Assessment of Digital Payment System Adoption and Security Concerns Among Market Traders in Onitsha, Anambra State, South East Nigeria

The transition from cash-based to digital payment systems in Nigerian markets is accelerating but uneven, with traders in commercial hubs like Onitsha facing both opportunities and concerns related to digital payment adoption. This study assesses digital payment system adoption rates and associated security concerns among market traders in Onitsha Main Market, Anambra State. A cross-sectional survey was applied to 270 traders selected through stratified random sampling across seven trading zones. Questionnaire items covered digital payment platform adoption (POS, mobile transfer, QR code payments), frequency of use, perceived transaction security, fraud experience, and barriers to adoption. Descriptive statistics, chi-square tests, and logistic regression were computed in SPSS. Literature from South East Nigeria identifies fear of transaction failure, concerns about fraud through social engineering, and inadequate network coverage as the dominant barriers to digital payment adoption among market traders. Protection Motivation Theory and the Technology Acceptance Model provide the dual theoretical framework. Findings reveal that 61 percent of traders had adopted at least one digital payment method, but only 24 percent used it as their primary transaction channel. Security concern scores were inversely correlated with adoption frequency, with traders who had experienced prior fraud showing the lowest adoption rates. Recommendations address fraud prevention education, reliable network infrastructure in the market environment, and simplified dispute resolution processes. Keywords: digital payment, adoption, market traders, Onitsha, Anambra State.