Electronic Payment Systems and Customer Satisfaction of Commercial Banks in Karu Local Government, Nasarawa State

Abstract

The Contributions of the financial sector to growth of an economy in undeveloped, developing and emerging markets have been given astounding remarks in the literature. In Nigeria, the general consensus of studies is that the financial sector propels economic growth through various channels. However, the conclusion as to whether the introduction of electronic payment platforms as an innovation strategy impacts customer experience is still contentious. The crux of this study therefore, is to investigate the effect of electronic payment systems on customer satisfaction of
quoted deposit money banks in Karu Local Government. Specifically, the study examined the
combined effects of automated teller machines (ATM) and point of sales (POS) on customer
satisfaction of selected banks operating within Karu L G. The study adopted a descriptive survey research design approach for the purpose of achieving the objectives of the study. The population of the study comprised of all the customers of the twelve (12) quoted deposit money banks in Nigeria with branches in Karu L G. While the sample size of 300 customers was conveniently, determined by randomly selecting 50 customers from 6 operational banks in the area covered by the study. Primary data was collected through a four-point likert scale questionnaire and the reliability of this instrument was measured using Cronbach Alpha. The study adopted the use of multiple regression technique to analyse the data and the result revealed that both ATM and POS have significant effect on customer satisfaction. Based on the findings, it was concluded that electronic payment platforms have meaningfully, influenced customer’s satisfaction in the area covered by the study. It was therefore, recommended based on the findings and conclusion that banks should improve their collaborations with network providers in order to reduce the number of failed electronic transactions.