Nigeria Digital Payments Market, 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 Industr
Description
Nigeria Digital Payments Market Size Zooming 2.9X to Surpass USD 28 Billion by 2031
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.
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.
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.
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.
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.
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.
Table of Contents
124 Pages
- 1. Research Framework
- 1.1. Research Objective
- 1.2. Product Overview
- 1.3. Market Segmentation
- 2. Executive Summary
- 3. Nigeria Digital Payments Market Insights
- 3.1. Industry Value Chain Analysis
- 3.2. DROC Analysis
- 3.2.1. Growth Drivers
- 3.2.1.1. Rising Smartphone & Internet Penetration
- 3.2.1.2. Growing Adoption of Digital Wallets & Mobile Apps
- 3.2.1.3. Increasing Government Support for Cashless Initiatives
- 3.2.2. Restraints
- 3.2.2.1. Limited Infrastructure Access
- 3.2.2.2. Increasing Cost of KYC Compliance & Onboarding
- 3.2.3. Opportunities
- 3.2.3.1. Increasing Adoption of Domestic Card Schemes like AfriGo
- 3.2.3.2. Growing Usage of QR-Based and Contactless Payments
- 3.2.4. Challenges
- 3.2.4.1. Rising Cybersecurity Threats & Digital frauds Incidents
- 3.2.4.2. Intense Competition among FinTechs & Banks Affecting Margins
- 3.3. Technological Advancements/Recent Developments
- 3.4. Regulatory Framework
- 3.5. Porter’s Five Forces Analysis
- 3.5.1. Bargaining Power of Suppliers
- 3.5.2. Bargaining Power of Buyers
- 3.5.3. Threat of New Entrants
- 3.5.4. Threat of Substitutes
- 3.5.5. Intensity of Rivalry
- 4. Nigeria Digital Payments Market: Marketing Strategies
- 5. Nigeria Digital Payments Market: Pricing Analysis
- 6. Nigeria Digital Payments Market Overview
- 6.1. Market Size & Forecast, 2019–2031
- 6.1.1. By Value (USD Billion)
- 6.2. Market Share & Forecast
- 6.2.1. By Payment Mode
- 6.2.1.1. Mobile Wallets
- 6.2.1.2. Bank Transfers
- 6.2.1.3. Debit/Credit/Prepaid Cards
- 6.2.1.4. USSD-based Payments
- 6.2.2. By Channel
- 6.2.2.1. Mobile Applications
- 6.2.2.2. Point-of-Sale (PoS) Terminals
- 6.2.2.3. Internet Banking
- 6.2.2.4. Agent Banking/Kiosk Services
- 6.2.3. By Industry Vertical
- 6.2.3.1. Retail & E-commerce
- 6.2.3.2. Transport & Logistics
- 6.2.3.3. Healthcare
- 6.2.3.4. Education
- 6.2.3.5. Utilities & Bill Payments
- 7. Competitive Landscape
- 7.1. List of Key Players and Their End Users
- 7.2. Nigeria Digital Payments Company Market Share Analysis, 2024
- 7.3. Competitive Benchmarking, By Oping Parameters
- 7.4. 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)
- 9.1. Paystack
- 9.2. Flutterwave
- 9.3. OPay
- 9.4. PalmPay
- 9.5. Paga
- 9.6. Interswitch
- 9.7. Remita
- 9.8. Moniepoint
- 9.9. Kuda
- 9.10. First Bank of Nigeria
- 9.11. Access Bank
- 9.12. GTBank
- 9.13. MTN Mobile Money
- 9.14. Airtel Money
- 9.15. Verve
- 9.16. AfriGo
- 9.17. Other Prominent Players
- 10. Key Strategic Recommendations
- 11. Research Methodology
- 11.1. Qualitative Research
- 11.1.1. Primary & Secondary Research
- 11.2. Quantitative Research
- 11.3. Market Breakdown & Data Triangulation
- 11.3.1. Secondary Research
- 11.3.2. Primary Research
- 11.4. Breakdown of Primary Research Respondents
- 11.5. 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
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
