However, security, trust and convenience are among the major contending factors affecting the adoption of e-payment systems in Nigeria. This paper presents issues on the factors necessary to facilitate the development of PEPS Niger a and devise ways to enhance its adoption by users. Keywords: electronic payment system, e-money, and e-payment, Internet. 1. Introduction The worldwide proliferation of the Internet has led to the recent birth of electronic payment system : a payment service solution-software that enables monetary value to be transferred digitally.
Today, electronic payment system s flourishing due to the openness, speed, anonymity, digitization, and global accessibility characteristics of the Internet [1 2], which has facilitated real-time payment transactions and the r business activities. In this paper, we considered some critical examinations on the existing payment structure in Nigeria. AY so reviewed, was different related literatures on e-payment system, and data from research reports. T chemical Journals, newspapers, and magazines were likewise examined.. 2.
A Brief Review of the General Payment System in Nigeria In a country like Nigeria, where almost eighty percent of TTS population rely on physical cash rather than electronic payment, it is not so simple Just for people and employers of labor, to consider and decide on the basis of cost and benefit of using e-payment systems . In the course of preparing this research, we had the opportunity of visiting few/remote places to find out the perception of the people about electronic money. It was observed that most people have no common knowledge about the Internet, let alone the existence of e-payments.
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People are quite far from all the CIT developments take Eng place in banking. What people know about banking is the use of physical cash for opposite and payment, but not electronic payments. The existing structure of the Nigerian payment system is fully based on traditional payment instruments of cash and cheeses . Even for large-value payments, like sale and purchase of land and building, people prefer physical cash rather than receiving any other form of payment. This also applies to the general popular Zion. In businesses, people prefer using cheeses and drafts.
Thus, Apex Bank (Central Bank of Nigeria - CAB) operates a clearing house, with many network centers for performing queue clearing throughout the country. The clearing house renders revives to the member banks and financial institutions only. Generally, all the banks and financial institutions are members of the clearing house. 2. 1 Electronic Payment Initiative in Nigeria Electronic Payment initiative began recently in Nigeria. Not all the banks and FL uncial institutions are participating in the e-payment system . Although to date, most of the commercial I banks have engaged in providing some form of e-banking services.
It is to be noted that not all of these institutions extend their e- banking facilities to their entire branch network. The e- payment services are mostly provided in the capital city ND some bigger cities nationwide. As mentioned, the e-payment facilities available in Nigeria are Automated Teller Machine (ATM) service, debit card, credit card, mobile banking and Internet banking . Intertwines Nigeria Ltd provides the switching and settlement facilities for trans actions performed on ATM; and transact Nigh. Ltd provides mobile e-payment solutions switching and service provider.
Banks purchased their software from different vendors to provide all these services to their customers. Authenticity, inter-operability, validity and confidence solely depend on the supplier of hat software . However, the central bank of Nigeria and the supervisory authority of the Nigerian financial system, has thus initiated steps towards the regulation of electronic payment cyst ms in Nigeria . Electronic payment system has also experienced a lot of setback in recent years due to limited availability of ATM services .
These machines are only made available to few bank branches and clients, while the demand for the card is higher than the services provided. Infrastructure and Information Technology (IT) constraints also contributed to some of the setbacks experienced (such as: gig cost of internet connectivity, energy challenges, banks not fully automated, banks not ready for electronic payment services, and contentedness of people with the existing system because of lack of awareness on the benefit of the new technology . CICS. Reapers/locals-9-2-1-462-467. Dif Facilitating the adoption of e-payment systems: theoretical constructs and empirical analysis Document Information: Title: analysis Author(s): Gives Г¶azans, (Middle East Technical University, Ankara, Turkey), Guyana Binaural, (Brunet University, Submerged, I-J), Ray Hackney, (Brunet University, Submerged, I-J) Citation: Gives Г¶azans, Guyana Binaural, Ray Hackney, (2010) "Facilitating the adoption of e- payment systems: theoretical constructs and empirical analysis", Journal of Enterprise Information Management, Volvo. 23 Sis: 3, up. 05 - 325 Keywords: Electronic commerce, Payments, Risk, Trust Article type: Research paper DOE 10. 1108/17410391011036085 (Permanent URL) Publisher: Emerald Group Publishing Limited Abstract: Purpose - The emergence of online transactions, enabled through internet media, has led to an increase in the availability of electronic payment (e-payment) systems. This research aims to investigate, through theoretical constructs (technology acceptance model, theory of reasoned action) and an empirical analysis, the critical factors that may ensure consumer adoption of these facilities.
Design/methodology/ approach - This research study mainly uses the deductive approach to consider secondary sources and primary data, where hypotheses have been developed in order to demonstrate the findings. An initial literature review revealed six issues that are considered critical for e-payment considerations. An anonymous and self- administered survey based on the research model was developed and e-mailed to he respondents. A total of 1 55 questionnaires were coded and analyses using SAPS to analyses the hypotheses.
Advances in information technology and changes in laws, institutions and regulations in some countries have encouraged the emergence of new payment instruments as well as the delivery and processing arrangements for small and large value, time critical payments. With e commerce now in the mainstream of economic activities, we can therefore expect more major changes in the payment systems worldwide in the next five years than we have in the last five decades. Obviously, the e Philippines cannot escape from this sea change.
This paper discusses key operational concepts involved in a payment system and describes the emerging payment systems in industrialized countries. This gives developing countries, like the Philippines, a preview of the likely evolution of their payment systems in the next few years as they deepen the integration of their economies with the rest of the world. The paper gives a detailed description of the existing payment system in the Philippines and disc uses innovations in payments media, especially noncoms payment instruments, and facilities for the clearing and settlement of payments.
Areas for improving the efficiency and reducing risks in existing payment system have been identified. Developments in the payment system have implications for the conduct of monetary policy. The second to the last section of this paper, therefore, deals with this issue. In particular, it discusses specific payment system innovations, such as the switch to ARTS system m and use of electronic payments media, that can enhance or attenuate the effectiveness of traditional monetary tools. The last section presents some recommendations.
Key words: payment system; electronic payment system; credit transfer; debit transfer; electronic money; transmission mechanism; seignior; queue clearing. President, Philippine Institute for Development Studies (PITS). The author wishes to thank Dry. Vaccine Alden's, Jar. , member of the Monetary Board, and Mr.. Francisco P. Yap, Jar. , President of the Philippine Clearing House Corporation, for their insightful comments on the first draft of this paper. Thanks are also due to Mr.. Gill Olivarez Lime, Mr.. Francis vela, Mr.. Jerome A. Archangel, Mr.. Alton Offering, Ms. Carlisle Scintilla, and Mr..
Joel A. Ramose for sharing their insights on how the payment system in the Philippines operates. The author s grateful to Ms. Sharon Theta Vital, Ms. Merle Galvan and Ms. Juanita Deletion for their excellent assistance in preparing this paper. The usual disclaimer applies. 2 INTRODUCTION It is commonly known that a country's infrastructure system determines to a large extent the efficiency of the economy. In a modern economy, the payment system I s a major component of the country's infrastructure system. Indeed, no country nowadays can afford to take its payment system for granted.
Firms pay wages to their employees and purchase raw materials from their suppliers. In turn, they receive payments for the sale of their rodents and services. Consumers make payment transactions several times in a day. Needless to say, value is transferred among participants in the economy every minute of the day, and it increases as the economy grows. The country 's payment system, therefore, must be efficient so that funds can quickly move among market participants for productive use, thereby promoting more activities in the economy. According to Humphrey et al. 2000), the resource cost of a nation's payment sys tem can account for 3 percent of its GAP. Modernizing a country's payment system can certainly reduce that resource cost. Thus, while the country continues to spend on roads, bridges, power supply, etc. , it must not neglect to invest in its payment system m to improve the efficiency of economy, in general, and the financial system, in particular. Through the years, payment systems have considerably changed as forms of payment have evolved from precious metals to currency and checks and recently to electro ionic payments.
These changes have been made because of the need to facilitate voluminous transactions occurring in rapidly growing and increasingly more sophisticated economies. Customers naturally seek the most efficient payment teeth, while providers of payment services normally seek the most profitable payments system. Advances in information technology and changes in laws, institutions and regulations in some countries have encouraged the emergence of new payment instruments as well as the delivery and processing arrangements for small and large value, time critical payments.
With commerce now in the mainstream of economic activities, we can therefore expect more 3 major changes in the payment systems worldwide in the next five years than we have I n the last five decades. Obviously, the Philippines cannot escape from this sea change. Developments in the payment system have implications for the conduct of monetary policy. Well functioning financial markets can improve the effectiveness of Indore CT instruments of monetary policy because it is through these markets that the signal of monetary policy is transmitted to the intermediate and ultimate targets of the policy Monsoons et al. 998). The effective functioning of the financial market is, in turn, affected by the extent of the efficiency of the country's payment system. Also, rapid innovations taking place in the country's payment system can unpredictably alter the emend for and supply of money, thereby affecting the effectiveness of convene national monetary tools. Monetary authorities, therefore, cannot afford to be indifferent to the rapid innovations taking place in the payment system.
A country's payment system, no matter how advanced and sophisticated, is not immune to risks. One part y in a payment transaction may not be able to receive or use the funds at a time when she needs them for another transaction for one reason or another (e. G. , fraud, bank closure, clearing and settlement failures, etc). More importantly, failure of one par captain to settle one large payment transaction could quickly spread to other transactions and institutions involved in the payment system, causing disruptions to the entire payment system.
Systemic failure of the payment system can inevitably undermine t he effectiveness of monetary policy and adversely affect the real sector of the economy. The monetary authorities, therefore, have great interest in promoting efficient and sound payment system and in seeking ways to minimize systemic risk in the payment system because it has important implications for the conduct of monetary policy, the soundness of the uncial institutions and the functioning of the economy as a whole (Baling et al. 996). Recently, the Committee on Payment and Settlement Systems (CAP AS) of the Bank for International Settlements (IBIS) has developed core principles for systematically 4 important payment systems (see Table 1 These are certainly relevant to emerging market and transition economies especially since they are in the process s of improving their payment systems in order to better handle the growing payment flows within and across their borders.
The development of these core principles clearly demonstrates he amount of attention currently given by developed as well as develop ins economies in modernizing payment system in light of increasing financial market integration worldwide. This paper in general attempts to assess the efficiency of the existing payment system in the Philippines and its implications for the conduct of MO notary policy. Section II discusses key operational concepts involved in a payment system. This provides a general background to the issues discussed in the subsequent sections.
Section II discusses emerging payment systems in industrialized countries. Modern payment systems have evolved in industrialized countries and rapidly spread to developing countries, especially to those that have already substantially liberalized their financial markets. This evolution has continued in response to the growing v illume and complexity of the transactions and as new technologies emerge. Thus, the emerging payment systems in industrialized countries provide developing countries, like the Philippines, a preview of the likely evolution of their payment systems.
Socio n IV describes and makes an assessment of the existing payment system in the Philippines. Section V assesses the implications of the existing and likely evolution of the country's payment system for the implementation of monetary policy. The last section presents some recommendations. The IBIS is an international organization, which fosters cooperation among central banks and other agencies in pursuit of monetary and financial sat ability and serves as the central bank of central banks.
Its head office is in Basel, Switzerland and its representative office for Asia and the Pacific is in Hong Kong. 5 Economic transactions involve the rangers of goods and services and the corresponding transfer of value . As illustrated in Figure 1 , these transfers flow in opposite direction. A pa Yemen system, which is indicated in the lower part of is a method of transferring value between buyers (payers) and sellers (payees). In reality, a payment system is much more complex than what is suggested in the figure above. 1998) provides the following comprehensive description of a payment system: "A payment system encompasses a set of instruments and means generally acceptable in making payments; the institutional and organizational framework overdoing such payments (including prudential regulation); and the operating procedures and communications network used to initiate and transmit payment information from payer to payee and to settle payments. " This section discusses the functions, types of risks and payment instruments in a payment system.
A. Functions of a Payment System Any payment transaction has essentially two parts: the flow of information providing payment instructions and the flow of funds . Both flows may have different timing and direction. Each payment trans action requires some form of payment instrument o convey the information about the transactions, which may include the face value of the payment, the identity of the parties (I. E. , the payer and the payee) and their intermediaries, the transaction date, ND the value or settlement date.
Regardless of the type of payment instrument used to effect payment, the payment system's functions of clearing and settlement occur. Clearing is the process of transmitting, reconciling and in some cases confirming Payne NT orders or security transfer instructions prior to settlement, possibly including netting of instructions and the establishment of final positions for settlement. This will be clarified further below. 6 Settlement is the act of transferring "good and final funds" between two parties.
A Payne NT is settled with finality when the payer can no longer revoke the transfer of funds to the payee and the funds have been delivered unconditionally to the payee. This is the ultimate objective of a payment system. B. Various Types of Risk in a Payment S http://drips. Pits. Gob. PH/iris/PDF/peptidase's. PDF Retail Electronic Payments Systems for Va lee Transfers in the Developing World Bill Manure Department of Anthropology University of California, Irvine wmmaurer@uci. Deed Work in Progress This is a draft concept paper.
You are welcome to cite or quote, but please do not do so without the author's perm session. Comments welcome. Summary A new "payments space" has emerged in the past five to ten years that promises to bring access to funds transfer, banking and financial SE revives to millions of unbaked people in developing countries and in the diasporas that remit funds to them. This payments space is characterized by the I innovative use of new information and communications technologies. This paper summarizes the expel irenic to date of us chi new electronic payments systems.
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