Electronic Payment Methods and Profitability of Banking Firms in Nigeria: A Panel Data Analysis

摘要

The study investigated the effect of Electronic payment Methods (EPM) on the profitability of commercial banks in Nigeria. In order to achieve the broad objective, the study specifically investigated the effect of Automated Teller Machine (ATM), Point of Sale (POS) and Mobile Payment (MPAY) on the profitability of commercial banks in Nigeria. A total sample of five (5) banks was considered for the period 2009 to 2015 and the study adopted the Panel Least Squares (PLS) estimation technique as the analytical tool. Data were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin and Annual Reports and Statements of Accounts of the five banks used in the study. Findings revealed that Automated Teller Machine (ATM) and Mobile Phone payment have significant effect on the profitability of commercial banks in Nigeria. However, Point of Sale (POS) has an insignificant effect on commercial banks’ profitability in Nigeria. The study recommended, among others, that commercial banks in Nigeria should sponsor media campaigns in order to boost the awareness on Automated Teller Machine (ATM) payment and Mobile Phone payment methods so as to further increase their profitability.