Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
This study examined electronic banking payment systems and its impact on the Nigerian economy with the application of the Phillips-Perron test statistics, Johansen cointegration techniques, the Pairwise Granger Causalitytechniques and the error correction mechanism on a log linear multiple regression framework. Quarterly time series data used were obtained from secondary sources, mainly from the CBN Statistical Bulletin (2019) from 2011(Q1?Q4) to 2019(Q1?Q4) on Value of Cheques Cleared (CHEV), Automated Teller Machine Payment Value (ATMV),Point of Sale Value (POSV), Web / Internet Transfers Payment Value (WEBP), Mobile Payment Value in Nigeria (MOBP), Nigerian Interbank Settlement Scheme Instant Payment value (NIPV) and National Electronic Funds Transfer Value (NEFT) as proxy for electronic banking payment systems and Gross Domestic Product (GDP) as proxy for the Nigerian economy.The results from the Phillips-Perron test statistics revealed that all the selected economic and electronic payment system variables (GDP, ATMV, POSV, WEBP, MOBV and NIPV) were stationary at first difference 1(1) except CHEV and NEFT which were stationary at level 1(0). The Johansen cointegration test results indicated a unique long run relationship between CHEV, ATMV, POSV, WEBP, MOBV, NIPV,NEFT and GDP as both the Trace and Max-Eigen statistics revealed the existenceof at least six cointegrating relationship in the modelat 5 per cent level of significance. The error correction model results revealed positive and significant impact between ATMV, WEBP, MOBP and NEFT on GDP, thusa unit change in automated teller machine payment value, web / internet transfers? payment value, mobile payment value and the national electronic funds transfer value incresed gross domestic product in Nigeria by 6.339550, 107.4928, 14.77938 and 1.276544 per cent respectively.The results further revealed that CHEV, POSV and NIPV had negative impact on gross domestic product in Nigeria. Meaning that a unit change in CHEV, POSV and NIPV reduced GDP by -0.160983,-2.375795 and -1.054403 per cent respectively.Finally, the results of the Pairwise Granger Causalitytest exhibited unidirectional causation running from CHEV, ATMV, POSV and MOBV to GDP as their pro-values are less than 0.05 (P<0.05). Thus, the null hypothesis of no causation was rejected as the feedback causation phenomenon was evident. The study therefore recommended, that the electronic banking payment systems should be strengthened in Nigeria by government and financial institutions, by investing positively on internet and electricity supply to help correct the negative value of cheques cleared, point of sale valueand the Nigerian interbank settlement scheme instant payment.

Keywords: Gross Domestic Product, Automated Teller Machine, Point of Sale, Mobile Payment

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