1.1 Background to the Study
The 21st century has witnessed a great exodus from the traditional business model (Brick) to Electronic business (Click).This paradigm shift can be associated with the corresponding increase in the knowledge of information technology and its advantages. In the emergence of e-commerce, credit cards have long been represented by electronic means of payment, credit cards in shopping malls. Many hotels and other places and items could swipe off the card, POS terminals, ATM cash forms of payment, and online electronic payments. Online payments also known as electronic currency, broadly speaking, refer to a transaction in the online exchange of funds. It is a network-based electronic financial and business card transactions for all types of electronic tools and media. The electronic computer and communications technologies serves as a means Electronic data (binary data) stored in the bank's computer system and through the computer network system in the form of the flow of electronic information transfer and payment.
Electronic Payment System is the basis for online payments, and online payments system development is a higher form of electronic payment. It makes electronic payment easier at any time, through the Internet directly to the consumer, settlement and form e-business environment.
With e-commerce being at an early stage in most third world countries of the world, online shopping trend in Nigeria is not as advanced as it is in developed countries (Olusoji James George, Olufemi A., Lasisi Jubril O. and Lucas O., 2015).
Although, people engage in online banking (ebanking), most people are still not open to the idea of shopping online and prefer to carry out their transactions traditionally, i.e. face-to-face. Folorunso, (2006); Adeyeye, (2008); Ajayi, (2008); Ayo, (2008); Egwali, (2009); Ayo, (2010) identified various contributing factors to hindering the adoption of e-commerce and online shopping in Nigeria. One of such factors is accessibility to the Internet.
The ease of access to the Internet has been identified as one of the factors encouraging the adoption and growth of e-commerce and online shopping in the UK (Soopramanien and Robertson, 2007).
In contrast, majority of the Nigerian populace do not have access to the Internet.
In the year 2006 – the number has grown to 5,000,000 (again just 3.1% of the national population). This figure doubled in 2008 with 10million people having access to the Internet. In 2009, the figure went above double as 23,982,000million people used Internet in Nigeria. By June 2010, the number of internet users in Nigeria has grown to 43,982,200 that is 29.5% of the country’s population. The increasing users of internet in Nigeria from 0.1% in 2000 to 29.5% of its population in June 2010, revealed that the use of internet in the country is growing at a sporadic rate and still has the potential to grow higher (Ayo et al,2011).
Nevertheless, a study recently conducted on internet usage in Nigeria shows that about 46.1% (86,219,965) of the total population (186,987,563 people) are internet users and about 53.9% of the total populace (i.e. 100,767,598 people) are non-internet users (Internet World Stats, 2016). From these percentages, it is obvious that only a fraction of the general populace uses the Internet and even those who access it do so through numerous cybercafés scattered all over urban parts of the country (Ayo, 2006). Cybercafés according to Adomi et al., (2003:489) “are places where Internet public access services are provided by entrepreneurs for a fee on amount of data used” and are quite popular among Nigerians because of the high cost of connectivity by individuals.