Nigeria’s e-payment ecosystem has grown rapidly through fintech innovation, mobile adoption, and reforms by the Central Bank of Nigeria. While this expansion has improved efficiency and financial access, it has also created risks such as cybersecurity threats, data privacy issues, and interoperability challenges. The study evaluates how current regulations address these risks while balancing innovation with financial stability. The study specifically investigates the role of blockchain for settlement, artificial intelligence for fraud detection, and open APIs for open banking in improving efficiency without compromising security. It also assesses the effectiveness of key regulatory interventions, particularly the eNaira and regulatory sandbox initiatives, in promoting financial inclusion among under-served and rural populations. Using a survey research design on a population of 377, the study applies Structural Equation Modelling to examine regulatory and technological developments. Findings indicate that although regulatory frameworks have improved oversight and risk management, enforcement gaps, infrastructural deficits, and limited digital literacy constrain their effectiveness. Emerging technologies show strong potential to enhance transparency and fraud control, but require clearer regulatory guidance and technical capacity building. while the eNaira and sandbox trials have stimulated innovation, their impact on deepening financial inclusion remains limited. The study recommends strengthening cybersecurity enforcement, improving interoperability standards, enhancing digital literacy, and ensuring continuous regulatory adaptation to foster secure, inclusive, and sustainable growth in Nigeria’s e-payment ecosystem.