FACTORS AFFECTING ADOPTION OF POS TERMINALS BY BUSINESS ORGANISATIONS IN NIGERIA(A CASE OF DELTA STATE)

CHAPTER TWO

LITERATURE REVIEW

INTRODUCTION

Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.

Precisely, the chapter will be considered in three sub-headings:

• Conceptual Framework
• Theoretical Framework
• Chapter Summary

2.1 CONCEPTUAL FRAMEWORK

Historical evolution of financial payments systems

Historically, societies, world over had used various means of exchange before the cash and cheque system. Over decades, payment systems have passed through a lot of transformation. For instance, before 700 BC when cowries were introduced in Asia Minor, barter remained the only medium of exchange. Trade was carried out by goods being exchanged for other goods before money came to be used. Trade by barter encountered some serious problems such as the problem of double coincidence of wants, absence of common standard of value, problem of storage, indivisibility of some goods,and impossibility of standard of differed payment (Taiwah, 1978). In view of all these problems, money was developed as a medium of exchange. However, with the introduction of coins and notes, the era of cash as payment system emerged. In A.D. 1000, first notes appeared in China. This was later followed by the use of cheque as written instructions to transfer precious metal coins from one holder to another. Thus, the period of barter was later succeeded by another system, which featured the use of multiplicity of coins and commodity money such as metal coins, cowries, brass, and copper bracelets (Nnanna and Ajayi, 2005). According to Ovia (2005), the notes and coins issued by the Central Bank of a country constitute the currency or cash for that country. Currency is made up of a country’s notes and coins. It is a means of payment that a debtor can legally compel his creditor to accept. In Nigeria and other West African countries, greater use is made of currency than cheques or other means of exchange. The opposite is the case in the advanced countries like Britain, USA, Germany, and France where the use of cheques accounts for about 90% in all business transactions (Ovia, 2005). It is usually argued that “money” is what money does. In this sense, other instruments of payment like cheques, postal orders, money orders, bills of exchange and postal stamps are money. These are, however not “true money” in Nigeria since they cannot be spent everywhere in their present forms. The motivation behind the excessive desire to hold money, that is, to keep one’s resources in liquid form instead of investing it by Nigerians is of interest to economists. This is because holding money involves loss of the interest it might otherwise have earned if it were invested. Another consequence of holding liquid money may be looked at from the security perspective. Among advanced reasons for this practice were ignorance, illiteracy, and lack of appreciation of the merits of digital payment instruments such as debit card which does not involve the use, touch, and transfer of liquid fund (Ovia, 2005). Social miscreants and fraudsters over the years have studied Nigerian financial system that is mainly cash-based and thus identified banks, financial institutions, companies, churches, mosques and rich individuals as targets. In view of the above, this study seeks to evaluate the challenges to the efficient use of point of sale terminals in Nigeria.

The Mechanics of the Cashless Policy in Nigeria

The cashless initiative is an alternative to cash transactions through electronic means using information and communications technology (ICT). Ndifon and Okpa [Ndifon E 2014] maintain that the future of all business, particularly those in the service industry lies in information technology. This technology as far as cashless policy is concerned is not only computer. Information technology for banks takes different forms; computerization of customers’ accounts and account information storage and retrieval; deposit and withdrawal through Automated Teller Machines (ATMs); and networking to facilitate access to accounts from any branch of the bank, bio-metrics, use of mobile phones to consummate transactions, internet, and websites. It also involves the use of credit cards, debit cards, mobile pay and many other forms of payment, but always only in digital ways, as paper currency does not come into play. Babalola [Babalola 2008] identified seven different electronic payment channels in Nigeria, Automated Teller Machines (ATM), points of sales terminals, mobile voice, web, inter-bank branch and kiosks. Ogbuji et al. [Ogbuji 2012] noted that ATM allows a bank customer to conduct his/her banking transactions from almost every other ATM machine in the world. In this type of economy, the amount of cash in one’s wallet is not relevant. One can pay for purchases by any one of the forms of transactions in cashless economy which includes the use of credit cards or bank transfer. Cashless economy is enhanced by e-finance, e-money, e-brokering and e-exchanges Moses-Ashike, [Moses 211]. Central Bank of Nigeria introduced Point of sale and gave the guidelines in 2011 with maximum service commission of 1.25% or a maximum of NGN2000 and limiting the role of connecting and maintaining POS devices only to licensed Payment Terminal Service Providers (PTSPs). These POS terminals serve like the Automatic Teller Machines (ATM) across commercial points in the country. At the completion of a transaction and the value ascertained, the amount is entered into a POS terminal into which the electronic card has been slotted. The cash equivalent of the amount will be automatically transferred from the payer’s account into the account of the payee’s account. In Nigeria today, private enterprise, religious bodies, educational institutions and other service providers such as hotels, transport firms etc. have embraced the POS option in their transactions. Users are issued with a card (the electronic purse). The electronic purse is topped up using revaluation terminals. There are different types of terminals: coin & note, credit card and payroll deduction terminals. The cards are simply inserted into the revaluation terminal and certain programmed instructions are followed, and money is added onto the electronic purse. This can then be used to pay for goods/services by inserting them into the POS terminals. When the card is inserted into the POS, and the transaction amount entered, the reader reads the amount and is quickly deducted from the e-purse (the card) (Akhalumeh and Ohiokha, 2011). It can be used to pay for school fees, shopping bills, utility bills and others bills. The aspect of cashless policy streamlining the permitted limits of cash transactions for individuals and institutions beyond which charges apply cover all accounts types especially savings and current with exception of government revenue generation; primary mortgage institutions, microfinance banks and embassies’ accounts. The policy clearly states that the cash withdrawal and deposit limit for individuals is N500, 000 and N3,000,000 for corporations, although the policy does not prohibit withdrawals above the stipulated amounts, but such transactions will be subjected to cash handling charges. The interesting thing about the way banks are implementing this policy is that at the end of each transaction, they send alert to the customer indicating the amount withdrawn and the balance. Banks have equally made available different types of cards to enhance the electronic transactions which consist of Verve, Master, Platinum cards; some customized means of making payments include: pay pal and payoneer and so many others. It is good to mention that these e- transactions are not without charge. This policy facilitates fund transfer, thereby reducing time wasted in bank(s). The transactional ease and other advantages of cashless economy may explain its growing popularity. For instance, Wizzit, a fast growing mobile banking company in South Africa has over three hundred thousand customers across South Africa. Likewise, M-PESA was introduced in Kenya as a small value electronic system that is accessible from ordinary mobile phones. It has experienced exceptional growth since its introduction by mobile phone operator (Safaricom) in Kenya in March, 2007 and has already been adopted by nine million customers, which is about 40% of Kenya’s adult population. The success of M-PESA has been attributed to its flexibility enabling users to carryout financial transactions across long distances with their cell phones, thereby reducing their travelling costs, eliminating the risks of carrying cash and also avoiding most banking charges (Akintaro, 2012). In Sweden, it is almost impossible to find a shop that does not accept electronic payment cards, and most locals almost never carry any cash on them.

Electronic payment (e-payment)

An effective paymentsystem is seenas catalyst forsocio-economic development of nationsbecause it enablesusers to makepayments for socio-economic goodsand/or services when theneed arises. Supportingthis, Roozbahani, Hojjati andAzad (2015) noted that payment system is seen as a mechanism that serves as a vein through which money flowto different socio-economic actorsand allow themto transfer money from one accountto another. Gupta andYadav (2017) notedthat the evolutionof payment system hassignificantly affected thesales of goodsand services asthe means of settlementfor their valuehas now improved. Theauthors also notedthat with the advancement in technology, payment system available to users has expanded to include electronic payment system (e-payment).E-payment according to Torabi, Ghorbani, Bagheri and Tarighi (2011), is concerned with the transfer of an electronic value for payment normally from a payer to a payee through any available e-payment platform. Moertini, Athuri, Kemit and Saputro (2011) opined that e-payment is a payment service that uses information and communication technologies, including cryptography and remote communication networks to facilitatethe settlement offinancial bills. Roozbahani, Hojjatiand Azad (2015)opined that e-payment has to do with the settlement of financial bills or obligations using electronic communication technology such as computer, mobile phone and ATM machine.Some common e-payments channels enlisted on the Central Bank of Nigeria’s e-payment statistic as at the end of 2019 are ATM, POS, Internet banking, Mobile money, NIP, NEFT, e-BillsPay, Remitta, m-Cash, Central pay and Intra-bank-e-payment (Central Bank of Nigeria, CBN, 2019). Of all these e-payment platforms, the most frequently used by allcategories of customersin Nigeria (educationand uneducated) areATM, POS, Mobile banking apps, NIP, internet (web), e-Bills Pay, and Remitta as shown in the CBN e-payment statistics based on volumeof transactions on each ofthese platforms (CBN,2019).Consequently, inthe present studythe coverage ofe-payment platforms was limited to ATM, POS, internet and mobile banking apps.

Internet Banking

One important e-paymentplatform that has received acceptance from enlightened and technological savvy banking customers is the internet banking. Internet banking according toChiemeke, Evwiekpaefe and Chete(2013) has to do with the provision of banking servicesover theinternet. Mohsen,Najma and Mohommad(2015) defined internet banking as a banking channel that provides bank’s customers with a wide range of financial and non-financialservices through the bank’s website. Richard (2015) defined internet banking asthe means bywhichcustomers transact businesswith their banks using the banks’ websites on the Internet network. Abbasi and Kamran (2017) noted that unlike in the developed countries, banks’ customers in the developing countries have not fully embraced internet banking due to difference in educational background, access to internet connectivity, personal experience and social-cultural backgrounds. One basic featureof the internet bankingis that itgives bank access todistance customers. Zhengwei (2012) noted that internet banking enables banks to gain access to customers outside their area of operation as long as they are internet users, hence reduced costsassociated with marketingas well asimproved competitiveness. Mohsen,Najma and Mohammad (2015)noted that banking throughthe internet hasbecome strategic means by which both customers and banks obtain higher efficiency, control of operations and costreduction by substitutingpaper based andlabor intensive methodswith automated processes yielding to higher productivity and profitability. Banks in Nigeria nowoffer a wide rangeof services through internet banking.According to Adekannbi (2018), internetbanking services offeredby Nigerian banksinclude electronic funds transfer, account balance enquiry and statement, automatic payroll deposits, bill payments, airtimepurchases, cheque confirmation,salary advance request, investment and loans, standing order, foreign exchange transactions and feedback to customers. Nevertheless,Zhengwei(2012) discovered inthe study offactors that affect customer’s satisfaction of internet banking that privacy, reputation and price are key factors affecting customer satisfaction in the internet banking service. Hence, Abbasi and Kamran (2017)noted theneed forcontinuous research onhow customers feelabout internet banking consideringthe huge investments ininternet infrastructure madeby banks adopting thisplatform because failureof customers touse such platformmay translate to losses from such investments.

Point of Sales Terminals (POS)

The term Point of sale (POS) device most commonly refers to the in-store systems where customers pay merchants for goods and services. A POS is an electronic device capable of processing credit/ debit cards typically issued by banks (Akintola, Akinyede&Agbonifo, 2011). These devices are deployed at commercial outlets where they enable the merchant to collect cards as a means of payment for their goods or services. According to Rouse (2011), a pointof-sale (POS) terminal is a computerized replacement for a cash register. Much more complex than the cash registers of even just a few years ago, the POS system can include the ability to record and track customer orders, process credit and debit cards, connect to other systems in a network, and manage inventory. Increasingly, POS terminals are also Web-enabled, which makes remote training, and operation possible, as well as inventory tracking across geographically-dispersed locations. While some POS transactions are in the form of cash, many of these payments are made by customers swiping their cards through a card reader. These card readers may be stand-alone devices but modern POS systems, especially those in larger retailers, are all-in one system which can handle a variety of customer transactions such as sales, returns, gift cards and promotions. POS is one of the e-payment systems introduced in Nigeria to further the course of cashless policy. POS as an electronic payment device enables individuals to make purchases with their electronic cards. POS accepts ATM cards for payment of goods and services. The card stores account information on microchips and this microchip contains a purse in which monetary value is held electronically. The card can be used to make purchase of goods and services online, in supermarkets, shopping malls, and other market places. POS allows cardholders to have a realtime online access to funds and information in their bank account through debit or cash cards. POS deployment is projected to hit 350,000 in 2014 from 120,191 in 2013, reflecting growing acceptance of POS and electronic card payments. This is because between 2012 and 2014, it was found that the volume of transactions conducted via POS increased by 183% compound annual growth rate (CAGR) suggesting significant adoption and usage of POS (NIBSS, 2015).

Benefits of POS

The CBN had disclosed that N150 billion is used to produce, store, transport and protect the Naira, annually (CBN, 2009). First, Cash costs money to produce (It sounds rhetoric, but it is not). To print cash, there is the need to invest in machineries and infrastructures, money inks, security features on cash, and personnel. All of these cost money. Cash costs money to handle or carry, from the point of printing by the CBN to banks and vice versa, from one bank to another bank, from bank to customer and vice versa, from customer to customer, and at different storages (Vaults, Boxes, and wallets) there is a constant risk of loss or damage, and for that, provision is made for securing cash at different levels, both by the Government, banks, and individuals. Since it is easier to monitor electronic transfers than cash transactions, electronic alternatives to cash helps the authorities keep an eye on the movement of money. Specific benefits of using POS terminals in organizations however, includes: Improved efficiency minimizes cash handling and aids reconciliation, increase in sales as Merchant have access to both cash and card-carrying customers, instant confirmation of payment for goods, reduces cost of Personnel and equipment for handling cash receipts, reduces exposure to loss due to armed robbery or pilferage by employees, eliminates the inconvenience of cheque confirmation and clearing period.

Challenges in the Adoption of POS

Acquisition/total cost of ownership acquisition is a critical factor affecting the proliferation of POS terminals in the economy. This is based on the analyses of the study of the different stakeholders that currently bear the cost of ownership/acquisition of the POS deployment and maintenance in the country (E-PPAN, 2010). For the entire life cycle of the POS machine, the cost of procurement of the device is just 32.5% of the entire cost spent throughout the life cycle of the device, the remaining cost which is a later chunk of the cost is spent on maintenance, servicing, sustaining reliability of the service on the POS machine. In addition, every new technology into the market has to go through a proper introductory process for the populace to be able to adapt and then benefit from the use of such technology. The POS device as a technology has not been properly introduced to the Nigerian public (Adeoti, 2013). There is a lack of basic education and awareness creation about the POS. This is unlike the ATM machine that is widely appreciated because of its well-executed introduction and enlightenment programs. Many of the consumers do not even know what POS means, what it stands for or what it looks like and what its functions are. There are also issues of fraud, fear of charge, lack of trust in the Nigerian system Inter connectivity issues are also believed to affect the adoption of POS (Adeoti & Oshotimehin, 2011). These challenges create the inability of cardholders of all issuers to transact business with all POS devices, notwithstanding the acquirer.

Challenges to the efficient use of point of sale (POS) terminals in Nigeria

The role and importance of efficient payment systems has been closely monitored and promoted by monetary authorities in all countries. However, the Nigerian payment system that is cash-driven cannot and has not guaranteed the much needed efficient and effective transactions required for a sustainable economic development. Among the problems often associated with cash transactions are armed robberies, use of counterfeit bank notes, frauds, inconveniences of carrying large quantities of currency notes, long period of waiting in bank halls, frequent trips to banks, frequent printing of bank notes (Nnanna and Ajayi, 2005). Most economies of sub Saharan Africa countries is cash based. This is often associated with high cost of cash management in these countries. For example in Nigeria, over 90% of funds circulate outside the banking sector (Ojo, 2004; Ovia, 2005). According to Central Bank of Nigeria (CBN, 2011), the cost of cash management in 2009 was N114.6 billion and grew to N135 billion and N166 billion in 2010 and 2011 respectively. The apex institution projected that the cost of managing cash will hit N192 billion by 2012. These cost arises from frequent printing of currency notes, currency sorting, cash movement, keeping large amount of cash, security cost of checking high incidences of robbery and burglaries to mention a few. This has made Nigeria cash-dependent, cash loving and cash carrying society, as an average Nigerian businessman prefer cash transactions. Reliance on cash based economy has however been found to be risky and cumbersome because money outside the banks cannot be subjected to regulatory and operational procedures, and the ability of monetary policy to achieve set objectives in the presence of sizeable currency out of Bank (COB) is therefore limited. This cash carrying character of the economy is also responsible for large pool of money in the hands of the unbanked citizens. In order to reduce the volume of cash in circulation and reduce the risk of going about with cash, the CBN introduced electronic payment system such as payment cards (smart card) and paper- based instrument to the country. This has encouraged e-payment initiatives such as the establishment of switching companies that facilitate interconnectivity, introduction of payment instruments such as point of sale (POS) terminal and automated teller machine (ATM) which gave rise to significant growth in the use of electronic payment systems (Salimon, 2006). Speculation however exists on the possible challenges to the use of the payment system. This concern necessitate this study which is aimed at providing information on possible challenges to the use of POS terminals and the characteristics of its consumers that could influence such challenges. Generally, electronic payment system (e-Payment) refers to an electronic means of making payments for goods and services procured online or in supermarkets and shopping malls. It enables websites and shopping malls to securely process transactions in real time. It operates on a smartcard that stores information on microchips. The microchip contains a purse in which monetary value is held electronically. The electronic payment system takes several forms. This payment system provides a better audit trail than transactions that involve physical cash and thus reduce the amount of currency in circulation. The CBN strategic plan on payment system is to ensure that a larger proportion of currency in circulation is captured within the banking system, thereby enhancing the efficacy of monetary policy operations and economic stabilization measures. While there is volume of studies on e-payment system such as ATM, there has been dearth of literature on POS especially factors influencing its adoption among the consumers. In spite of the practice of modern payments system in the world with their attendant advantages for both consumers and financial institutions, it has not become mainstream activities in Nigeria (Kolodinsky, 2004). Nigerian consumers and banks apparently still regard “in-person banking” as a more important method for money transactions. This cash-based payments system is responsible for the N545.8 billion currently in circulation (CBN, 2004). This represents about 90% of the total volume of cash in circulation compared to 4 and 9% in the UK and the USA respectively (Ovia, 2005). Despite the overwhelming superiority of electronic payment options, business–to– business transactions are still pre-dominantly consummated in Nigeria with the use of cash and to a limited extent bank’s cheque or certified cheque. The unintended social and economic costs (risks and inconveniences) associated with cash transactions are alarming. The most obvious has to do with insecurity (considering daily loss of lives from the activities of fraudsters, and armed robbers) as enhanced and encouraged by cash payments system. There is also the inconvenience of carrying larger volume of currency notes, the use of counterfeit banknotes, time loss as a result of long period of waiting and making frequent trips to banks. The monetary authorities also bear the high cost of printing bank notes due to the short life cycle of notes, and the cost of moving large amount of cash from banks to banks and across the country. Overdependence on cash for transaction also implies that much cash is held outside the banking system, which naturally reduces the capacity of banks to lend to the productive sectors of the economy. It is for some of these reasons that a forward-looking economy should seriously think of embracing the modern payments system, such as credit card, electronic money, electronic fund transfer, Automated Teller Machine (ATM) and debit card. Debit card is particularly important in a growing economy as Nigeria. For instance, debit card will promote better services to customers, because it is a very fast and speedy means of financial transaction. It is more efficient than cash, and, there will be drastic reduction in the printing of bank notes. It will remove the high cost of handling and printing notes. It will also increase profitability due to considerable reduction in overheads and most importantly, it will enhance security of life and property from armed robbery incidences that have become a common phenomenon in the country. Debit card will also make it possible for more money to be available to lend to the productive sectors of the economy. This will bring about positive impacts on economic growth and global competitiveness. However, to ascertain the enumerated benefits of this payment instrument, there is a need to analyze possible challenges to the efficient use of POS terminals determine. In fact the global trend in the use of electronic payment system, particularly the growing popularity of ecommerce calls for studies such as this. However, the empirical studies that are related to the use of debit card, as a payment instrument are foreign researches conducted in advanced countries of the world.

2.2 THEORETICAL FRAMEWORK

This study is premised on four important theories, in relation to adoption and usage of POS terminals. They include the monetary theory, the technology acceptance model, Unified Theory of Acceptance and Use of Technology and Resource – Based Theory. Monetary theory refers to a set of ideas about how monetary policy should be conducted in an economy (Walsh, 2010). The theory suggests that nations can benefit from different monetary policy, depending on the uniqueness of their resources and limitations. This implies that factors like size of the money supply, price levels and benchmark interest rates should be considered before policies are introduced. The technology acceptance model (TAM) is an information systems theory that describes how users accept and use a technology that will stimulate economic growth. Proponents of this model believe that “……because new technologies are complex and an element of uncertainty exists in the minds of decision makers with respect to the successful adoption of them, people form attitudes and intentions toward trying to learn to use new technology prior to initiating efforts directed at using. Attitudes towards usage and intentions to use may be ill-informed or lacking conviction or else may occur after preliminary strivings to learn to use the technology evolve. Thus, actual usage may not be direct or immediate consequence of such attitudes and intentions” (Bagozzi, Davis &Warshaw, 1992:672). The model suggests that the acceptability of an information system is determined by two main factors: perceived usefulness and perceived use of ease. The former refers to the degree to which a person believes that the use of a system will improve his performance while the latter refers to the degree to which a person believes the use of a system will be effortless (Attuquayefio, Achampong&Aryeetey, 2014). The implication of these theories is that before policies are introduced, several factors that will either buttress or impede its success should be considered.

Unified Theory of Acceptance and Use of Technology

Venkatesh, Morris, Davis and Davis (2003) introduced the Unified Theory of Acceptance and Use of Technology. UTAUT provides a comprehensive amalgamated theoretical underpinning explaining the application of ICT based strategies in an organization. The theory explains that the successful application of technology based strategies in an organization is based on four major aspects: “performance expectancy (P.E), effort expectancy (E.E.), social influence (S.I.), and facilitating conditions (F.C)” (Venkatesh et al., 2003). According to the theory, P.E pertains to the level that applying the technological strategy benefits customers in performing particular transactions. E.E is the extent of simplicity that the strategy grants customers in accessing products/services. S.I is the customers’ perception of the benefits of the technology to others, while F.C are the perceptions of the customers on the resources and assistance provided for them in using it (Brown & Venkatesh, 2005). The theory further alleges that the influence of these four aspects on the successful application of the ICT based strategies is further moderated by four variables including: age, gender, experience and voluntariness to use the technology. Importance of UTAUT in this research is that it helped in assessing ability to meet the four major aspects alleged in the theory as critical for the successful application of ICT based strategies. Furthermore, insights from the theory helped to interrogate how these aspects in the case of electronic banking strategies influence organization’s competitive advantage.

Resource – Based Theory

Barney (1991) introduced the resource based theory (RBT) but its original ideas originated from Penrose (1989). According to the theory, a firm’s competitive advantage is primarily based on the uniqueness of its resources, processes and capabilities, which enables the firm to make good use of any market opportunity and stay ahead of competitors. However, according to Grant (2001), competitive advantage of the firm cannot be achieved through a single resource or process, but it is attained through a right mix of resources, processes, strategies and capabilities in the firm. Barney (1991) underscores that for a firm to innovatively transform its competitive advantage from short term to a sustainable long-term competitive advantage, it must ensure that it possesses diverse resources that are mobile. According to Johnson et al. (2008), in RBT, competitive advantage is a product of interrelation between the organization’s internal resources and strategic behavior, giving the firm unique capabilities which are not easily duplicable by other firms. Importance and application of RBT in this research was to provide insights which helped in assessing application of EBS by banks to achieve competitiveness. That is, whether the diverse electronic banking strategies applied by the banks enables the banks to acquire competitive advantage or not. It also helped to interrogate how each of them contributes to the banks’ competitive advantage and how the mix of different electronic banking strategies affects the banks’ competitiveness.

2.3 Empirical Review

Many authors have in one way or the other investigated the introduction of electronic devices in making payments for transactions, their adoption and implications on the economy in both developed and developing countries. Adeoti (2013) analysed the challenges to the efficient use of point of sale (POS) terminals in Nigeria. The finding of this study showed that that the most challenging factor to the efficient use of POS is network failure, frequent power outage; limited numbers of POS per merchant store where they are available, security of communication over the network and unavailability of the POS at all merchant stores. In the works of Taylor and Todd (1995) and Gefen and Straub (1997), it was found that gender has a direct influence on adoption of technology with men and women having different rates of computer technologies adoption. Putrevu (2002) used descriptive survey to ascertain the origin of technology and information difference between man and woman. He found out that difference in information processing exists between men and women and as such both genders will have different rate of technology acceptance. Ekwueme, Egbunike&Okoye (2012) studied the operational efficiency of electronic banking in Nigeria and found out that the practice of e-banking in Nigeria is significantly related to increased operational efficiency of Nigerian banks, though the security problem was found to exist. They however suggested that a forward-looking economy should embrace the modern payments system, such as credit card, electronic money, electronic fund transfer, Automated Teller Machine (ATM) and debit cards in its entirety. Another definitive study on the effects of POS deployment by Dion (2003) analyzed the impact of POS by using a true control methodology that demonstrated the difference between a store with POS technology and one without. This study reported an amazing 29% increase in sales and a 34% increase in gross profit in the store with a POS system. The study revealed that a store can increase its net profit by at least ten percent within a year of deploying the technology and fully using it. This would translate into a substantial return on investment as the majority of independent retailers spend about two percent of sales to acquire the technology. More recently, Omotayo (2015) investigated the factors affecting adoption of POS by organisations in Lagos and Ibadan metropolis, Nigeria using the Technology Acceptance Modelas the theoretical framework. The results reveal that subjective norms and perceived ease of use have significant relationship with adoption of POS machine by the organisations. However, the characteristics of the organisations, image and perceived usefulness do not have significant relationship with adoption of POS. In summary, while some researchers have attempted to investigate the factors affecting the adoptability and usage of POS terminals. It is however important to note that these factors might not cut across all industries.

CHAPTER SUMMARY

In this review the researcher has sampled the opinions and views of several authors and scholars on POS terminal and its adoption by business organization. The works of scholars who conducted empirical studies have been reviewed also. The chapter has made clear the relevant literature.