Nigeria's Growing Digital Payment Industry

Proshare

Tuesday, October 12, 2021 / 02:36 PM / by CSL Research / Header Image Credit: Enel X

 

Recent data from the Nigeria Inter-Bank Settlement System (NIBSS) showed strong growth across the various e-payments channels in the first nine (9) months of 2021. NIBSS Instant Payment (NIP) transactions recorded a healthy 81.8% y/y and 82.9% y/y growth in transaction value and volume to N191.4tn and 2.5bn, respectively. For POS transactions, total transaction value and volume grew 43.9% y/y and 60.4% y/y to N4.6tn and 707.0m, respectively. The most impressive growth was recorded in Mobile Interscheme transfers category where transaction value and volume grew 167.3% y/y and 113.8% y/y to N5.1tn and 188.7m, respectively.


Proshare Nigeria Pvt. Ltd.


The sustained momentum in e-payments transaction volume and value in Nigeria shows the continuous adoption of digital channels by consumers in making payments and moving money faster, even as the shift away from cash has proved enduring. This has also been driven by the increasing internet & mobile penetration as well as investment by banks and other payment-based fintech companies in payment technology infrastructure. Beyond that, the pandemic which allowed the populace to spring quickly to the use of banking apps and USSD transfer channels to transfer funds have proved supportive in the remarkable rise in Mobile interscheme transfers. Furthermore, the growth in POS transactions reflects the increase in agency banking services.

 

Nigeria's significantly under-tapped digital payments industry is poised for significant growth. A myriad of factors across industry fundamentals, positive country demographics, and regulatory support have formed the base of expected accelerated growth for the industry in Nigeria. We also expect the launch of the eNaira to support further growth in digital payments. In our view, the e-payments industry is positioned for long-term growth. Currently, the payment space is one of the most active parts of the Fintech ecosystem, and also a major recipient of the funding rounds amidst attractive valuations. This alludes to the innovative offerings brought by the players to improve customer experience. In essence, the digital engagement which intensified during the pandemic appears here to stay.

 

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

Related News

  1. E-Payments: Building the Path to Digitalization
  2. Q4 2020 Banking Data Report: Gross Loans Trend Higher Amidst Improving Asset Quality
  3. Banking Sector Records 3.46bn Volume of Transaction in Q4 2020 - NBS
  4. Mobile Money Transactions Increased Globally by 65% in 2020 - GSMA
  5. N6.98k USSD Fee: Who Benefits?
  6. FirstBank Hits Over 86,000 FirstMonie Agents, Empowers More Nigerians
  7. Q3 2020 Banking Sector Data: E-Payments on an Upward Trajectory
  8. Banking Sector Records 2.78bn Volume of Transaction in Q3 2020 - NBS
  9. E-Payments Industry Continues to Show Promise
  10. Banking Sector Records 2.16bn Volume of Transaction in Q2 2020 - NBS

Proshare Nigeria Pvt. Ltd.
READ MORE:
Related News
SCROLL TO TOP