Urban retail in Lagos, Nigeria is a vibrant market ecosystem characterized by diverse business models and technological integration challenges. A mixed-methods approach was employed, including surveys and focus group discussions with urban retailers in Lagos. The survey revealed a 45% adoption rate for digital payments, with higher uptake observed among tech-savvy entrepreneurs (theme). Digital payment systems are gaining traction but face challenges such as cost and technological barriers. Retailers should be provided with training on digital payment solutions to enhance their use. Government initiatives promoting digitalization could also accelerate adoption.