Electronic Payment Systems and Customer Satisfaction in the Nigerian Banking Sector: Evidence from Western Nigeria
Keywords:
Service Quality; User Experience; Financial Access; E-S-QUAL; Banking TechnologyAbstract
Electronic payment systems have become increasingly critical in contemporary banking. However, their impact on customer satisfaction remains inadequately understood within sub-Saharan African contexts, particularly regarding the specific service quality dimensions that drive satisfaction outcomes. This study examines how attributes of electronic payment systems influence customer satisfaction in Nigerian commercial banking, using E-S-QUAL theory, integrated with institutional trust frameworks, as its theoretical underpinning. Using purposive sampling, data were collected via a questionnaire survey from customers of three deposit money banks (Access Bank, Eco Bank, and Zenith Bank) in Ekiti State, Nigeria. The data were analysed inferentially, and results demonstrate that system efficiency is the strongest predictor of customer satisfaction (β = 0.633, p < 0.001), followed by availability (β = 0.566, p < 0.001), while security and privacy protection have a moderate positive effect (β = 0.201, p < 0.05). Contrary to theoretical expectations, system reliability exhibited a negative but non-significant association with satisfaction (β = -0.011, p = 0.87). The model explained 57% of the variance in satisfaction, indicating substantial explanatory power while highlighting unmeasured contextual factors. The findings support E-S-QUAL’s applicability in emerging-market banking contexts and suggest that Nigerian financial institutions should prioritise system efficiency and availability to enhance customer satisfaction.
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