An X-Ray of the Level of Electronic Purse Usage in Nigeria

Abstract

This study sets out to examine the level of e-purse usage in Nigeria. Despite the invasion of e-purse as electronic banking channels that has the potential of disempowering the cash systems of exchange and granting firms competitive edge, it is interesting to note that the rate of cash usage still dominates in the Nigeria society. Thus, when compared with more advanced countries, less technically developed nations like Nigeria tend to be backward in terms of e-purse adoption and usage. The study results show that such factors as Copyright © IAARR 2011: www.afrrevjo.com 200 Indexed African Journals Online: www.ajol.info insecurity, erosion of privacy, customer inertia, operational difficulties and the like are the factors militating against e-purse usage in Nigeria. It is believed that if these inconsistencies are taken care of, the rate of e-purse acceptance will outweigh its present status in the near future.

Conceptualizing a Cashless System for the Retail Banking Sector of an Emerging Economy: Policy Implications for the Nigerian Apex Bank

“…Even within the existing bank customers, there are equally some customers who may not be willing to adopt the innovation for fear of insecurity, high risk perception, inertia, lack of trust, low compatibility and high level of complexity. Ogbuji et al (2011) found that insecurity, illiteracy and customer inertia are the key causes of low acceptance and usage rate of e-purse in Nigeria. Wai-Ching (2007) found that security concerns is one of the factors that play an important part in determining the users' acceptance of e-banking services with respect to different segmentation of age group, education and income level.…”

“…Since inertia reflects customers' reluctance towards trying alternative products and services, some research efforts in the academic literature have been devoted to examining the determinants of this reluctance even in the face of dissatisfaction. Ogbuji et al (2011) argued that insecurity of electronic transactions is one of the root causes of customer inertia towards e-purse acceptance and usage. Customers' ignorance or absolute absence of alternative products or services can equally play a part.…”

“…Zhu, Kraemer, Gurbaxani, and Xu (2006) argued that the benefits arising from a promising innovation will be curtailed if such innovation cannot be widely adopted while Frolick and Chen (2004) stated that the adoption of mobile commerce and services has been slower than expected due to complexity of the transactions, perceived lack of security and lack of user friendly mobile portals. Further, Ogbuji Izogo, and Onuoha (2011) conceptually demonstrated that the acceptance of electronic systems of payment is far below expectations in Nigeria. What these research evidences suggest is that the transition from cash to electronic transactions system requires a clear conception of some latent consumers' behavioral predispositions.…”