Mr. ELECTRONIC PAYMENT SYSTEMS AND CUSTOMER SATISFACTION IN THE NIGERIAN BANKING SYSTEM

Abstract

Abstract

This study explores the impact of electronic payment systems on customer satisfaction in the Nigerian Banking System, specifically targeting undergraduate students. The research has two primary objectives: assessing satisfaction levels with ATM, Point of Sale (POS), and mobile applications payment systems, and identifying the factors that influence student satisfaction. The study draws theoretical guidance from the Disconfirmation Theory, which links satisfaction to perceived performance relative to expectations, and the Innovation Diffusion Theory, which focuses on the adoption and acceptance of new technologies. Data collection involved a random sampling technique, with 384 undergraduate students selected from a population of 9,500 at Lead City University. A survey questionnaire was administered to gauge satisfaction levels with the electronic payment systems. Statistical analyses, including mean, simple percentage, and Chi-square tests, were conducted to examine variable relationships. The findings reveal that improvements or modifications to the ATM payment system directly impact customer satisfaction, supported by rejecting the null hypothesis with a χ2 value of 108.9 and a p-value below 0.05. Similarly, enhancements to the POS payment system significantly affect customer satisfaction, with the null hypothesis rejected based on a χ2 value of 103.5 and a p-value below 0.001. Additionally, the use of mobile applications for financial transactions has a significant influence on customer satisfaction, demonstrated by rejecting the null hypothesis with a χ2 value of 93.2 and a p-value below 0.001. Most undergraduate students express high levels of satisfaction with the ATM, POS, and mobile applications payment systems. Key factors that impact their satisfaction include availability, positive experiences, speed, convenience, user interface, and security. In conclusion, this study highlights the positive impact of electronic payment systems on undergraduate students' satisfaction in the Nigerian Banking System. To further enhance student satisfaction, it is recommended to focus on improving usability, technological advancements, and user interface. Additionally, suggestions include enhancing customer support services, conducting regular feedback surveys, fostering collaboration with technology providers, and continuously updating and improving mobile payment applications.