RETAILERS CULTURE AND ATTITUDINAL BARRIERS TOWARDS THE USE OF E-NAIRA
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RETAILERS CULTURE AND ATTITUDINAL BARRIERS TOWARDS THE USE OF E-NAIRA
Chapter one
INTRODUCTION
1.1 Background of the Study
Globalisation and digitization have transformed the way businesses function and compete in the 21st century. Information and communication technology (ICT) is driving this transformation (Onyeaghala & Anele, 2017).
Thus, technological developments and advancements have resulted in significant and ongoing changes in the retail sector, since ICT has become critical to the operations of retail outlets in both developing and developed countries (Sajuyigbe & Alabi, 2015).
One of the significant changes caused by technological growth is the transition from a physical payment system to a digital payment system, which resulted in the cashless policy. As a result, a number of digital currencies have emerged and expanded rapidly.
According to Charles (2018), digital currency is a digital representation of either virtual currency (non-fiat) or e-money (fiat), and is therefore frequently used interchangeably with the term virtual currency.
Furthermore, digital currency refers to any cash, money, or money-like asset that is primarily managed, saved, or traded over digital networks, particularly the internet.
Digital currencies contain qualities similar to traditional currencies, but unlike printed notes or minted coins, they lack a physical form (Franco 2015). This lack of physical form enables instant online transactions while avoiding the cost of transmitting notes and coins (Franco 2015).
The rise of digital currencies has created a new set of opportunities that have the ability to drive Nigeria’s economic growth and position Nigeria as a market leader in the future development of this technology (SERC 2015).
With many governments supporting digital currency dispensation because to its substantial influence, Nigeria has also launched a central bank digital currency (CBDC) called eNaira, the first in Africa.
Nigeria’s digital currency, eNaira, is a digital legal money with the same value as the physical Naira and must be recognised for legal transactions within the country. E-Naira would function as a wallet for customers to save current funds in their bank accounts, while organisations might conduct transactions using the platform (SearchNGR, 2021).
With this new development, there have been concerns about how the eNaira platform’s implementation, acceptance, and usability will be affected in rural areas, owing to the fact that most retailers in rural communities are undereducated, have limited exposure, and have a negative attitude towards internet transactions.
In light of this, Ayomide (2021) said that most retailers operating kiosks, stores, and small businesses in rural areas lack enough comprehension and awareness of the new transition.
This is because the bulk of retailers are illiterates, dropouts from school, and other individuals with limited experience to digital operations and services. Thus, this study seeks to assess merchants’ culture and attitudinal hurdles to the usage of eNaira.
1.2 Statement of the Problem
Technology improvements have had a particularly significant impact on retail firms’ operations. To remain competitive in the digital retail market, merchants must be aware of technological changes and manage related hurdles and possibilities (Sorescu, 2011).
Since then, the digital payment system has evolved with the use of cryptocurrencies such as bitcoin, litecoin, ethereum, binance, polkadot, and others. This has had an impact on the payment methods used by retailers around the world.
The eNaira platform, a recent development in Africa, is intended to help customers and businesses eliminate or minimise some of the issues inherent in the settlement and payment process (Nwoke, 2021).
However, concerns have been voiced about how the eNaira digital system will be accepted, accessed, and used by Nigerian retailers, particularly those living in rural areas.
In this context, the researcher emphasised that most vendors that operate in open-air marketplaces, kiosks, street shops, roadside businesses, and so on are not well-known because many of them are illiterate. As a result, their understanding and attitude towards internet-related operations are inadequate.
Many of them are accustomed to the physical exchange of goods for money and believe that the e-payment system is not legitimate and reliable. They have yet to recognise the benefits of the eNaira, and their attitudes towards digital technologies are negative. As a result, the ongoing issue looks to be a barrier to the eNaira platform’s adoption by Nigerian retail firms.
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