Cashless Society Implementation in Developing Countries: Issues and Prospect

Authors- Dr. Ugah J. O., Oriko B. C., Amadi K.E., Oguzor R. N

Abstract-The implementation of a cashless society in developing countries presents both significant opportunities and complex challenges. This transition involves replacing physical cash with digital payment systems, which promises enhanced financial inclusion, improved economic efficiency, and reduced corruption. However, developing countries face unique barriers such as inadequate digital infrastructure, low financial literacy, limited internet penetration, and concerns over cybersecurity and privacy. This study is to investigate the effects, challenges and prospects of cashless policy on the Nigerian Economy. The objectives of the study are to examine: the effects of cashless policy, the challenges of cashless policy and the prospects of cashless policy on the Nigerian economy. The hypotheses of the study are: there are no significant effects of cashless policy on the Nigerian economy: there are no significant challenges of cashless policy on the Nigerian economy, and there are no significant prospects of cashless policy on the Nigerian economy. In carrying out the study, primary data was used which was sourced through questionnaire. A total of five hundred and eighty-three questionnaires were passed and after careful monitoring and supervision, there was hundred percent retrieval and used for the analyses. In analyzing the result, simple frequencies, percentages and t-statistics were used to analyze the research hypotheses. From the analyses, it was found that cashless policy has positive effect on the growth of Nigerian economy. Also, respondents were of the opinion that the introduction of cashless banking in Nigeria has increased the cost of e-payment transactions as well as the normal bank charges as they are required to pay for various e-cards aside indirect payment for technologies acquired to run cashless business venture by the banks. It was concluded that, in as much as the policy is good, there should be a conscious efforts at improving on information and communication infrastructure that will enhance speed in service delivery, internet security framework to check online fraud so that the public can be assured and protected against cyber attacks and fraud.

DOI: /10.61463/ijset.vol.13.issue1.238