Abstract:

 Financial technology in the form of electronic payment has influenced greatly both developing and developed economies across the globe. Kenya is moving towards emerging market status and this is mostly attributable to the government’s committed effort towards creating an electronic payment based economy. This paper seeks to evaluate the contribution of electronic payment towards gross domestic product of Nigeria and also assess various sociocultural and technological factors which truncate the full potential of e-payment in Nigeria. Statistical data on several e-payment channels; cheque, Automated Teller Machine, Point of Sales, Web Pay, Mobile Pay, are obtained from the Central Bank of Nigeria. Gross domestic product of the country is also obtained. The variables were analysed using the Augmented Dickey- Fuller Test. It was found that ATM, web pay and POS have a significant impact on the gross domestic product (GDP) of Nigeria while mobile pay and cheque have an insignificant relationship. It also considers the various challenges of e-payment systems in Nigeria and recommends that electronic payment systems should invest in airtight security framework to protect private information of users and that the government must also sensitive uninformed Nigerians on the convenience and security of e-payment transactions as well as provide the necessary policy and technological infrastructure to facilitate e-payment operations in the country.