An Evaluation of the Contribution of Cashless Alternatives on the Digital Currency Adoption in Nigeria

ABSTRACT
The study examines the Impact of Cashless Policy on the Performance of Deposit Money Banks (DMBs) in Nigeria for the period 2011-2020. The study uses Automated Teller Machine (ATM), Point of Sale (POS) Internet Banking Transactions and Nigeria Electronic Fund Transfer (NEFT) as independent variables to measure the cashless policy while Return on Assets (ROA) was employed as proxy for performance of the DMBs and used as the dependent variable. Hypotheses were formulated and tested using Simple Linear Regression analysis (SLR). There is a significant effect of Automated teller machine transactions on return on assets of deposit money banks in Nigeria. Point of Sale terminal transactions does not have a significant effect on return on assets of deposit money banks in Nigeria. Internet Banking transactions has a significant effect on return on assets of deposit money banks in Nigeria. Nigeria Electronic Fund Transfer (NEFT) does not have a significant effect on return on Asset of deposit money banks in Nigeria. The study concludes that cashless policy has a significant effect on the performance of deposit money banks in Nigeria. The study recommends that management should pay more attention on the activities that will improve the POS and NEFT services of their banks if they wish to increase the ROA and enlighten customers on the convenience and importance of adopting mobile banking channels in completing their transactions and also provide them with adequate information on how to prevent fraudsters from gaining access to their accounts. Government and regulatory authorities should be able to provide security both physically and electronically to prevent the occurrence of hacking by fraudsters.