The adoption of digital wallets for e-commerce in Nigeria is expected to double by 2027, significantly increasing its market share

Key takeaways:

  • Digital wallets are the fastest-growing e-commerce payment method in Nigeria, set to double from 11% in 2023 to 22% by 2027.
  • A2A transfers remain the dominant payment method, slightly increasing from 32% to 34%, showing continued reliance on direct bank-to-bank transfers.
  • Cash-on-delivery is becoming less relevant, dropping from 15% in 2023 to just 9% in 2027, signaling a shift away from cash-based transactions.
  • Both debit card and credit card payments are declining, with debit cards dropping from 19% to 16% and credit cards falling from 15% to 12%, suggesting a changing balance in card preferences.
  • Prepaid cards and buy now, pay later (BNPL) solutions remain relatively small players in the Nigerian e-commerce space, with minimal growth.

Nigeria's e-commerce space is changing, with digital wallets expected to emerge as the fastest-growing payment method. In 2023, digital wallets accounted for 11% of all e-commerce transactions, but by 2027, it is projected to double its market share to 22%. This rapid shift reflects changing consumer preferences, increased smartphone penetration, and growing confidence in digital payment solutions. While account-to-account (A2A) transfers still hold the largest share (32% in 2023 and projected to rise slightly to 34% in 2027), digital wallets are experiencing the most significant growth in adoption.
Cash-on-delivery, once a dominant force in Nigeria’s e-commerce sector, is steadily declining. It accounted for 15% of transactions in 2023 but is expected to shrink to just 9% by 2027. This indicates that more consumers are embracing digital-first payment methods over traditional cash transactions. Debit and credit cards also maintain a steady presence, with debit cards slightly decreasing from 19% to 16% and credit cards increasing from 12% to 15%.

Source:

Worldpay Global Payments Report

Period:

2023 and 2027
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