's learning theory lays out four distinguishable learning styles, which are based on a four-stage learning cycle. These are Concrete experiencing (CE) doing something; Reflective observation (RO) assimilating what happened; Abstract conceptualisation (AC) making conclusions and Active experimentation (AE) deciding on future action plans.
Figure 37 Kolb learning style
Source: Kolb, 1984
Peter Honey and Alan Mumford (1993) describe four distinct styles adopted by learners. They indicate that most learners often assume more than one of these styles. Adding, certain learning activities are more suited to particular learning styles.
These styles are Activistprefer new challenges, more inclined to group involvement and prefer hands on approach to learning; Theoristlike to understand theories behind actions, opting to analyse and synthesise based on proven concepts and models; Reflectorslearn from activities which permit observation, thought and review of what has happened and Pragmatist enjoy
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trying out the new, seek new ways to solve existing problems, practical approach to learning. Honey and Mumford (1993), pointed out the connection between Kolbs model and theirs stressing there exists more similarities than the differences. This can be highlighted by the diagram below.
Figure 38 Kolb with Honey and Mumford combined
Herein is how the learning has taken place:
When the researcher embarked on this academic endeavor, the initial concern was about the subject being learnt. It however became apparent, that being aware of the learning methods most applicable to the researchers personality and context of the task being undertaken, were just as important.
Selecting an appropriate learning method is part of a concept called metalearningbeing aware of and taking control of ones learning (Biggs, 1985:55). This awareness made the researcher become a more effective and efficient learner.
The researcher found that it was important to take the Activist and Reflector stance in the beginning of this research work; this was to ensure views of earlier researchers in the field of study were thoroughly understood. By taking a deep
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plunge into the world of the unknown, the researcher became confused as to the right direction to follow in the course of the research. Choosing a descriptive topic title was not easy either, as awareness of new information often steered the paper in turbulent directions.
After the first researcher-supervisor meetingabout a month from the research proposal results release, the researcher remained in the dark. The informed need to break this cycle was the tipping point where critical reflection began to develop. Awareness of the researchers physical environment suddenly grew in importance as a composite of learning (Balsys, 2011). The researcher from then on ensured all competing stimuli were mitigated or eliminated. In line with psychologist, Mihalyi Csikszentmihalyis flow theory (2008), the researcher maintained intense involvement in the dissertation and was able to remain focused for the length of time needed to achieve constitutive activities within the overall research process According to Bandura (1977), environments which promote interpersonal interaction could improve reflection. And so, the researcher sought to engage every person that bothered to listen with the issue of ERPSsfrom discussing epayments with Tesco17 sales assistants during transactions; observing the speed of transaction processing, up to joining online forums where e-payment discussions are held.
Now equipped with relevant practical information and knowledge, it was time for the researcher to take a break from the research work and reflect on what had been done; thinking of relevance of materials held. After a weeks break, the researcher read through the paper again and the aha! Moment18 set inthe pragmatist learner was unleashed. The obvious link between the topic and current need became apparent. Earlier models collected for evaluation now had their precise functions. It was time to start writing.
17
18
Retail Super and Hypermarket chain in Europe and Asia A moment of sudden insight or discovery (Oxford Dictionaries)
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The final journey of reflection had begun when the researcher sat long and quietly to review details of all supervisor-researcher meetings. The researcher picked up clues on the right directions to follow by recalling aspects of the research work-inprogress which interested the supervisor, such as graphical representations. This informed the need to improve the papers discursive with the aid of diagrammatic representations among other feedbacks actioned.
7.4 Future Applications of Lessons Learnt

Looking into the future from this moment, the researcher has learnt valuable skills too numerous to mention, some too abstract to quantify or identify.
In general, being able to think in a multifaceted manner will help in both life and work engagements. Also, the ability to criticise others work, whilst also being able to contribute own views towards the propagation of new thoughts and ideas is a skill the researcher will apply to future work and research endeavors. More, knowledge of researchers unique learning pattern discovered would ensure work tasks and future research engagements will be completed to higher quality standards on time.
The ability to relate with a wide array of persons will help improve networking skills as well as understanding standpoints and opinions of other persons objectively. Better use of English grammar will improve the quality of literature to be produced by the researcher. Knowledge of new ICT skills will also not go to waste, the researcher looks forward to applying the SPSS Statistics software in undertaking more voluminous and technical analysis in the social science field.
Finally, this undertaken has revealed certain areas of improvement in the researchers skills and knowledge set. By working on these, future engagements would be better approached.
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References and Bibliographies

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Wertenbroch, A.; Nabeth, T. (2000). Advanced Learning Approaches & Technologies: The CALT Perspective. INSEAD Calt. Wierzbicki, A. (2010), Trust and Fairness in Open, Distributed Systems. Berlin, Heidelberg Springer WORLD BANK. (2012). World Development Indicators. Washington, DC, World Bank. WORLD BANK (2012) Indicators Data. [online] http://data.worldbank.org/indicator [Accessed: Mar 16 2012]. Available at:
WORLD BANK (2012), Global World Payment Survey 2010. Washington, DC: World Bank. Yin, R.K. (2003) Case Study Research: Design and Methods (3rd edn). London:
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Zulu , B. (2006) E- Payment A Challenge For Africa. African Journal of Business Management, Vol.4. No.2. pp.18-26.
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APPENDICIES
Appendix A1
115
Appendix A2
116
117
Appendix A3
118
119
Appendix B User Acceptance of e-payment in Nigeria

This survey is being carried out to find out how you feel about the Current CBN Cash-less policy in Nigeria. Please answer the following questions freely. You cannot be identified from the information provided. This exercise should take about 5 minutes to complete. Thank you.
Please tick () as appropriate.
1. Are you male? 2. Is your age between
Female? 18-25 46-55 26-35 56-65 36-45 66-70
3. Are you?
Self employed Employed in public service Employed in private sector Unemployed Student
4. What is your highest education qualification? Junior Secondary Senior Secondary level Under Graduate Post Graduate Others

5. Is your monthly household income above N10, 000 N50, 000 N100, 000 N500, 000 N1m
120
6. Have you used e-payment in retail transactions?
Yes
No
7. How often do you use e-payment every week? Once Twice Many Never
8. Please select your favourite payment mediums (as many) ATM machine Debit Card Credit Card POS

Cash
E-fund transfer Internet Prepaid card

Mobile payment
9. From the options in question 8, which is your single most preferred? ................ 10. Are you aware your transaction details are stored? Yes No
11. Is it important that your financial information is safe? (e.g. Name, account details)
Very important Quite important Neutral Quite unimportant Not important
12. Are you worried that things purchased are known by banks and shops?
13. How important is it that one particular e-payment system is generally accepted?
121
14. For POS transactions, what is your most preferred payment option? Debit Card Pre-paid Card Mobile payment
15. Do you believe money from one payment medium should be easily transferable to another? Please tick () as appropriate. Account to Cash Very important
Quite important
Account to Mobile
Mobile to Account
Neutral Quite unimportant Very unimportant 16. Do you believe you should pay a charge to spend your money? Yes No
17. Will the charge be an important part of your decision to use e-payment?
18. How important is it to you that every system accepts your preferred e-payment choice?
19. Is it important that e-payment options are always working well?

20. Do you consider security when you pay electronically?
Yes
No
21. Is it important that you use a system which friends and family think is secured?
122
22. If you believe a payment system is not secure, will you still use it? Yes Maybe Never 23. How important is it that other people trust the systems you choose to pay with?
24. Will you trust payment systems issued by Non-banks? Yes Maybe Never
25. If you feel a payment system is not trust worthy, will you still use it? Yes Maybe Never
26. How important is it to you that the current payment systems are not complicated?
27. Where you feel payment method is hard to use, will you still use it? Yes Maybe Never 28. Do you believe you should be rewarded when paying electronically?
123
Appendix C
BOX 1: WORLDBANK GUIDELINES FOR DEVELOPING A COMPREHENSIVE RETAIL PAYMENT STRATEGY
Efficient retail payments systems have a significant positive impact on the broader economy. There are a number of public policy objectives that need to guide the policies and actions of national authorities in countries with under-developed retail payments systems, the key public policy objectives being: (i) Safety and efficiency; (ii) Affordability and ease of access to payment instruments and services; (iii) Availability of an efficient infrastructure to process electronic payment instruments; and, iv) Availability of a socially optimal mix of payment instruments. These public policy goals should guide the actions of the public authorities, specifically the central bank, to positively impact the drivers of retail payments system development. In this regard, the following six guidelines can be used by the central bank to develop its national retail payments development agenda: Guideline I: The market for retail payments should be transparent, have adequate protection of payers and payees interests and be cost-effective. Guideline II: Retail payments require a reliable underlying financial, communications and other types of infrastructure; these infrastructures should be put in place to increase the efficiency of retail payments. These infrastructures include, at a minimum, interbank electronic funds transfer systems, interbank card payment platforms, credit bureaus, data sharing platforms, interbank real-time gross settlement systems, reliable communications infrastructure and also a national identification system for individuals.
Guideline III: Retail payments should be supported by a sound, predictable, nondiscriminatory and proportionate legal and regulatory framework. Guideline IV: Competitive market conditions should be fostered in the retail payments industry, with an appropriate balance between cooperation and competition to foster, among other things, the proper level of interoperability in the retail payment infrastructure. Guideline V: Retail payment systems and services should be supported by appropriate governance and risk management practices. Guideline VI: Public authorities should exercise effective oversight over the retail payments market and consider proactive interventions where appropriate. Implementing the retail payments system development agenda requires public authorities, in particular the central bank, to take an active role in coordinating and catalyzing action from all the stakeholders including not only retail payments industry but also the other corporate and government authorities. Creating a national retail payment systems development plan and entrusting its implementation to an energized National Payments Council (NPC) would ensure orderly and self-sustaining reforms. The key components of an effective plan would need to include: (i) stock-taking of current situation; (ii) establishment of internal organizational arrangements; (iii) development of a co-ordination framework to involve all stakeholders; (iv) development of a common vision, objectives and standards; (v) agreement on actions that need to be taken; (vi) development of an implementation plan; and, (vii) monitoring progress.
Source: World Bank
124
Appendix D
125
126

Dissertation Adeniyi Balogun Electronic Retail Payments System in Nigeria (Repaired)

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ELECTRONIC RETAIL PAYMENT SYSTEMS IN NIGERIA :User Acceptance Through Infrastructure Perspectives

MASTERS OF ARTS IN FINANCIAL MANAGEMENT

This work is dedicated to the Allu 4.

ELECTRONIC RETAIL PAYMENT SYSTEMS (ERPS) ..................... 11

USER ACCEPTANCE OF TECHNOLOGY .............................................................. 26

RESEARCH METHODOLOGY ............................................................... 39

ACCESS.............................................................................................................. 49 ETHICAL CONSIDERATIONS............................................................................... 49

CREDIBILITY OF RESEARCH DESIGN ................................................................. 50

USER SURVEY OF ERPS ......................................................................... 53

DEMOGRAPHICS AND DESCRIPTIVE STATISTICS .............................................. 53

USER PERCEPTIONS OF ERPSS CHARACTERISTICS ........................................... 57

NPS STOCKTAKING REPORT ............................................................... 62

LEGAL AND OVERSIGHT LANDSCAPE ............................................................... 76 TECHNOLOGICAL............................................................................................... 78

5.6 5.7 5.8

CONCLUSIONS AND RECOMMENDATIONS .................................... 85

RESEARCHERS REFLECTIONS ON LEARNING ............................. 92

REFERENCES AND BIBLIOGRAPHIES ...................................................... 98 APPENDICIES.................................................................................................. 114

1.1 Study Background

Figure 1 Timeline of money

1.2 Country Overview

Figure 2 GDP Growth rate

Source: World Bank, 2012

Figure 3. OPEC Share of world crude oil reserves

Figure 4 GNI per capita (US$)

Source: World Bank, 2012

1.3 Problem Discourse

1.4 Research Objectives and Questions

1.5 Scope and Delimitation

1.6 Structure of Dissertation

Chapter 3: Research Methodology

Chapter 6: Conclusions and Recommendations

Chapter 7: Self-reflective Learning

Figure 6 Literature Map

Source: Author Design

Nigerian context, World payment report survey

Defined based on Online and face to face application

Evaluated by Product and Channel

Diffusion of innovation, Technology Acceptance Model Theory of Reasoned Action

User related EPS characteristics

NPS Perspective: to guide findings and discussions

Measurement benchmarks for certain components of the NPS perspective

6. What else can be done?

2. Electronic Retail Payment Systems

2.1 Definition of ERPSs

2.2 Global Snapshot of Non-Cash Payments

Figure 7 Global Non-cash Payment Report 2011

Source: WPR, 2011

Figure 8 Key Global players Currency-In-Circulation

Source: The Economist, 2012

2.3 The Nigerian Context

Figure 9 Nigerian cash transaction 4

Figure 10 World Literacy map 2011

Source: CIA Factbook 2012

Sweden United Kingdom United States Nigeria

CIC per capita

Sweden United Kingdom United States Nigeria

2.3.1 Electronic Payment Environment in Nigeria

Figure 13 Corruption Perception Index 2011

Source: Transparency international, 2012

Figure 14 Internet users (per 100 people)

Source: World Bank, 2012

Figure 15 Mobile cellular subscriptions (per 100 people)

Source: World Bank, 2012

Figure 16 Electric power consumption (kWh per capita)