OPERATIONALIZATION OF THE CASHLESS ECONOMY SYSTEM IN NIGERIA. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The world is evolving every day. Gone are the days when communication was limited to face to face, signals or by postage. Today communication can take place between two or more people from any distance in the world through telecommunication or internet or other technological means. But the technological world is not stopping at that rather, new innovations are coming out, making life easier and of course more and more sophisticated.
These innovations as they come makes serious impacts on the way things are being done all over the world and whatever is dictated as the new trend by the technological power house becomes the target of every nation. Thus, the trend of e-payment that began in the United States of America decades ago has become the next big thing for developing countries. For many years, developed country like Canada, United Kingdom, Sweden, France among others, have run their economy trough electronic payment without hitches. Interestingly, a lot of other African countries have keyed into this system, embracing electronic system of payment while dealing with less of cash. Countries like Kenya, Tanzania, South Africa, and Ghana among others have become reference point in the continent in terms of electronic payment system. Kenya for instance had introduced the M-PESA, a small value electronic payment and store of value system that is accessible from ordinary mobile phones. It has been exceptional growth since its introduction by mobile phone operator Safaricom in Kenya in March 2007 and has already been adopted by 9 million customers which is about 40 percent of Kenya’s adult population. Again several electronic payment system has been introduced in Ghana in recent times with the most significant being e-zwich smart card payment system, a national domestic smart card payment system meant to reduce the large amount of cash held out side the banking system. Already it is showing the signs of reversing the trend of majority un-banked population in the country as more people embrace it.
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