Nigeria’s transition from a cash-based to a cashless economy, led by the Central Bank of Nigeria’s (CBN) Cashless Policy launched in 2022, aims to modernize payment systems, reduce cash dependence, and enhance financial inclusion. A key component of this policy is the adoption of Point-of-Sale (POS) terminals to facilitate secure electronic transactions. However, challenges such as security concerns, consumer trust, and infrastructural issues impede widespread adoption. This study investigates the impact of POS security features on customer trust and adoption in Nigerian businesses, examining factors like data encryption, authentication, transparency, user experience, and business reputation. Through a quantitative survey approach involving consumers and businesses across diverse Nigerian regions, the research seeks to provide insights for improving POS security and fostering greater adoption of electronic payments, thereby supporting the Cashless Policy’s objectives of economic growth and financial inclusion.