ABSTRACT
The study examines the impact of payment system on Small and Medium Scale Enterprise in Nigeria. The Central Bank of Nigeria (CBN) Communiqué No 69 of the special monetary policy committee meeting of April 15, 2010, acknowledged the existence of several definitions of SMEs. From its perspective, any enterprise that has an asset base (excluding land) of between N5 million and N500 million, and labour force of between 11 and 300 belongs to the SMEs sub-sector.
Electronic payment systems are simply methods of carrying out transactions (in the internet) without involving physical cash or paper cheque, it involves making payments electronically rather than in person. There are different electronic payment systems considered in the study such as the Automated Teller Machine, Mobile banking (also known as M-banking or personal digital assistant (PDA such as mobile, payments, credit application e.t.c.) Online/internet banking, A point-of-sale (POS) transaction which are emphasized on the literature review of this research work.
The study will utilize secondary data which will be collected from the Central Bank of Nigeria (CBN) statistical bulletin between the periods of 1990 – 2020. Based on the findings of the study, we conclude that the small and medium sector of the economy has been greatly affected by the increasing growth and innovation in the payment system segments of the financial system.
