Assessment of Customer Perception of Digital Payment Systems in Union Bank, Port Harcourt, Rivers State

The rapid deployment of digital payment systems by Nigerian commercial banks has reshaped retail transaction behaviour, yet customer perception of these platforms varies significantly across regions and demographic groups. This study assesses customer perception of digital payment systems in Union Bank branches in Port Harcourt, Rivers State, South South Nigeria. A cross-sectional survey design was employed, and 260 customers were selected from three Union Bank branches in Port Harcourt using systematic random sampling. Perception was measured across dimensions of security, convenience, cost-effectiveness, reliability, and ease of use using a validated five-point Likert scale questionnaire. Descriptive statistics, factor analysis, and one-way ANOVA were used to analyse the data. Results revealed that convenience was rated highest among all perception dimensions (mean = 4.23), followed by ease of use (mean = 4.01). Security perception was lowest (mean = 3.19), with 58% of respondents expressing concern about unauthorised account debits and SIM swap fraud. Significant differences in perception scores were observed across age groups, with customers above 50 years recording significantly lower ease of use scores (F = 9.34, p < 0.01). The study concludes that while digital payment systems are broadly perceived as convenient by Union Bank customers in Port Harcourt, security concerns and age-related usability gaps remain significant barriers to full adoption. Financial literacy programmes and enhanced fraud protection mechanisms are recommended. Keywords: digital payment systems, customer perception, Union Bank, Port Harcourt, Rivers State