Effect of E-Payment System in Nigeria Schools, Among Staffs and Students of Delta State College Of Education, Mosogar.

| Osika A. N. &
Idugboe J. I. | MOJOSE Vol. 9 No. 1 2022 | P a g e 195

EFFECT OF E-PAYMENT SYSTEM IN NIGERIA SCHOOLS, AMONG STAFFS AND

STUDENTS OF DELTA STATE COLLEGE OF EDUCATION, MOSOGAR.

OSIKA, A. N. (MRS.)
COMPUTER SCIENCE DEPARTMENT, DELTA STATE COLLEGE OF EDUCATION,
MOSOGAR.
tetesquare@gmail.com.

IDUGBOE JULIET IGHOSOGIE

COMPUTER SCIENCE DEPARTMENT, DELTA STATE COLLEGE OF EDUCATION,
MOSOGAR.
osolixious123@gmail.com

ABSTRACT
This research work examined the effect of E-Payment System, documentation and its purpose in
Nigeria Schools using Delta State College of Education, Mosogar as case-study. A descriptive
survey research design was used for the study. The study used simple random sampling technique
to obtain samples to select the participant. The sample for this study consisted of 150 respondents
drawn from the population. The questionnaire was the main instrument for data collection and
data was analyzed using simple percentages and chisquare. Two hypotheses were stated and chi-
square analysis was used to test the hypothesis to check the significant effect. Findings reveal that
E-Payment System positively influence payment transaction. Hence it was recommended that for
E-Payment to be effective, constant power system should be put in place and Tertiary/business
institution should adopt E-Payment system features for Payment transaction.
KEYWORDS: E-Payment, Internet Facilities, E-commerce
Introduction
The emergence of Information and Communication Technology (ICT) had completely changed
the lives and operations of individuals and organizations respectively. ICT and Digital
technologies had made great evolutionary development in finance, economics, operational cost
and enhanced organizational performance (Slozko and Pello, 2015; Ali, 2010). The recent
developments of ICT and digital innovations has brought a dynamic change in the world business
environment, where business transactions are shifting from cash-based transactions to electronic-
based ones contantly (Mohamad, Haroon, and Najiran, 2011).
Also, the rapid growth of internet’s users globally and its continuous use over the years had
contributed much in facilitating electronic commerce in global business environments (Fernandes,
2013).
Consequently, as transactions among business partners continue to proffer on the e-commerce
platform, an electronic payment solution emerged to replace the former cash-based payment
systems (Dennis, 2014). The advent of this development in the global business environment
challenged most organizations to automatically switch from the conventional paper-based money
payment to an electronic payment system which is widely known as the E-Payment system. E-
Payment for short refers to electronic payment.

Mosogar Journal of Science Education Volume 9 Number 1 2022

Effect of E-Payment System in Nigeria Schools, Among Staffs and Students of Delta State College Of Education, Mosogar. | Osika A. N. &
Idugboe J. I. | MOJOSE Vol. 9 No. 1 2022 | P a g e 196

An electronic payment can be defined as system that provides tools for payment of services or
goods carried on the internet. The E-payment system makes transaction processes in e-commerce
between consumers and sellers easier. The need for E-Payment technologies is to respond to
fundamental changes in socio-economic trends.
According to Ayo and Babajide (2016), the focus of every processing transaction electronically is
meant to minimize the transaction risk. In parallel, a trust framework in E-Payment must address
scalability and cost. A business process is understood as a set of logically related tasks performed
to achieve a well-defined business outcome. A well accepted definition of E-Payment is that it “is
the payment made electronically by sharing of business information, maintaining business
relationships and conducting business transactions by the means of information technology
networks and online”.
Generally, electronic payment can be defined as a platform used in making payment for
goods/services purchased online through the use of internet (Roy & Sinha, 2014).
According to Mohammad (2013), E-Payment is undergoing huge growth in terms of the volume
of goods and services that are being traded online. A lot of companies have developed universal
transaction portal offering a whole host of ostensibly free information and services to consumers;
although real micro transaction, is more flexible and allows a clearer link between the content
delivered and the amount paid. As telecommunications manufacturers and network operators try
to enhance the shape of the mobile Internet, startup companies are coming up with new ways to
make transactions such as buying and selling on-line. One very large area of uncertainty is the
degree to which the mobile Internet will resemble the fixed-line Internet. With the birth of modern
technologies in telecommunications, infrastructure and protocols, future transactions will be made
more convenient, safer, more reliable and fast.
Various applications of E-Payment are continually affecting trends and prospects for business over
the Internet, including e-banking, e-ordering, pin generation and online publishing/online retailing.
A more developed and mature electronic environment plays an important role in E-Payment by
encouraging a shift from traditional modes of payment (i.e., cash, checks or any form of paper-
based legal tender) to electronic alternatives (such as e-transact, western union money transfer,
pocketmonie), thereby closing the e-commerce loop (Bickersteth, 2015).
Aristotle (384.322 B.C.) as cited in Hallahan (2010) asserted that everything must be assessed in
money; for this enables men always to exchange their services, and so makes society possible. An
efficient transaction system will reduce the cost of exchanging goods and services and is very vital
to the functioning of the inter-bank, capital markets and money. However, a weak payment system
would severely affect the stability and the developmental capacity of an economy; its failures can
result in the inefficient use of funds, unequal risk-sharing among agents, actual losses for the
participants, and loss of confidence in the financial system and the very use of money itself. The
tasks to design the payment system become ever more complex as competition and innovation
push constantly to the limit the search for better combinations of efficiency, reliability, safety, and
system stability in the providing services to large numbers of individual users and institutions.
New technology supports the electronic storage, transfer, and the use of money could have
significant implications for consumers, merchants, governments and financial institutions. The
electronic payment system consists of:
* Users: Who can in turn be subdivided into retailers and consumers depending on the
transaction model adopted.
* Issuers: Corporate individuals, government that are providing the actual mechanisms or
the means to integrate the mechanism into other users.

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Effect of E-Payment System in Nigeria Schools, Among Staffs and Students of Delta State College Of Education, Mosogar. | Osika A. N. &
Idugboe J. I. | MOJOSE Vol. 9 No. 1 2022 | P a g e 197

* Regulators: Those who are concerned with issues ranging from assuring the integrity of
the mechanism and its operators, to the potential impact on the wider economy.
In Delta State College of Education Mosogar, the traditional transaction processing system have
evolved from simple interactive or message processing programmes into sophisticated distributed
processing system that are repeatable, robust and responsive. The system design makes several
assumptions about the run-time environment-synchronous connection between endpoints of
conversations or pseudo-conversation, user authentication, management of the presentation space
and for the database, the balance between update and read-only-message. Most offices in Delta
State college of Education, mosogar, are filled with all kinds of files and cabinets. Students
registration from newly admitted to course registration are manually done, students are seen
queuing to register course, administration offices are crowded with students and staff trying to pay
different bills to the school administration. The introduction of E-Payment has positively affected
the school administration by easing enquiring, saving time and improving service delivery; Idowu
et al (2012).
E-Payment is becoming prominent in most government establishment in Nigeria with more
institution adopting this technology, in order to provide the growing population of students and
employees with fast, accessible, reliable and quality services.
According to Raja and Senthil, (2015); the success of electronic commerce depends upon effective
E-Payment systems. The Internet and on-line businesses are growing exponentially and this is due
to the explosive growth of adoption of E-Payment. E-Payment on the Internet uses various
electronic mechanisms that can cater for much diversity of applications. The focus of this paper is
to investigate the effect of E-Payment in Delta state university affiliation programme, mosogar
and also find out the level of acceptance to the use of this system by students and staffs.
Research Question

• How efficient is the use of E-Payment system to generate pin for school fee payment?
• How efficient and effective is the use of credit card in the E-Payment system to the
students and Staffs Delta State college of Education, Mosogar?
Research Hypothesis
i.The generation of school fee pin would have no significant effect on the use of E-payment
System.
ii. Use of credit card for online payment of school fee would have no significant effect on the
use of E-payment System.
Methodology
The design of the study was the survey design. The study was conducted in Delta State college of
Education, Mosogar. The population for the study consisted of staffs and students of the college.
Simple random sampling technique was used to select fifty (50) respondents which comprises of
twenty-five staffs and twenty-five students of the school were sampled. The instrument used for
data collection was the questionnaire which contains four (4) questions aligned with the research
question. The questionnaire were face and content validated by an expert in the department of
Science and Computer Education in Delta state college of education, mosogar.

Mosogar Journal of Science Education Volume 9 Number 1 2022

Effect of E-Payment System in Nigeria Schools, Among Staffs and Students of Delta State College Of Education, Mosogar. | Osika A. N. &
Idugboe J. I. | MOJOSE Vol. 9 No. 1 2022 | P a g e 198

Table 1: Analysis of Data

S/N QUESTIONS PRESENTED RESPONSES TOTAL

STAFFS STUDENTS

Yes No Yes No
(%) (%) (%) (%)

1 Is the System Fast for pin generation? 22 3 19 6 50

(88) (12) (76) (24)

2 Is the System well secured when using credit 17 8 23 2 50

card for payment? (68) (32) (92) (8)

3 Is the cost of labour low? 24 1 22 3 50

(96) (4) (88) (12)

4 Is payment made at your own convenient? 25 0 24 1 50

(100) (96) (4)

Testing of Hypothesis
The hypothesis stated in this study will be tested as follows:
Hypothesis One
The generation of school fee pin would have no significant effect on the use of E-payment System.
Table 2: Calculated chi-square value for hypothesis one

Items 𝟎𝒊 𝒆𝒊 𝟎 𝒊 − 𝒆𝒊 (𝟎𝒊 − 𝒆𝒊 )𝟐 (𝟎𝒊 − 𝒆𝒊 )𝟐

𝒆𝒊

Staffs 22 15 7 49 3.27

Students 19 15 4 16 1.07

Total 4.34

X2 = 4.34
The calculated chi-square value is 4.34 which is greater than the critical value of 3.84.

Mosogar Journal of Science Education Volume 9 Number 1 2022

Effect of E-Payment System in Nigeria Schools, Among Staffs and Students of Delta State College Of Education, Mosogar. | Osika A. N. &
Idugboe J. I. | MOJOSE Vol. 9 No. 1 2022 | P a g e 199

By implication, the null hypothesis which states that the generation of school fee pin would have
no significant effect on the use of E-payment System is REJECTED. This means that the
generation of school fee pin have a significant effect on the use of E-payment System.
Hypothesis Two
Use of credit card for online payment of school fee would have no significant effect on the use of
E-payment System.
Table 3: Calculated chi-square value for Hypothesis Two

Items 𝟎𝒊 𝒆𝒊 𝟎 𝒊 − 𝒆𝒊 (𝟎𝒊 − 𝒆𝒊 )𝟐 (𝟎𝒊 − 𝒆𝒊 )𝟐

𝒆𝒊

Staffs 17 15 2 4 0.27

Students 23 15 8 64 4.27

Total 4.54

X2 = 4.54
The calculated chi-square value is 4.54 which is greater than the critical value of 3.84.
By implication, the null hypothesis which states that the use of credit card for online payment of
school fee would have no significant effect on the use of E-payment System is REJECTED. This
means that the use of credit card for online payment of school fee have a significant effect on the
use of E-payment system.
Discussion
Based on the data generated from the questionnaire distributed, tested with the stated hypothesis,
using the chi-square formula at 0.05 level of significant. The following findings were deduced and
discussed below.
Majority of the respondents which are 88% (22) of the staffs and 76% (19) of the students Agreed
that E-Payment system is fast for pin generation and the Chi-square value is 4.34 which indicates
that the generation of school fee pin have a significant effect on the use of E-payment system, so
the school management can improve on the system to make payment relating to school transaction
to be using the E-payment system.
Majority of the respondents which are 68% (17) of the staffs and 92% (23) of the students Agreed
that E-payment is well secured when using credit card for payment and chi-square are value of
4.54 which indicate that the use of credit cards for online payment of school fee have a significant
effect on the use of E-payment system.
From the analysis above, it can be deduced that E-payment system has a great effect in Nigeria
schools when it comes to generating school fee pin and payment of school fee online for the
purpose of fraud reduction and convenience. This is in line with the data gotten from the
respondents that they prefer E-payment due to the fact that it is secure and convenient. This is
supported by Oladeji (2014), who states that “generation of pin for school fee payment is one of

Mosogar Journal of Science Education Volume 9 Number 1 2022

Effect of E-Payment System in Nigeria Schools, Among Staffs and Students of Delta State College Of Education, Mosogar. | Osika A. N. &
Idugboe J. I. | MOJOSE Vol. 9 No. 1 2022 | P a g e 200

the most important aspect of e-payment use in every tertiary institution that adopt the e-payment
system”.
Also, the analysis also shows that the respondents accepts the use of credit card in E-payment
system due to the fact that it is reliable, fast, convenience and has a low labour cost. This is in
line with the view of Dennis, (2014) in the study carried out in Columbia University, New York,
who state that the use of credit card for online school fee payment has been one method the student
love most, as some of the student find it difficult to pay school fee when the system of payment
were still the manual system, as this result to late payment of school fee.

Conclusion
Electronic Transaction has really gained wide and popular acceptance in advanced and developed
countries of the world where it has been fully implemented because of its numerous benefits some
of which includes lower transaction costs, faster processing, data protection etc.
From the study carried out with respects to the goals and objectives of the study seen on the
readings, it is concluded that;
There is a general high level of acceptance to the use of E-payment system by students and staffs
in Delta State college of education mosogar.
There is currently some advancement been carried out in the E-payment system in the Delta State
college of Education Mosogar.
Conclusively, one can say with the level of analysis carried out that the effect to the use of E-
payment system in Delta State college of education mosogar, is relatively high.
Recommendations
Based upon the conclusion of this study, which has exposed the e-payment system to the
administration of Delta State college of education mosogar, the following were recommended;
1. More activities should be incorporated into the e-payment system in the administration of
Delta State college of education mosogar, E.g E-payment system should be use for paying
acceptance fee during admission process.
2. Constant power system should be put in place to ensure a smooth running of the school
portal if the full implementation of the e-payment system is to be achieved.
3. Tertiary/business institutions should employ the e-payment features to carryout
transactions.
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Idugboe J. I. | MOJOSE Vol. 9 No. 1 2022 | P a g e 201

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