IMPACT OF AWARENESS AND USAGE OF CASHLESS PAYMENT SYSTEMS ON SOCIO-ECONOMIC ACTIVITIES IN RURAL COMMUNITIES IN KADUNA STATE

Abstract

This study examined the awareness and usage of cashless payment systems in rural communities in Kaduna State, Nigeria, with the aim of determining the level of knowledge, extent of utilization, and factors influencing adoption among rural residents. The study was motivated by the increasing push by the Central Bank of Nigeria toward a cashless economy and the need to promote financial inclusion across underserved populations. A descriptive survey research design was adopted. Data were collected through a structured questionnaire administered to selected respondents across rural communities in Kaduna State. The sample size was determined using appropriate statistical techniques, and data were analyzed using descriptive statistics (mean and standard deviation), as well as inferential statistics including correlation and regression analysis. Findings revealed that rural dwellers possess a relatively high level of awareness of cashless payment platforms such as Automated Teller Machines (ATM), Point-of-Sale (POS) terminals, and mobile banking services. However, the level of actual usage was moderate due to several constraints. The study further established a strong positive and statistically significant relationship between awareness and usage of cashless payment systems, indicating that increased knowledge promotes higher adoption. Regression analysis also identified key determinants of usage, including level of education, network availability, accessibility of POS agents, and transaction costs. Major challenges limiting effective utilization include poor telecommunication infrastructure, unreliable electricity supply, fear of fraud, and relatively high service charges. The study concluded that although awareness of cashless payment systems is increasing in rural Kaduna State, infrastructural and socio-economic barriers continue to limit widespread adoption. The study therefore recommends intensified financial literacy campaigns, expansion of banking and digital infrastructure, reduction of transaction costs, and improved network connectivity to enhance the effectiveness of the cashless policy in rural areas.