Digital Payment Platforms and Financial Performance of Deposit Money Banks in Nigeria.

Ayoade Olumayowa Vincent; Isibor Areghan (Ph.D.); Akinrinola Olalekan (Ph.D.)

doi:10.52589/AJAFR-GJ5UU7MC

Digital Payment Platforms and Financial Performance of Deposit Money Banks in Nigeria. | AB Journals

Digital Payment Platforms and Financial Performance of Deposit Money Banks in Nigeria.

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African Journal of Accounting and Financial Research

Vol. 8Issue 32025pp. 167–181Published 8 September 2025

DOI 10.52589/AJAFR-GJ5UU7MC

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Abstract:

This study examines the impact of digital payment platforms on the financial performance of Nigerian deposit money banks from 2009 to 2023. Using an ex-post facto design, it analysed secondary data from ten banks, focusing on Automated Teller Machines (ATM), Point of Sale (POS), Web Pay, and Mobile Pay as proxies for digital payment platform, with Price Earning (P/E) ratio representing financial performance. Data was sourced from the Nigerian Exchange Group, Central Bank of Nigeria, and bank financial reports and then analyzed using Autoregressive Distributed Lag (ARDL) model . Findings revealed that ATM and Web Pay had negative and significant impact on financial performance likely due to high operational costs and cybersecurity risks. POS and Mobile Pay had no significant effect indicating a limited direct contribution to financial performance of deposit money banks in Nigeria. The study recommends cost reduction and enhanced cybersecurity for ATM and Web Pay, while expanding POS and Mobile Pay infrastructure to reach underserved populations

Keywords:Automated Teller Machine Digital Payment Platform Mobile Pay Financial Performance Point of Sale Price Earning Ratio Web pay.

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