The Managing Director of PalmPay, Mr Chika Nwosu, says fraud concerns, trust deficits and limited integration challenge Nigeria’s digital payments ecosystem.
He spoke on Friday at the Payments Forum Nigeria (PAFON 3.0) in Lagos.
The event’s theme was ‘Fair Digital Payments as a Catalyst for Deepening Financial Inclusion in Nigeria’.
Nwosu said digital payment platforms had improved, yet many Nigerians remain sceptical due to fears of fraud and transaction failures.
He noted that before 2019, transaction failure rates exceeded 10 per cent, eroding public confidence in electronic payments.
“The major challenge facing the sector today is trust. Digital payment is still relatively new, and people worry about the safety of funds,” he said.
Nwosu said addressing fraud concerns required sustained investment in security systems, innovation and strict regulatory compliance.
He added operators must follow due process when resolving fraud cases, even amid customer demands for immediate refunds.
Nwosu said fintech firms were working with regulators, including the Central Bank of Nigeria, and telecom operators to improve transaction security.
He stressed that the future lies in embedding financial services into everyday platforms used by individuals and businesses.
According to him, embedded finance enables seamless transactions by integrating payments into where people live, work and trade.
He said expanding access through mobile technology and agent networks would boost inclusion, especially among small businesses and informal operators.
Citing World Bank data, Nwosu said only about 43 per cent of adults in sub-Saharan Africa had formal financial access in 2017.
He noted that improving reliability, integration and accessibility was key to building trust and increasing adoption of digital financial services.
