Effect of Mobile Payment Technology on the Financial Performance of Qouted Telecommunication Companies in Nigeria

This study examined the effect of mobile payment technology on the financial performance of quoted telecommunication companies in Nigeria, with specific focus on Mobile Payment Revenue (MPR), Number of Mobile Payment Users (MPU), and Investment in Mobile Payment Technology (MPIN). The study was motivated by the growing integration of digital financial services within the telecommunications sector and the need to understand their implications for profitability, particularly in emerging economies. An ex post facto and quantitative research design was adopted, using secondary data obtained from the audited annual reports of MTN Nigeria and Airtel Africa over a 15-year period (2010–2024). Data were analyzed using descriptive statistics, correlation analysis, and stepwise Ordinary Least Squares (OLS) regression to address multicollinearity among variables.The findings revealed that while mobile payment indicators experienced substantial growth over the study period, their impact on financial performance, measured by Return on Assets (ROA), was mixed. Specifically, Mobile Payment Revenue exhibited a statistically significant negative relationship with ROA, suggesting that increased revenue from mobile payment services may be associated with higher operational and infrastructural costs. The Number of Mobile Payment Users showed a negative but statistically insignificant relationship with ROA, while Investment in Mobile Payment Technology had no significant effect on financial performance.The study concludes that although mobile payment technology contributes to revenue expansion and financial inclusion, its short- to medium-term impact on profitability is constrained by high investment and operational costs. It recommends that telecommunication companies focus on cost efficiency and strategic investment optimization to enhance financial performance.