Digital Payment Systems and Consumer Confidence in E-Commerce Transactions in Lagos

This study investigates the relationship between digital payment systems and consumer confidence in e-commerce transactions among online shoppers in Lagos State, South West Nigeria. The growth of e-commerce platforms such as Jumia, Konga, and emerging social commerce channels has placed digital payment infrastructure at the centre of the Nigerian online retail experience. Despite significant investments by fintech companies and commercial banks in digital payment solutions, consumer hesitance rooted in concerns about security and reliability persists. The research adopts a descriptive survey design with 310 online shoppers selected through snowball sampling. A structured questionnaire assesses perceptions of payment security, ease of use, reliability of platforms, and overall consumer confidence. Descriptive statistics, correlation, and simple regression are employed for data analysis. The study also explores whether prior negative payment experiences mediate the relationship between payment system quality and confidence. Preliminary findings suggest that perceived security is the dominant predictor of confidence, followed by platform reliability. The research also reveals that younger, more digitally literate consumers show higher confidence levels, pointing to demographic segmentation opportunities for e-commerce marketers. Findings will inform digital marketers, payment solution providers, and e-commerce platform operators on how to design trust-enhancing features that improve conversion rates and repeat purchase intentions among Nigerian online consumers. Keywords: digital payment, consumer confidence, e-commerce, Lagos, fintech