The latest data from the Nigeria Inter-Bank Settlement System (NIBSS) showed growth remained remarkably strong across the various e-payment channels in 2021.
Cumulatively, NIBSS Instant Payment (NIP) transactions recorded a sturdy 71.9% y/y and 70.8% y/y growth in transaction value and volume to N272.0tn and 3.5bn, respectively in 2021.
For POS transactions, total transaction value and volume grew 36.1% y/y and 49.9% y/y respectively to N6.4tn and 982.8m in 2021.
The highest growth was recorded in the mobile transactions category where transaction value was more than twice as tall, beating that of 2020 by 164.5% y/y to N8.1tn. Similarly, transaction volume was up by 113.9 y/y to 284.5m in 2021.
The continued growth in e-payments transaction volume and value in Nigeria reflects an enduring shift away from cash.
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.
Furthermore, the growth in POS transactions shows the increase in agency banking services. We believe the newly launched e-Naira if fully integrated into e-payment channels, will also spur growth.
Despite the significant growth, the Nigerian e-payments industry is still poised for further growth as development of alternative payment channels continue.
Recently, the Nigeria Quick Response (NQR) code was developed by the NIBSS to facilitate contactless payments.
Also, the country’s favourable demographics and regulatory support inform our expectation of accelerated growth of the Fintech industry in Nigeria.
This expectation has received much attention from investors, which has led to significant investments as existing players look to position for future growth.
CSL Research
