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

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 analyzed 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 platforms, with the Price Earning (P/E) ratio representing financial performance. Data was sourced from the Nigerian Exchange Group, the Central Bank of Nigeria, and bank financial reports and then analyzed using the Autoregressive Distributed Lag (ARDL) model . Findings revealed that ATM and Web Pay had a 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 the 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.