NEXUS BETWEEN POINT OF SALE, AUTOMATED TELLER MACHINE, MOBILE BANKING AND CURRENCY IN CIRCULATION IN NIGERIA: ARDL BOND TEST COINTEGRATION APPROACH

Abstract

This paper examines the nexus between point of sale (POS), automated teller machine (ATM), mobile banking (MBK) and currency in circulation in Nigeria. Quarterly data were sourced from Central Bank of Nigeria from January 2009- September 2020. Unit root, ARDL bond test cointegration were employed as techniques of analysis. The findings reveal that, there is significant and long run relationship between the ATM, POS MBK and currency in circulation. ARDL bound test cointegration shows that, there exists a long run cointegrating relationship between the variables under investigation. The estimated coefficient of the error correction term suggests that the system (economy) may correct its previous period disequilibrium by about 49% annually. The paper recommended that Government through the CBN should formulate and improve monetarypolicies (cashless policy) aimed at encouraging and improving E-payment system in order to actualize the objective of cashless policy in Nigeria. Also Government, monetary authorities (CBN, Ministry of finance,) and commercial banks should educate and enlighten the people on the Advantages of using POS, MBK, ATM and CCHEQ in their day to day activities in Nigeria in other to reduce currency in circulation and improve economic performance.