Digital Payment Systems and the Performance of Deposit Money Banks in Nigeria

The researchers examined the influence of digital payment systems and the performance of deposit money banks in Nigeria. The study was borne out of the desire to empirically assess which of the digital payment systems would influence the performance of deposit money banks by taking into consideration the basic payment systems used by deposit money banks and how to use it to boost its performance. The main objective of the study is to examine the influence of digital payment systems on the performance of Deposit Money Banks in Nigeria. We adopted the ex post facto design. Three hypotheses were tested using both the descriptive and inferential statistical techniques and the result shows that there is a significant relationship between digital payment systems and performance of Deposit money Banks in Nigeria. We concluded that the deposit money banks who have not evolved and moved towards embracing digital payment systems, have achieved above-average in terms of growth and are finding it hard competing and measuring up to its counter parts in the financial industry who have fully embraced digital payment systems and who also keep evolving. It was recommended that Deposit money banks in Nigeria who make use of the digital payment systems (ATM, POS and mobile banking) services should come up with ways of improving the transactions through these platforms as this has a positive impact on their cost efficiency. The challenges encountered by digital payment users such as it being out of service, temporary unable to dispense cash, debiting without dispensing the cash and security challenges should be addressed by deposit money banks to encourage more users. Moreso, transactions on these platforms should be properly regulated and monitored to minimize fraudulent activities.