vii. Inadequate securities around the ATM location: most ATM locations are not secured thereby making it easier for fraudulent persons to carry out their fraudulent activities without any arrest. Computer hackers also use the porous security system to steal data by breaking the codes or passwords. viii. Encouragement of excessive withdrawals: customers can use their cards to effect withdrawals as many times as possible, even on weekend and during public holidays. They can even make impulse withdrawals while attending a ceremony with the use of their credit cards.
BENEFITS OF CASHLESS POLICY
1. Faster transactions through the reduction in a queue at the banking halls: It has been proven from time to time that queue at point of sale terminals has been reduced which leaves much time for employees to enjoy their break, there has been an improvement in the speed of rendering banking services
2. Improving Hygiene: it has eliminated bacterial spread through the handling of notes and coins from one individual to another.
3. Increased Sales: it has been demonstrated that with the introduction of cashless policy, there has been an increase in sales by 20%. Vending and catering purchases are often dictated by the amount of loose balance we have in pockets. With the introduction of cashless policy, this is never a problem; the value on the card is available 24hours and 7days a week
4. Cash collection made simple: time spent on collecting, counting and sorting cash is eliminated. The cashless system offers a choice of top-up options including payroll deduction, credit and debit cards. Removing all the cash from your site removes the security issues relating to cash handling significantly and reduces the risk of vandalism and theft from your vending and catering points of sale. A payroll loader, where the money is transferred from your salary to your smart card, or a credit card, where money can be loaded from Access, Visa or Master card directly to your smartcard offers you and your customers a truly cashless system.
5. Managing staff entitlements: free vends, corporate cash, royalty, and hospitality are all entitlements that can be programmed into the card, this can be refreshed daily, weekly or monthly while the card can be configured so that any unused allowance is accumulated depending on the client’s request. In some instances, it may be necessary to charge different tariffs for visitors and staff.
6. Reduction in cash circulation: a cashless system prevents too much cash in circulation thereby curbing armed robbery and cash-related crime. Benefits to the Stakeholders Having considered the benefits of the cashless policy generally, the advantages of the policy to stakeholders cannot be overemphasized. A variety of benefits are expected to be derived by various stakeholders from an increased utilization of e-payment which includes:
i. For consumers; increased convenience, more service options, reduced risk of cash- related crimes, cheaper access to (out of branch) banking services and access to credit
ii. For Corporations; faster access to capital reduced revenue leakage, and reduced cash handling costs.
iii. For Banks; efficiency through electric payment processing, reduced cost of operations and increased banking penetration (Oyetade and Ofoelue, 2012)
iv. Benefits to the economy; through the system, users can also pay utility bills, school fees, hotel booking, house rents, among other transactions, using a mobile phone device
v. For Government; increased tax collection, greater financial inclusion, increased economic development. The government will also benefit from the cashless policy in the area of adequate budgeting and taxation, improved regulatory services, improved administrative processes (automation), and reduced cost of currency administration and management (Ashike,2011). The cashless system which is cultured to the use of e-payment increases profitability through the following ways: i. Convenience – removing administrative resources required by invoices, cheque and cash ii. Immediacy – credit cards enable instant purchases without delay iii. Improved cash flow – payment at the time of purchase reduces the pressure caused by 30days invoicing iv. Growth – opens additional payment channels via the phone, mail order, internet and increases customers’ base. More customers mean more revenue v. Competitive advantages –match and beat the services of competitors and gain the edge.
SUMMARY AND CONCLUSION
The introduction of electronic banking in Nigeria has a strong influence on the development of the payment system. However, it involves the commitment of a huge amount of financial resources on computer technology, telecommunication facilities, and constant electricity. The ATM has been the best and the most common means of effecting cashless policy in Nigeria by learned and unlearned, poor and rich, so the government should adopt these suggestions in order to achieve desired results like other developed countries.
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