CHAPTER ONE
INTRODUCTION
Since the overcoming of barter in the history of mankind, trade usually involve the exchange of goods and services and an equivalent abstract value such as money. (Sadeghi & Schneider, 2001). Ever since money was invented as an abstract way of representing value, system for making payments have been in place. In the course of ime, new and increasingly abstract representations of value were introduced. A corresponding progression of value transfer systems, starting from barter, through bank notes, payment orders, cheques and later credit cards, has finally culminated in electronic payment systems. As the transition to electronic payment systems take place, the stock of currency held outside the banking system which constitutes a potential source of unproductive economic resources because they are not available for credit expansion is integrated into it thereby expanding the deposit base of the monetary system. Nigeria payment system has been predominantly cash-based for both positive and negative reasons: positive because of its instant convertibility to other forms of value without intermediation of any financial institution and negative because of its anonymity and un-traceability in unethical transactions
