Cashless Policy and Operational Efficiency of Payment Terminal Service Providers in Lagos State, Nigeria
Loading...
Date
2015
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The study examined the statutory responsibilities of payment terminal service providers in Lagos State; investigated the level of efficiency of payment terminal service providers in cashless operations in the state; and examined the prospects of the payment terminal service providers cashless operations in the state. This was with a view to ascertaining the efficiency of payment terminal service providers (PTSPs) in cashless operations in Lagos state
The study used both primary and secondary data. Primary data were obtained through the administration of questionnaire to 40 Point of Sale terminals (PoS) merchants and 160 end-users who were purposively selected. Secondary data such as guidelines on PoS terminals and statutory responsibilities of payment terminal service providers were sourced from the Central Bank of Nigeria and Manuals on expected standards of PTSPs from the Nigeria Inter-Bank Settlement System. Data collected were analysed using percentages, frequencies, correlation, analysis of variance and chi-square.
The results of the analysis revealed that 62.5% respondents agreed that their payment terminal service providers were operative in delivering their statutory responsibilities. The implication was that PTSPs were diligent in carrying out their statutory responsibilities. Also 88.75% of the study accepted that the PTSPs were deficient in rendering efficient services to PoS merchants and end-users. The implication was that payment terminal service providers were still lacking in their level of operations offered to PoS merchants and end-users. In addition, also showed that 70% of the respondents were of the opinion that there were positive prospects (network reliability, speed, improved technology and efficiency) in payment terminal service providers in cashless operations. It is therefore interpreted that the PTSPs would improve on their performance in cashless operations. This indicates that the PoS terminals were productive and will be highly useful in the future for maximal operations. The high R value (75.39, df = 44, p<0.05) showed that the growth in statutory responsibilities executed by the PTSPs to merchants and end-users will lead to (75%) increase in cashless operations. (F (13, 146) = 10.57, P<0.05) This implies that an increase in efficiency of payment terminal service providers will result to growth in cashless operations to PoS merchants and end-users. In addition (X2 =730.7, df= 208, p<0.05) represents likehood ratio of greater operation and efficiency in the activities of PTSPs. The study established that there were prospects in payment terminal service providers’ cashless operations.
The study concluded that while payment terminal service providers were effective in delivering their statutory responsibilities, they were not efficient in rendering their optimum services to merchants and end-users due to lack of awareness, high usage of cash, insufficient sensitization and interoperability of cards on the platforms.
Description
xiv.95p
Keywords
Cashless Policy, Terminal Service, Operational Efficiency, Payment, Nigeria