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
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Titan Trust acquires Union Bank, keeping its name and century-old heritage
  • Union Bank began as Colonial Bank, later Barclays Bank DCO, before indigenisation in 1979.
  • Nigerian investors took majority control, renaming it Union Bank of Nigeria.
  • The 2009 banking crisis weakened the bank; AMCON stabilised it, while Union Global Partners Ltd injected $500m for 65% control.
  • Titan Trust Bank acquired up to 100% ownership, and Union Bank was delisted from the Nigerian Exchange.
  • A court-approved scheme merged Titan Trust into Union Bank; Union Bank survived, retaining its century-old name and legacy under Titan’s ownership.
Access Bank reported the highest total salaries paid among selected Nigerian banks in 2024, reaching ₦357.6B
  • Access Bank paid the highest total salaries in 2024, amounting to ₦357.6 billion.
  • Stanbic IBTC devoted the largest share of its revenue to salaries at 9.96%, despite a much lower total salary bill than Access or FirstHoldCo.
  • Zenith Bank had one of the highest salary bills (₦137.7 billion) but spent the smallest portion of its revenue on staff at just 3.47%.
  • Wema Bank, though paying the lowest in total salaries (₦33.8 billion), had one of the highest salary-to-revenue ratios at 7.81%.
  • FirstHoldCo, with ₦229.1 billion in staff costs, maintained a moderate salary-to-revenue ratio of 7.14%.
  • The gap between total salary spend and salary-to-revenue ratios reveals more about each bank’s internal cost structure.
Access Bank consistently led in gross earnings among selected Nigerian banks, reaching N4.9T in 2024, a significant jump from N2.6T in 2023
  • Access Bank led all Nigerian banks with ₦4.9T in gross earnings in 2024, nearly doubling its 2023 performance.
  • FirstHoldCo saw a sharp rise in earnings to ₦3.2T in 2024
  • Zenith Bank grew consistently, crossing the ₦4T mark in 2024 from ₦1T in 2022, showing strong operational expansion.
  • Wema Bank, despite being the smallest, quadrupled its earnings over two years, from ₦0.1T to ₦0.4T.
  • Fidelity and FCMB nearly tripled their gross earnings between 2022 and 2024, showing rising momentum among mid-tier banks.
Kenya led 40 African countries with 90.1% account ownership in 2024
- Kenya led with 90.1 percent account ownership in 2024. - Mauritius (89.6 percent) and Ghana (81.2 percent) also in top 3. - Nigeria ranked 11th at 63.3 percent; Tanzania fell short at 59.8 percent. - Only 14 African countries exceeded the 60 percent inclusion benchmark. - Another 14 African countries have no recent data in the Global Findex
Gabon charges the highest air travel tax in Africa at $298, 229 times more than Libya’s $1.30 fee
  • Gabon imposes Africa’s highest international air travel tax at $297.70, followed closely by Sierra Leone at $294 and Nigeria at $180.
  • Libya charges the lowest air travel tax among the listed African countries at just $1.30, with other low-cost countries including Malawi ($5.00), Lesotho ($5.70), and Algeria ($9.80).
  • All of the 10 most expensive countries charge over $100 in departure taxes, suggesting a trend of high levies among a subset of African nations.
  • The gap between the highest and lowest air travel taxes in Africa exceeds $296, revealing significant disparities in passenger costs across the continent.
Nigerian listed banks gave ₦20.97 billion to communities in 2024; Access, Zenith, UBA lead
Key Takeaways:
  • In 2024, ten publicly listed banks donated more than ₦20.97 billion to host communities.
  • Access Holdings Plc led the list with ₦6.74 billion, accounting for nearly 32% of total donations.
  • The top three banks (Access, Zenith, and UBA) contributed around ₦13.6 billion, or 65% of total donations.
  • Donations ranged between ₦113 million (Jaiz Bank) and ₦6.7 billion (Access Holdings).
  • Jaiz Bank donated the smallest proportion, 0.54%.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved