Nigeria is shifting towards digital payments, with a projected 32% decline in cash transactions by 2030, according to the Worldpay Global Payment Report 2024. Enhanced access via smartphones has transformed financial services, with significant growth in banked individuals and electronic transactions. Key projections suggest that digital payments will dominate the landscape, highlighting Nigeria’s rapid financial evolution.
Nigeria is experiencing a substantial transition to digital payment solutions, with a forecasted 32 percent reduction in cash transactions by 2030, as outlined in the Worldpay Global Payment Report 2024 (GPR). This shift is largely facilitated by increased access to financial services in remote regions through smartphones, hence integrating millions into the global economy.
The report cites that Nigeria currently leads the Middle East and Africa (MEA) in cash transactions at point-of-sale (PoS), accounting for approximately 40 percent of PoS value in 2024, down from 91 percent in 2019. Comparatively, cash usage in Nigeria outpaces other MEA nations, such as Saudi Arabia at 22 percent, South Africa at 30 percent, and the UAE at 17 percent.
“Over the past decade, Nigeria has witnessed progress in financial inclusion. According to the World Bank, the percentage of banked Nigerians increased from 30 percent in 2011 to 45 percent in 2021,” the report states, illustrating significant growth in financial access over time.
The Nigerian Inter-Bank Settlement System (NIBSS) reported a dramatic increase in active bank accounts, reaching 311 million in 2024, which highlights the unprecedented speed of the country’s financial evolution. Additionally, account-to-account (A2A) transfers through the NIBSS Instant Payments (NIP) system have become the predominant e-commerce payment method.
Moreover, A2A payments through NQR have risen to be the second most frequently utilized payment method in PoS transactions, confirming the increasing popularity of instant payment systems within the nation. Recent statistics reveal that electronic payment transactions in Nigeria peaked at an impressive N1.07 quadrillion in 2024, representing a remarkable 79.6 percent increase from N600 trillion in 2023.
The volume of e-payment transactions also saw robust growth, with the total processed by NIBSS increasing from 9.7 billion in 2023 to 11.2 billion in 2024, a 15.5 percent year-on-year rise. Additionally, PoS transactions escalated to N19.4 trillion, marking an 81 percent increase from N10.73 trillion in 2023.
Industry experts attribute this rise in electronic transactions to several factors, notably the cash scarcity encountered in early 2023 and the ongoing implementation of the Central Bank of Nigeria’s cashless policy, which is further propelling the nation’s digital payment landscape. The GPR underscores the progress made in the MEA region, indicating that e-commerce transactions grew from 29 percent of total value in 2014 to 49 percent by 2024, nearly rivaling cash and card transactions.
Looking ahead to 2030, digital payments are projected to dominate the e-commerce sector, constituting 65 percent of transaction value. “The shift is even more pronounced at PoS. In 2014, digital payments accounted for only 1 percent of PoS transaction value. By 2024, they had grown to one-third of the market. Worldpay projects that by 2030, digital payments will account for 47 percent of PoS transaction value, nearly equalling traditional cash and card payments,” the report indicates, showcasing an ongoing transformation in Nigeria’s payment practices.
In conclusion, Nigeria is on a significant trajectory towards increased digital payment adoption, with projections indicating a 32 percent decline in cash payments by 2030. This transformation, driven by enhanced access to financial services and the implementation of cashless policies, has increased the volume and value of electronic transactions significantly. The data reveals a clear trend: the future of payments in Nigeria is increasingly digital, aligning with global trends in financial inclusion and e-commerce expansion.
Original Source: tribuneonlineng.com
