A USSD BASED CASHLESS REVENUE COLLECTION SYSTEM: TARGETING THE INFORMAL SECTOR

Abstract

The innovation and advancement of Information Technology (IT) is making an electronic payment (e-payment) a st common part of the global economy. In the 21 century, many advanced Nations are collecting their revenues using online platforms. In Nigeria, the Central Bank of Nigeria (CBN) is promoting a 'cash-less policy' to foster development and in line with Nigeria's vision of a digital economy. This paper designs and implements a USSD based cashless revenue collection system using a mobile phone as databases that hold the information that is needed to conduct transactions and effect payments. The user's data are stored on the digital wallet on the user's mobile phone that will be processed digitally by the revenue collector. Java Programming Language was used for both the desktop and mobile application. Apache tomcat server served as the web server and MySQL was the database. Africastalking USSD simulator was used to simulate mobile service providers. The prototype was tested to evaluate its feasibility and usability. The evaluation of the system shows that the prototype implementation can support the collection of revenue from the informal sector of the economy to enhance the effectiveness of revenue collection process and possibly block revenue leakages.