Abayomi Susan
Security is increasingly becoming an important consideration for young Nigerians who use digital banking and payment platforms, as more financial activities move online.
For many young people, smartphones have become central to everyday financial activities, including transferring money, paying bills, settling school expenses, shopping online and supporting small businesses operated through social media.
While speed, convenience, rewards and affordable transfers remain important factors influencing customers’ choice of digital financial services, concerns about the safety of funds and personal information are also gaining greater attention.
The growing focus on security comes amid the continued expansion of Nigeria’s digital payment ecosystem. Data from the Nigeria Inter-Bank Settlement System (NIBSS) showed that losses attributed to digital-payment fraud declined from ₦52.26 billion in 2024 to ₦25.85 billion in 2025. Despite the reduction, digital fraud remains a concern for customers and financial institutions.
A recent survey of university students in Lagos also provided insight into how younger customers view security features on digital financial platforms.
The survey found that Transaction Guard was among the most-used security features by respondents, ranking second to login passwords and ahead of other available security tools.
The findings suggest that some young customers are becoming more deliberate about protecting their transactions rather than relying solely on basic account-access measures.
Commenting on the development, Femi Hanson, Head of Marketing at PalmPay, said convenience alone was no longer sufficient for digital-payment users, who also wanted greater confidence that their money was protected.
Hanson noted that giving customers more control over the security of their transactions could help strengthen confidence in digital financial services.
Young Nigerians are particularly active users of digital financial platforms, with many relying on them for online purchases, bill payments, money transfers and business transactions.
As digital finance continues to expand, security is therefore becoming an increasingly important part of the overall customer experience.
Financial technology companies are expected to continue developing security tools and features that give users greater control while maintaining the speed and convenience associated with digital payments.
The growing emphasis on security also highlights the need for customers to remain cautious when carrying out financial transactions online and to make use of available security features on the platforms they use.
For the digital financial sector, the challenge will be to balance convenience and accessibility with effective measures that help protect customers and strengthen trust in digital banking.
