Nigeria cannot afford to fold her hands and watch other countries take its pride of place in the electronic payment system. It is a truism that no country can function optimally without an efficient financial system which can be triggered by electronic payment system. The study examines the user acceptability and payment problems encountered by Nigerians in utilizing electronic banking system. It equally ascertains the contribution of electronic retail payment to the elimination or reduction in problems inherent in the payment process in Nigeria. Data were sourced from both primary and secondary sources. Data collected were analysed using tables and percentages. However, we found out that cash usage is still very high in Nigeria irrespective of the efforts of Central Bank of Nigeria towards the adoption of electronic payment system. It is caused by the challenges of inadequate power supply, shortage of critical technological infrastructures, lack of sociocultural support and absence of regulatory framework that are required to operate seamless and effective electronic payment system in the country. We recommend that there is the need for the government to remove barriers to innovation, including regulatory barriers to pave way for rapid development of the electronic payment systems in Nigeria.

Nigeria cannot afford to fold her hands and watch other countries take its pride of place in the electronic payment system. It is a truism that no country can function optimally without an efficient financial system which can be triggered by electronic payment system. The study examines the user ...