Nigeria has witnessed a substantial decline in cash transactions, dropping from 91% of total transactions to 55% over the span of four years

Key takeaways:

  • Among all the 40 countries studied in the report, Nigeria leads the decline in cash transactions, dropping from 91% in 2019 to 55% in 2023, a sharper decline than any other country analysed.
  • By 2027, Nigeria’s cash transactions are projected to fall to 42%.
  • Mexico, Thailand, and Japan are also experiencing significant declines, with cash transactions expected to drop below 35% in all three countries by 2027.
  • Brazil, which started with a relatively lower cash transaction rate (48% in 2019), is on track to become one of the least cash-dependent nations in this group, with just 12% of transactions expected to be cash-based by 2027.
  • The global average for cash transactions was already low at 26% in 2019, and it is set to decline further to just 11% by 2027, making cash an increasingly rare payment method worldwide.
  • Germany, a traditionally cash-friendly economy, has seen a major drop, with cash transactions decreasing from 50% in 2019 to a projected 29% by 2027, reflecting broader changes in consumer behavior.

The way people make payments is changing globally, and Nigeria is not left out. In just four years, Nigeria’s cash transactions have plunged from 91% of total transaction value in 2019 to 55% in 2023. This drastic decline highlights the rapid adoption of digital payments, mobile banking, and fintech solutions in the country. By 2027, the value of cash transactions is projected to shrink even further to 42%, signaling a trend toward a cashless economy.
This shift isn’t just happening in Nigeria. Countries like Mexico, Thailand, Japan, Germany, and Brazil are also experiencing a steady drop in cash usage. While the global average of cash transactions was 26% in 2019, it fell to 16% by 2023 and is forecasted to reach just 11% by 2027. The numbers tell a compelling story – the world is moving away from physical cash, and businesses, financial institutions, and individuals must adapt to stay ahead.

Source:

Worldpay Global Payments Report

Period:

2019, 2023, 2027
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