Impact of the Cashless Policy on Buying Behavior of Customers in Nigeria

This study examined the relationship between cashless transactions and consumer buying behavior in Nigeria, focusing on Point of Sale (POS) transactions, mobile banking transactions, and Automated Teller Machine (ATM) transactions. An ex-post facto research design was adopted, with three hypotheses formulated and tested at a 0.05 level of significance. Secondary data were collected from financial transaction records and consumer spending reports from 2010 to 2023. A sample of relevant financial institutions and consumer transaction databases was utilized. The data were analyzed using ordinary least squares regression with E-Views version 10. The results revealed that POS and ATM transactions had a negative but significant relationship with consumer buying behavior, whereas mobile banking transactions exhibited a negative and insignificant relationship. These findings suggest that while digital payment methods are available, consumer reliance on cash transactions remains strong due to transaction inefficiencies, security concerns, and infrastructure limitations. The study recommends that policymakers and financial institutions enhance digital payment infrastructure, reduce transaction costs, and improve consumer confidence in electronic payment systems to facilitate a stronger shift towards a cashless economy.