Report Overview

Nigeria Digital Payments Market – Industry Trends & Forecast Report, 2031

Nigeria Digital Payments Market size was estimated at USD 9.66 billion in 2024. During the forecast period between 2025 and 2031, Nigeria Digital Payments Market size is projected to grow at a CAGR of 16.5% reaching a value of USD 28.13 billion by 2031. Prominent drivers of Nigeria Digital Payments Market include the increasing adoption of real-time payments, rising financial inclusion, and growing consumer trust in digital transactions. Nigeria leads Africa in real-time payment volumes, primarily due to the widespread use of the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payments (NIP), launched in 2011, which supports multiple access channels including mobile apps, internet banking, ATMs, USSD, and PoS terminals. The COVID-19 pandemic accelerated the shift away from cash, and the 2021 launch of the Nigeria Quick Response (NQR) system further facilitated seamless P2P and P2B payments. By 2023, real-time payments made up 27.7% of total transactions, a figure expected to rise to over 50% by 2028. Despite a history of cash dominance, the country is transitioning rapidly to digital modes, with cash usage at PoS terminals dropping from 91% in 2019 to 40% in 2024 and projected to decline by another 32% by 2030. The market is also witnessing surging digital transaction volumes, as e-payments hit NGN 1.07 quadrillion in 2024, a 79.6% increase from the previous year, while PoS transactions rose 81% to NGN 19.4 trillion. Additionally, growing financial awareness and enhanced security measures have led to stronger consumer confidence, with 79% of Nigerians expressing trust in digital payments and 98% taking proactive steps to safeguard transactions. As a result, 86% of consumers plan to increase their use of digital payments, highlighting a strong upward trajectory toward a cashless, digitally enabled economy in Nigeria.Bottom of Form

Digital Payments – Overview

Digital payments refer to financial transactions conducted electronically through digital platforms, eliminating the need for physical cash. These payments are facilitated via mobile wallets, credit/debit cards, internet banking, Unified Payments Interface (UPI), QR codes, and Point of Sale (POS) systems. Common in e-commerce, bill payments, and peer-to-peer transfers, digital payments offer speed, convenience, transparency, and enhanced security. They contribute to financial inclusion by enabling access to banking and payment services for underserved populations. Governments and businesses increasingly promote digital payments to reduce cash dependency, improve transaction tracking, and enhance economic efficiency. Their adoption continues to grow globally with rising internet and smartphone penetration.

Nigeria Digital Payments Market

Growth Drivers

Increasing Government Support for Cashless Initiatives

The government's consistent support for cashless initiatives has significantly boosted the growth of Nigeria Digital Payments Market. Introduced by the Central Bank of Nigeria (CBN) in 2012, the cashless policy aims to modernize the financial system, reduce dependence on physical cash, and improve transparency and efficiency in financial transactions. Key regulatory measures, such as withdrawal limits and service charges on large cash transactions, were implemented to discourage cash usage and encourage the adoption of electronic payment methods. The policy has been supported by the expansion of digital payment infrastructure, including PoS terminals, mobile banking, internet banking, and ATMs. Government-led initiatives have also focused on financial literacy and public awareness to ensure smooth adoption across both urban and rural areas. This regulatory backing has encouraged innovation in the fintech sector, leading to the rise of platforms like PalmPay that offer affordable and user-friendly digital solutions. Furthermore, the introduction of systems such as the Nigeria Quick Response (NQR) code highlights the government's commitment to enabling secure and real-time digital transactions. While challenges like infrastructure limitations and cybersecurity concerns persist, the government’s ongoing efforts continue to drive financial inclusion and strengthen Nigeria’s position as a leading digital payments market in Africa.

Challenges

Increasing Cost of KYC Compliance and Onboarding

The increasing cost of Know Your Customer (KYC) compliance and customer onboarding presents a key restraint to the growth of Nigeria Digital Payments Market. Financial institutions and fintechs are required to invest heavily in identity verification tools, secure data storage, and regulatory reporting systems to meet compliance standards. These rising operational expenses can burden smaller players and limit their capacity to scale or reach underserved populations. Additionally, complex onboarding procedures may discourage potential users, especially those with limited digital literacy or access to identification documents. As regulatory scrutiny intensifies, maintaining compliance without compromising affordability remains a significant challenge.

Impact of Escalating Geopolitical Tensions on Nigeria Digital Payments Market

Escalating geopolitical tensions could significantly impact Nigeria Digital Payments Market. Heightened global uncertainty may disrupt cross-border trade and foreign investments, affecting fintech funding and expansion strategies. International sanctions or restrictions could limit access to global payment networks and technologies, hindering the growth of digital infrastructure. Additionally, economic instability driven by geopolitical unrest may weaken consumer confidence and reduce transaction volumes. Supply chain disruptions could delay the deployment of critical digital tools and hardware. Moreover, rising cyber threats linked to geopolitical conflicts may force payment providers to invest more in security, increasing operational costs and slowing innovations across Nigeria Digital Payments Market.

Nigeria Digital Payments Market

Segmental Coverage

Nigeria Digital Payments Market – By Payment Mode

Based on payment mode, Nigeria Digital Payments Market is divided into Mobile Wallets, Bank Transfers, Debit/Credit/Prepaid Cards, and USSD-based Payments segments. The bank transfers segment holds the largest share of Nigeria Digital Payments Market by payment mode. It is driven largely by the success of the NIBSS Instant Payments (NIP) system. Launched in 2011, NIP has revolutionized the payment landscape by enabling real-time fund transfers between bank accounts, making it the backbone of digital transactions across the country. With over 12 billion instant transfers processed in 2024 alone, NIP is now the largest instant payments platform in Africa and among the top six globally. Its widespread adoption across commercial banks, microfinance institutions, mobile money operators, and fintechs has made money transfers the most reliable and preferred payment method in Nigeria. The system allows seamless transfers via USSD, internet banking, and mobile apps, ensuring funds are available instantly to recipients, which is especially critical for time-sensitive needs. Beyond its speed and reliability, NIP has significantly improved financial inclusion, supported fintech innovation, and reduced reliance on cash. It has also brought cost savings and operational efficiency to businesses, enabling faster revenue cycles and reduced dependence on credit. As a result, bank transfers have become the go-to mode for both low-value and high-value transactions across urban and rural Nigeria, firmly establishing their dominance in the country's digital payments market.

Nigeria Digital Payments Market – By Channel

Nigeria Digital Payments Market by channel is divided into Mobile Applications, Point of Sale (PoS) Terminals, Internet Banking, and Agent Banking/Kiosk Services segments. The mobile applications segment holds the highest share in Nigeria Digital Payments Market by channel. Nigeria Digital Payments Market is undergoing a significant shift, with mobile applications emerging as the leading channel by transaction volume and value. This dominance is driven by rising smartphone penetration, improved internet access, and a growing preference for convenient, on-the-go financial services. Mobile wallets and banking apps have become the preferred tools for consumers, especially among tech-savvy young adults aged 18–34, who are increasingly opting for app-based solutions over traditional methods like POS, ATMs, or web portals. With over 30 million mobile wallet users in 2023 and a year-on-year growth rate of over 60% in mobile payments, platforms, such as OPay, PalmPay, and Paga, are reshaping the digital payment landscape. Supported by the Central Bank of Nigeria’s push for financial inclusion and a cashless economy, mobile apps now facilitate a wide range of services—from peer-to-peer transfers to utility bill payments and e-commerce transactions. As a result, the mobile applications segment holds the highest share in Nigeria Digital Payments Market by channel, underscoring its pivotal role in the country’s financial transformation.

Nigeria Digital Payments Market – By Industry Vertical

On the basis of industry vertical, Nigeria Digital Payments Market is segmented into Retail & E-commerce, Transport & Logistics, Healthcare, Education, and Utilities & Bill Payments.

Competitive Landscape

Major players operating 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. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2025 - PayU GPO launched its Account to Account (A2A) payment solution in Nigeria. As alternative payments rise, particularly mobile and Open Banking methods, PayU’s A2A offers lower transaction costs, real-time settlements, and improved user experience.

• In April 2025 - Moniepoint Inc., a leading Nigerian fintech, launched MonieWorld in the UK to simplify remittances and digital financial services for the African diaspora. The app enables quick, fee-free transfers to Nigeria with competitive exchange rates and multiple payment options.

• In March 2025 - Paystack, a leading Nigerian fintech acquired by Stripe, launched “Zap,” a consumer-focused app enabling fast and secure bank transfers within 30 seconds. Marking its shift from merchant services to consumer payments, Zap leverages Paystack’s robust infrastructure to simplify everyday transactions.

Scope of the Report

By Payment Mode

• Mobile Wallets

• Bank Transfers

• Debit/Credit/Prepaid Cards

• USSD-based Payments

By Channel

• Mobile Applications

• Point of Sale (PoS) Terminals

• Internet Banking

• Agent Banking/Kiosk Services

By Industry Vertical

• Retail & E-commerce

• Transport & Logistics

• Healthcare

• Education

• Utilities & Bill Payments

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Nigeria Digital Payments Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Smartphone & Internet Penetration
         2. Growing Adoption of Digital Wallets & Mobile Apps
         3. Increasing Government Support for Cashless Initiatives
      2. Restraints
         1. Limited Infrastructure Access
         2. Increasing Cost of KYC Compliance & Onboarding
      3. Opportunities
         1. Increasing Adoption of Domestic Card Schemes like AfriGo
         2. Growing Usage of QR-Based and Contactless Payments
      4. Challenges
         1. Rising Cybersecurity Threats & Digital frauds Incidents
         2. Intense Competition among FinTechs & Banks Affecting Margins
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Nigeria Digital Payments Market: Marketing Strategies
5. Nigeria Digital Payments Market: Pricing Analysis
6. Nigeria Digital Payments Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Payment Mode
         1. Mobile Wallets
         2. Bank Transfers
         3. Debit/Credit/Prepaid Cards
         4. USSD-based Payments
      2. By Channel
         1. Mobile Applications
         2. Point-of-Sale (PoS) Terminals
         3. Internet Banking
         4. Agent Banking/Kiosk Services
      3. By Industry Vertical
         1. Retail & E-commerce
         2. Transport & Logistics
         3. Healthcare
         4. Education
         5. Utilities & Bill Payments
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Nigeria Digital Payments Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Oping Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Nigeria Digital Payments Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Paystack
   2. Flutterwave
   3. OPay
   4. PalmPay
   5. Paga
   6. Interswitch
   7. Remita
   8. Moniepoint
   9. Kuda
   10. First Bank of Nigeria
   11. Access Bank
   12. GTBank
   13. MTN Mobile Money
   14. Airtel Money
   15. Verve
   16. AfriGo
   17. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Nigeria Digital Payments Market Segmentation

Figure 2   Nigeria Digital Payments Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Nigeria Digital Payments Market Size, By Value (USD Billion), 2019–2031

Figure 5   Nigeria Digital Payments Market Share, By Payment Mode, By Value (USD Billion) 2019–2031

Figure 6   Nigeria Digital Payments Market Share, By Channel, By Value (USD Billion) 2019–2031

Figure 7   Nigeria Digital Payments Market Share, By Industry Vertical, By Value (USD Billion) 2019–2031

List of Tables

Table 1      Nigeria Digital Payments Market Share, By Payment Mode, By Value (USD Billion) 2019–2031

Table 2      Nigeria Digital Payments Market Share, By Channel, By Value (USD Billion) 2019–2031

Table 3      Nigeria Digital Payments Market Share, By Industry Vertical, By Value (USD Billion) 2019–2031

Table 4      Paystack Company Overview

Table 5      Paystack Financial Overview

Table 6      Flutterwave Company Overview

Table 7      Flutterwave Financial Overview

Table 8      OPay Company Overview

Table 9      OPay Financial Overview

Table 10    PalmPay Company Overview

Table 11    PalmPay Financial Overview

Table 12    Paga Company Overview

Table 13    Paga Financial Overview

Table 14    Interswitch Company Overview

Table 15    Interswitch Financial Overview

Table 16    Remita Company Overview

Table 17    Remita Financial Overview

Table 18    Moniepoint Company Overview

Table 19    Moniepoint Financial Overview

Table 20    Kuda Company Overview

Table 21    Kuda Financial Overview

Table 22    First Bank of Nigeria Company Overview

Table 23    First Bank of Nigeria Financial Overview

Table 24    Access Bank Company Overview

Table 25    Access Bank Financial Overview

Table 26    GTBank Company Overview

Table 27    GTBank Financial Overview

Table 28    MTN Mobile Money Company Overview

Table 29    MTN Mobile Money Financial Overview

Table 30    Airtel Money Company Overview

Table 31    Airtel Money Financial Overview

Table 32    Verve Company Overview

Table 33    Verve Financial Overview

Table 34    AfriGo Company Overview

Table 35    AfriGo Financial Overview