Consumer Payment System and the Challenge of Confidence in National Payment System of Developing Countries: A Case Study of Nigeria

Abstract

Given the emerging global financial order which makes it imperative for consumer payment systems to elicit strong consumer confidence towards sustainable national and international financial system; the paper examines confidences in consumer payment systems of developing countries with particular focus on Nigeria. Using randomly-selected samples of consumers across the Nigerian banking industry, the study examines the confidence level in Nigeria consumer payment system in terms of how the system guarantees consumer service and convenience; and how it is free of fraud and other forms of unethical practices. The study indicates that the Nigerian consumer payment system is fraught with all manners of unethical practices that have reduced confidence level. It observes that low level of consumer confidence in Nigeria’s banking system have serious implication for effectiveness and support for sustainable national consumer payment system. The study concludes by identifying ways in which strong consumer confidence can be achieved in the Nigerian consumer payment system.

DOI: 10.5901/mjss.2015.v6n2s1p568