Nigeria Digital Payments Market Size Zooming 2.9X to Surpass USD 28 Billion by 2031

Published | 10 July 2025

Nigeria Digital Payments Market is flourishing because of the further deepening of smartphones and mobile internet penetration, the widespread adoption of digital wallets and mobile applications, and strong government support for cashless initiatives.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Nigeria Digital Payments Market size at USD 9.66 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Nigeria Digital Payments Market size to expand at a robust CAGR of 16.5% reaching a value of USD 28.13 billion by 2031. The growth of Digital Payments Market in Nigeria is propelled by the increasing adoption of real-time payments, enhanced financial inclusion, and rising consumer trust in digital transactions. As Africa's leader in real-time payment volumes, driven by the 2011 launch and widespread use of the NIBSS Instant Payments (NIP) system, accessible across various channels, Nigeria has seen a rapid shift away from cash, accelerated by the COVID-19 pandemic and further supported by the 2021 introduction of the Nigeria Quick Response (NQR) system for seamless P2P and P2B payments. Real-time payments constituted 27.7% of total transactions by 2023, with projections to exceed 50% by 2028, while cash usage at PoS terminals dramatically dropped from 91% in 2019 to 40% in 2024, anticipated to fall by another 32% by 2030. This transition is evident in the surging digital transaction volumes, with e-payments reaching NGN 1.07 quadrillion in 2024 (a 79.6% increase from the previous year) and PoS transactions rising 81% to NGN 19.4 trillion. Furthermore, growing financial awareness and robust security measures have bolstered consumer confidence, with 79% of Nigerians trusting digital payments and 98% proactively safeguarding transactions, leading 86% of consumers to plan increased digital payment usage, signifying a strong momentum towards a cashless, digitally-driven economy in Nigeria.

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Opportunity - Growing Usage of QR-Based and Contactless Payments

The growing usage of QR-based and contactless payments is emerging as a key growth driver for the Nigeria Digital Payments Market. With increasing smartphone penetration and the demand for faster, more secure transactions, QR code payments are gaining widespread adoption among businesses, financial institutions, and consumers. Fintech firms like Paystack, Flutterwave, and Tally, along with traditional banks, such as Access Bank and First Bank, are actively integrating QR solutions into their platforms, enabling seamless transactions without the need for POS terminals. The Central Bank of Nigeria’s issuance of a regulatory framework has further boosted confidence and standardization in this payment method. QR codes offer numerous benefits including cost efficiency, low bandwidth functionality, reduced reliance on physical infrastructure, and enhanced financial inclusion, particularly for SMEs and informal businesses. As a result, QR and contactless payments are reshaping the digital transaction landscape in Nigeria and unlocking new opportunities for innovation and financial access.

Impact of Escalating Geopolitical Tensions on Nigeria Digital Payments Market

Intensifying geopolitical tensions could disrupt the growth of Nigeria Digital Payments Market. Heightened global uncertainty can disrupt cross-border trade and foreign investments, thereby impacting fintech funding and expansion strategies. International sanctions or restrictions could limit access to crucial global payment networks and technologies, impeding the growth of Nigeria's digital infrastructure. Furthermore, economic instability stemming from geopolitical unrest may erode consumer confidence and lead to reduced transaction volumes. Supply chain disruptions could also delay the deployment of essential digital tools and hardware. Finally, the rise in cyber threats linked to geopolitical conflicts may necessitate increased investment in security by payment providers, potentially elevating operational costs and hindering innovation across Nigeria's digital payments ecosystem.

Bank Transfers Segment Leads Nigeria Digital Payments Market

The bank transfers segment dominates Nigeria's Digital Payments Market by payment mode, largely due to the success of the NIBSS Instant Payments (NIP) system. Launched in 2011, NIP has become the backbone of digital transactions by enabling real-time fund transfers between bank accounts, making it Africa's largest instant payments platform and one of the top six globally, with over 12 billion transfers processed in 2024. Its widespread adoption across diverse financial institutions and seamless accessibility via USSD, internet banking, and mobile apps have established bank transfers as Nigeria's most reliable and preferred payment method, significantly enhancing financial inclusion, fostering fintech innovation, reducing cash reliance, and offering cost savings and operational efficiency to businesses. Consequently, bank transfers are the go-to mode for both low-value and high-value transactions, solidifying their market leadership.

Competitive Landscape

Major companies in Nigeria Digital Payments Market include Paystack, Flutterwave, OPay, PalmPay, Paga, Interswitch, Remita, Moniepoint, Kuda, First Bank of Nigeria, Access Bank, GTBank, MTN Mobile Money, Airtel Money, Verve, and AfriGo. The presence of high number of companies intensify the market competition as they compete to gain a significant market share. These companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches to further enhance their market share.

Don’t miss the business opportunity in Nigeria Digital Payments Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and Nigeria Digital Payments Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Nigeria Digital Payments Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

Scope of the Report

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