Mr. Chika Nwosu, Managing Director of PalmPay, says fraud concerns, trust deficits, and limited integration are major challenges facing Nigeria’s digital payments ecosystem.
He spoke on Friday at the Payments Forum Nigeria (PAFON 3.0) in Lagos, themed “Fair Digital Payments as a Catalyst for Deepening Financial Inclusion in Nigeria.”
Nwosu said that while digital payment platforms have improved, many Nigerians remain sceptical due to fears of fraud and transaction failures.
He noted that before 2019, transaction failure rates exceeded 10 per cent, undermining public confidence in electronic payments.
“The major challenge facing the sector today is trust. Digital payments are still relatively new, and people worry about the safety of their funds,” he said.
Nwosu said addressing fraud concerns requires sustained investment in security systems, innovation, and strict regulatory compliance. He added that operators must follow due process when resolving fraud cases, even amid customer pressure for immediate refunds.
He said fintech firms are working with regulators, including the Central Bank of Nigeria, and telecom operators to improve transaction security.
Nwosu 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 daily economic activities.
He added that expanding access through mobile technology and agent networks would boost financial inclusion, especially among small businesses and informal operators.
Citing World Bank data, he noted that only about 43 per cent of adults in sub-Saharan Africa had formal financial access in 2017.
He said improving reliability, integration, and accessibility is key to building trust and increasing adoption of digital financial services.
