Exploring the Role of Digital Payment Channels in Mitigating Unemployment
Abstract
Purpose: The study aimed to discusses how digital payment channels will affect unemployment in Nigeria in the period between 2009 and 2024 with reference being placed on mobile payments, web payment, Point of Sales (POS) transactions, and Automated Teller Machines (ATM).
Design/Methodology/Approach: Based on the annual secondary data of the Central Bank of Nigeria (CBN) and World Development Indicators (WDI), the research will use Elastic Net regression and the Granger causality tests to determine the relationship between digital financial inclusion and employment outcomes.
Findings: The results identify that mobile payments and web payments greatly minimize unemployment and show that POS and ATM payments have the potential of encouraging job creation as well as that the transactions may lead to temporary rise in unemployment as a result of automation overburdening labor. The outcomes of Granger causality indicate that these digital channels can forecast the time changes in unemployment.
Implications/Originality/Value: The research notes that the issue of digital financial inclusion is pivotal in determining the dynamics in the labor market in Nigeria and suggests policies that increase access to mobile and web-based payment systems, improve digital literacy, and limit the effects of automated banking interfaces on employment.
Downloads
Article Analytics Summary
References
Adebisi, A. O., Zannu, S. M., & Dada, J. O. (2023). Effect of digital payment on sustainable growth in Nigeria. Fuoye Journal of Finance and Contemporary Issues, 5(1).
Adewale, A. A., & Adeyemo, A. A. (2024). Effect of unemployment and inflation on Nigerian economic growth: a time-series analysis. The Journal of VN Karazin Kharkiv National University. Series: International Relations. Economics. Country Studies. Tourism, (19), 47-56. https://doi.org/10.26565/2310-9513-2024-19-05 DOI: https://doi.org/10.26565/2310-9513-2024-19-05
Adewale, A. A., (2024). The Impact of Electronic Banking Channels on The Financial Inclusion in Nigeria. Gomal University Journal of Research, 40(4), 426-441 DOI: https://doi.org/10.51380/gujr-40-04-03
Afaha, J. S. (2019). Electronic payment systems (E-payments) and Nigeria economic growth. European Business & Management, 5(6), 77. DOI: https://doi.org/10.11648/j.ebm.20190506.11
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2007). Finance, inequality and the poor. Journal of Economic Growth, 12, 27–49. https://doi.org/10.1007/s10887-007-9010-6 DOI: https://doi.org/10.1007/s10887-007-9010-6
Ben Romdhane, Y., Kammoun, S., & Loukil, S. (2024). The impact of Fintech on inflation and unemployment: the case of Asia. Arab Gulf Journal of Scientific Research, 42(1), 161-181. DOI: https://doi.org/10.1108/AGJSR-08-2022-0146
Davis, E. P. (1989). Financial innovation and the experience of the U.K. financial sector. Journal of Banking & Finance, 13(3), 423–446.
Diamond, D. W., & Dybvig, P. H. (1983). Bank runs, deposit insurance, and liquidity. Journal of Political Economy, 91(3), 401–419.s DOI: https://doi.org/10.1086/261155
Droogh, P. H. (2024). The Relationship between Unemployment and Entrepreneurship: Exploring the Mediating Effects of Ease of Doing Business and Digital Infrastructure: Quantitative research on the relationship between unemployment rates and entrepreneurial activity.
Egunjobi, A. T. (2023). Digital Entrepreneurship: A Strategy for Curbing Youth Unemployment in Lagos, Nigeria. Lagos Journal of Banking, Finance and Economic Issues, 4(1), 78-95.
Gloria, A. O. (2025). Digital innovation and poverty reduction in Nigeria. FULafia International Journal of Business and Allied Studies, 3(1), 20-36.
HollexPub. (2025). Technology adoption and emerging issues in digital finance. https://www.hollexpub.com
Idris, M., & Maikomo, J. M. (2024). Impact of digital economy on youth unemployment in Nigeria. KASU Journal of Economics and Development Studies, 10(2), 25-38.
Iwedi, M. (2024). Digital payment channels and economic growth in Nigeria. Advance Journal of Management, Accounting and Finance, 9(3), 16-36.
Jatto, O. R., Nwankwo, O., & Olaiye, O. G. (2023). Electronic Payment Channel And The Economic Growth Of Nigeria. Journal of Business Management, Innovation and Creativity, 2(1), 122-136.
Khalil, S., Audi, M., & Ali, A. (2025). Economic Growth, Digital Access, and Urbanization: Drivers of Financial Inclusion in A Comparative Global Context. Contemporary Journal of Social Science Review, 3(2), 52-61.
Maigari, M. A., & Yelwa, M. M. (2023). Digital Transaction: A Catalyst For Financial Inclusion And Job Creation. Journal Of Digital Marketing And Halal Industry, 5(1), 57-76. DOI: https://doi.org/10.21580/jdmhi.2023.5.1.15001
Money, U., & Iyoha, A. O. (2025). Electronic banking channels and financial performance in the Nigerian banking industry. UMYU Journal of Accounting and Finance Research, 8(1), 193-209.
Nasution, L. N., Rangkuty, D. M., & Putra, S. M. (2024). The Digital Payment System: How Does It Impact Indonesia's Poverty?. ABAC Journal, 44(3), 228. DOI: https://doi.org/10.59865/abacj.2024.37
Okeke, C. T., Ifebi, O. E., & Ekesiobi, C. S. (2023). Financial Inclusion and Unemployment In Nigeria. Journal of Advanced Research in Economics and Administrative Sciences, 4(4), 28-47. DOI: https://doi.org/10.47631/jareas.v4i4.639
Okoh, D. O. N. A. L. D., Olopade, B. C., & Eseyin, O. S. (2023). Digital Payment And Economic Growth: Evidence From Nigeria. Int. J. Manag. Soc. Sci. Peace Confl. Stud, 6, 225-238.
Oladejo, M. O. Yinus, S. O., Azeez, O. A. Shittu, S. A., & Tajudeen, S. (2021). Why the queuing in the banking environment in the era of electronic banking. International Scientific Journal about Technologies. 7(1): 17-25. www.actatecnologia.eu. doi:10.22306/atec.v7i1.99. ISSN:2453-675X DOI: https://doi.org/10.22306/atec.v7i1.99
Popoola, M. A., Ojo, A. O. & Shittu, S. A., (2025). Entrepreneurship practices as a strategic tool for poverty reduction in Nigeria. Management and Entrepreneurship: Trends of Development, 3(33), 149-161. https://doi.org/10.26661/2522-1566/2025-3/33-12 DOI: https://doi.org/10.26661/2522-1566/2025-3/33-12
Posada, J. (2024). Deeply embedded wages: Navigating digital payments in data work. Big data & society, 11(2), 20539517241242446. DOI: https://doi.org/10.1177/20539517241242446
RegTech Africa. (2025). Digital payments and financial innovation trends in Africa. https://www.regtechafrica.com
Rogers-Banigo, I., & James, E. D. (2025). Electronic Payment Systems And Economic Development In Nigeria. African Banking And Finance Review Journal, 20(6), 38-55
Shittu, S. A., Gbolagade, A. S. & Eunice, A. (2020). Effect of Microfinance Bank on Poverty Alleviation, A Survey of Selected Microfinance Bank in Osun State. International Journal of Social Sciences and Management Review. 3(4): 97-105. www.ijssmr.org Doi.org/10.37602/IJSSMR/2020/3407 DOI: https://doi.org/10.37602/IJSSMR.2020.3407
Ugochukwu, E., Ijeoma, U., & Amechi, N. (2025). Digital Innovation, Employment and Poverty Reduction in Nigeria. Journal of Policy and Development Studies, 18(2), 138-157. DOI: https://doi.org/10.4314/jpds.v18i2.10
Usman, S. O., Nasiru, I. M., & Obi, S. E. (2024). Impact of Electronic Payment System On Economic Growth in Nigeria. North Central Journal of Political Science, 2(4), 178-195.
Yang, Y. (2025). The development of digital finance and the crime rate of theft. Finance Research Letters, 71, 106422. DOI: https://doi.org/10.1016/j.frl.2024.106422
Copyright (c) 2025 Abass Adekunle Adewale, Saheed Akande Shittu, Joseph Kwasi Agyemang
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
CSRC Publishing and JBSEE adhere to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in JBSEE agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International). Under this license, the authors published in JBSEE retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of SBSEE are required to cite author(s) and publisher in their work. CSRC Publishing and JBSEE follow an Open Access Policy for copyright and licensing.
