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Cashless Policy and Financial Inclusion in Nigeria

Author

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  • Gbalam Peter Eze

    (Department of Banking and Finance, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria)

  • Dumani Markjackson

    (Department of Banking and Finance, Federal Polytechnic, Ekowe, PMB 110, Yenagoa, Bayelsa State, Nigeria)

Abstract

This study examines the impact of cashless payment systems on financial inclusion in Nigeria. This was aimed at ascertaining the level of financial inclusion caused by the cashless policy. The study was hinged on the theories of technology acceptance and diffusion of innovation. Thus, primary data was sourced and collated via structured questionnaires administered to 117 respondents and analyzed using simple percentages and presented using graphs. The data was further estimated using the ordered probit regression technique. The results indicate that nearness of financial products and service outlets to rural settlements, ease of digital financial transactions and reduced visits to banking halls aided by access to cashless payment mediums has enhanced financial inclusion in Nigeria. It also emerged that efficiency of cashless payment channels does not significantly reduce the use of financial products and services, hence financial inclusion. Furthermore, the results indicate that the desire to own bank account and excessive digital payment charges has a positive but insignificant influence on financial inclusion in Nigeria. The study concludes that cashless payment channels have enhanced equal access and use of financial products and services in Nigeria. The study recommends that the adoption of advanced financial technology (Fintech) that integrate all the attributes of the user groups would enhance user friendliness and further accelerate the penetration and use of bank financial products and services to rural settlements.

Suggested Citation

  • Gbalam Peter Eze & Dumani Markjackson, 2020. "Cashless Policy and Financial Inclusion in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(2), pages 201-207, February.
    • Handle: RePEc:bjc:journl:v:7:y:2020:i:2:p:201-207
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    References listed on IDEAS

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    1. Kabakova, Oksana & Plaksenkov, Evgeny, 2018. "Analysis of factors affecting financial inclusion: Ecosystem view," Journal of Business Research, Elsevier, vol. 89(C), pages 198-205.
    2. Zhang, Yanying & Zhang, Gaiyan & Liu, Liuling & De Renzis, Tania & Schmiedel, Heiko, 2019. "Retail payments and the real economy," Journal of Financial Stability, Elsevier, vol. 44(C).
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