Digital payment methods are expected to grow over 100% by 2027, making up a larger share of POS transaction value

Key takeaways:

  • Digital wallets are the fastest-growing POS payment method in Nigeria, projected to rise from 18% in 2023 to 37% in 2027.
  • Cash transactions, though still dominant, are steadily declining from 55% to 42%, reflecting a gradual shift towards digital payments.
  • Debit card usage is decreasing from 12% to 8%, possibly due to the convenience of digital wallets and A2A transfers.
  • Prepaid and credit cards remain stable, each holding a minor share of Nigeria’s POS transactions.
  • POS financing remains a niche payment method, with no significant growth expected between 2023 and 2027.
  • Nigerian consumers are prioritizing speed, convenience, and security in their transactions, pushing digital payments to the forefront.

In 2023, digital wallets accounted for just 18% of Point of Sales (POS) transactions in Nigeria, but by 2027, they are projected to more than double to 37% while other payment systems are projected to either fall or remain the same. This surge shows the growing adoption of digital payment solutions, driven by increasing smartphone penetration, improved internet access, and a shift away from cash-based transactions.

Meanwhile, cash remains the dominant payment method but is expected to decline. Cash usage for POS transactions is expected to drop from 55% in 2023 to 42% by 2027, showing that Nigerians are gradually embracing more convenient, digital-first payment options.

Source:

Worldpay Global Payments Report

Period:

2023 and 2027
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