For many young Nigerians, banking is now largely digital. From paying online vendors and settling school fees to splitting bills, running businesses on social media and sending money to family and friends, many everyday financial activities now happen through a smartphone.
Speed, convenience, free transfers, and rewards remain important reasons customers choose and stay with digital financial platforms. But as more of their financial lives move online, another factor is becoming increasingly important: security.
The financial services ecosystem continues to expand rapidly, and with that growth comes a greater need to protect users from fraud and other digital threats.
According to the Nigeria Inter-Bank Settlement System (NIBSS), losses to digital payment fraud fell to N25.85 billion in 2025, from N52.26 billion in 2024. While the decline is encouraging, fraud remains a huge concern for consumers and financial institutions, particularly as fraud tactics continue to evolve.
Against this backdrop, a recent PalmPay user survey among university students in Lagos indicates how younger digital banking users are thinking about security.
When respondents were asked which PalmPay security features they used most, Transaction Guard ranked second only to login passwords, ahead of Night Guard and other available security features.
The distinction is significant. While a password is required for account access, Transaction Guard is an optional feature that users actively enable, suggesting that protection is becoming a conscious part of their payment habits.
Security also featured prominently in how respondents described their experience with PalmPay, with words such as “secure,” “reliable,” “efficient,” and “trusted.”
For PalmPay, the findings reinforce the importance of making security an integral part of the users’ experience.
“When it comes to digital payments, convenience alone is no longer enough,” Femi Hanson, Head of Marketing, PalmPay, said.
“Customers want an experience that is fast, rewarding, and easy to use, but they also want confidence that their money is protected. Giving users greater control over how their transactions are secured is an important part of delivering on that confidence.”
That expectation is particularly relevant for younger users. Many shop online, operate small businesses through social media, pay bills digitally, and move money frequently across different platforms. For them, financial services are not separate from their digital lives; they are part of them.
This is why security is increasingly becoming part of the overall value proposition.
The future of digital finance will not be defined by a single benefit. Customers will continue to value free transfers, rewards, speed and convenience, but they will also expect the platforms they use every day to help them protect their money and make safer financial decisions.
For PalmPay, this means continuing to combine accessibility and value with security tools that give users more control over their transactions.
Because moving money should not only be easy and rewarding, it should also feel safe.
For more information, please visit palmpay.com.
