Digital Payment Systems and Bank Performance in Nigeria: Evidence from a Quantile Panel Study

Using a panel of five Nigerian banks covering 2009–2022, this study examined the impact of digital payment systems on bank performance through quantile regression analysis. The findings show that ATMs consistently enhance profitability, particularly for weaker banks, while POS transactions significantly boost both profitability and shareholder value among top performing banks. Mobile banking contributes strongly to profitability only at higher quantiles, whereas website platforms uniformly undermine performance across all measures. The results concluded that digitalisation effects are heterogeneous in Nigeria, with stronger banks better positioned to leverage mobile and POS platforms. This study therefore recommends prioritising investment in mobile and POS infrastructure, supporting smaller banks in scaling digital adoption, and addressing inefficiencies in website platforms to foster inclusive and sustainable performance gains in the Nigerian banking sector.