E-Financial
Consumer Appetite for Digital Payments Takes Off in Nigeria- Mastercard New Payments Index Reveals
As the world went into pandemic lockdown in 2020, consumers shifted their spending habits to embrace contactless tap-and-go payments and online shopping.
As stores closed and social distancing took hold, retailers worldwide moved their businesses online, embraced e-commerce and explored the potential of new ways to pay.
More than a year later, research from Mastercard shows that the adoption of new payment technologies is rising, and consumer appetite for new, fast and flexible digital experiences continues to grow.
The Mastercard New Payments Index shows 96% of Nigerian consumers will consider using at least one emerging payment method, such as cryptocurrency, biometrics, contactless, or QR code, in the next year.
Over two-thirds of respondents (66%) agree they have tried a new payment method they would not have tried under normal circumstances, but the pandemic has galvanized people to try flexible new payment options to get what they want, when they want it.
With this interest and consumer demand also comes a greater expectation for businesses to provide multiple ways to shop and pay.
In fact, 81% of Nigerian consumers say they are more excited about shopping at retailers who offer the latest payment methods.
Additionally, (78%) Nigerian consumers say that digital payment methods help them save money.
“The pandemic made us think differently, partly out of necessity,” said Craig Vosburg, Chief Product Officer at Mastercard.
“To deliver the choice and flexibility that consumers need – and increasingly expect –retailers worldwide need to offer a range of payment solutions that are easy to access and always on.
“As we look ahead, we need to continue to enable all choices, both in-store and online, to shape the fabric of commerce and make the digital economy work for everyone.”
Contactless technology was the digital catalyst to explore new payment options because of its fast, secure, and touch-free experience.
Between the first quarter of 2020 and the same period in 2021, more than 100 markets saw contactless as a share of total in-person transactions grow by at least 50 percent.
A year into the COVID-19 pandemic, contactless is showing its staying power and dynamism – in the first quarter of 2021 alone, Mastercard saw 1 billion more contactless transactions worldwide as compared to the same period of 2020.
All signs point to a continued growth path for contactless, with nearly 7 in 10 consumers globally anticipating using a contactless card this year.
“The world as we now know it has changed dramatically since the outbreak of the pandemic, accelerating long-term shifts in consumer transaction and payment methods.
We continue to work with our merchants, fintechs and banking partners to rapidly innovate payment options that meet consumer needs while ensuring we drive financial and digital inclusion,” said Raghav Prasad, Division President, Mastercard, Sub-Saharan Africa.
Looking to the future, digital currencies and wallets, wearables, biometrics, contactless and QR codes are trending as emerging payments technologies as people’s comfort with them and understanding of them increases and the use of cash decreases.
In fact, 86% of consumers in Nigeria have more ways to pay compared to this time last year. The exploding interest in new payment technologies may encourage businesses to expand their options at checkout. The Mastercard New Payment Index found:
- Cryptocurrency1Gains Ground – Today consumers can buy, sell, and trade cryptocurrency as a commodity or investment. Consumers are also increasingly showing interest in being able to spend crypto assets for everyday purchases. As global interest in digital currencies continues to accelerate, 6 in 10 people (65%) in Nigeria say they plan to use cryptocurrency in the next year, with 76% noting they are more open to using it than they were a year ago. While consumer interest in cryptocurrency – especially floating digital currencies such as Bitcoin – is high, work is still required to ensure consumer choice, protection, and their regulatory compliance. Earlier this year, Mastercard announced that it will start supporting select cryptocurrencies directly on its network.
- Biometric Payments are More Trustworthy – Perceptions of safety and convenience have been front and center for people over the past year. 49% of Nigerian consumers say they plan to use biometric verification methods like gait or walk assessments and fingerprint authorization. In fact, over 6 out of 10 people (66%) feel safer using biometrics to verify a purchase than entering a pin.
- QR Codes are Cleaner and More Convenient – Growing markets are leveraging QR-based options as a clean and convenient way to interact with merchants. Consumer desire for clean and convenient ways to pay will remain post-pandemic. 54% of people in Nigeria expect to use more payment technologies like QR codes in the next year. Consumers also find that that QR codes are cleaner (75%) and more convenient (77%) for in-person payments and have a significant potential to reduce cost of payment acceptance and increase financial
- Digital Wallets Surge in Popularity – Nigeria is seeing a surge in the popularity of digital wallets. 73% of Nigerian consumers said they were likely to use digital wallets next year. 66% of shoppers even say that they feel safer storing their card information in one place such as a digital wallet.
To Meet People’s Demands, Businesses Forced to Jump into Emerging Payment Trends
With consumer interest around new payment technologies, the expectation for businesses to adapt for the long-term is here to stay. Over three in four Nigerian consumers (84%) say that they would shop at small businesses, if they offered more payment options, and 81% noted being more excited to shop at retailers that can offer the latest payment methods, and an equal proportion (81%) said they would be more loyal to retailers who offered multiple payment options.
This behavior shift is reinforced by the desire for consumer choice – with 89% saying that they expect to make purchases when they want and how they want. The businesses that can provide multiple ways to shop and pay are best positioned to meet these expectations.
As the demand for emerging payments and choice continues, it requires a wider range of payment solutions, insights, and products to meet the accelerating enthusiasm for the future state of pay.
With the rapid rate of technological change and shifting customer demands, financial institutions in Nigeria have been looking to keep up with innovation and modernise their technology.
Nigeira CommunicatiosWeek in this report evaluates top five money deposit banks that have successfully integrated technology to enhance customer experience.
This is based on 2025 and early 2026 industry reports, ranks in no particular order.
Despite variations in size and market, these bank share a foundational set of core characteristics and technologies designed to ensure stability, security, and real-time functionality.
First Bank
First Bank of Nigeria leverages technology to drive digital transformation through its FirstMobile app, *894# USSD banking, and automated Digital Xperience Centres (DXC) featuring humanoid robots, AI, and self-service kiosks.
With over 80 percent of transactions handled digitally, the bank focuses on AI-driven customer support, secure card issuance in under three minutes, and cloud-based ERP.
The bank has heavily invested in Information and Communication Technology (ICT) to transition from a traditional institution into a leading digital bank, adopting the mantra “a tech company offering banking services”.
According to a FirstBank leadership report, Callistus Obetta, group executive, technology, Digital Innovation & Services, is overseeing the bank’s IT operations.
He joined First Bank in 2016 from Standard Chartered Bank.
In his role at First Bank, he has overall responsibility for strategy formulation and leading the team charged with transforming and operating the technology platforms and banking services that power the bank and its subsidiaries.
Zenith Bank
Another heavy investor in technology is Zenith Bank and driving its digital banking, focusing on AI, cybersecurity, and fintech innovation through its annual Tech Fair and Zecathon, with a recent major IT infrastructure upgrade improving service delivery.
Key digital solutions include the *966# E-banking service, a mobile app, and the XPath digital platform.
The bank has recently completed a significant IT infrastructure migration to a new, more robust operating system to enhance service quality.
Zenith Bank offers XPath for digitizing payment collection across branches.
The bank is currently overhauling its core banking systems, implementing software from providers like Misys to modernize frontend and backend operations across its African and UK branches.
Akin Ogunranti leads the Bank’s technology group, digital transformation, and strategic technology initiatives.
Ogunranti is a seasoned banker with over 30 years of experience, joining Zenith Bank in 2004.
He previously managed the Bank’s relationships with Multilateral Institutions and Export Credit Agencies, and served as Group Head for Power & Infrastructure, Oil & Gas, and Structured Trade & Project Finance.
He currently oversees Corporate Banking, Oil & Gas, and the Bank’s Business portfolios across Lagos (Public Sector, Apapa, Isolo and Ilupeju), South-West, and South-South regions.m
Fidelity Bank
Fidelity Bank leverages digital technology to enhance banking convenience, offering solutions like Cardless ATM withdrawals, the *770# instant banking code, and the Ivy AI chatbot.
Their technology stack includes secured online banking, NQR scan-to-pay, and advanced digital tools for SME management and corporate credit lending.
Fidelity Online Banking and a Mobile App are top notches as they support NQR scan-to-pay.
The *770# Instant Banking service works on all phones without data.
The bank also offers Virtus for real-time transaction monitoring and Corporate Online Banking (CONB) for bulk payments.
Fidelity utilizes SSL encryption, token technology, and adheres to ISO 27001 and PCIDSS security standards.
With mobile technology and AI-driven solutions, Fidelity Bank provides cost-effective financial access to both banked and unbanked customers.
Stanley Chiedoziem Amuchie, Executive Director, Chief Operations and Information Officer is leading the Bank’s IT operations.
Amuchie holds a record of impressive multi- functional work experience spanning banking, audit, risk management, corporate governance, quality control, operations and information technology, strategy, financial control, business and financial advisory, accounting, general management, business development and consulting, with over 23 years of experience in the banking and financial services industry.
He joined Zenith Bank Plc and enjoyed a distinguished career spanning over 18 years which culminated in his appointment as Group Chief Financial Officer in July 2015 and Group Zonal Head in June 2018, a position he held until his exit in October 2018.
While at Zenith Bank, Stanley also served as a Non-Executive Director on the Boards of Zenith Trustees Limited, Zenith Bureau De Change Limited, Zenith Nominees Limited and was Chairman of the Board of Directors of Zenith Securities Limited.
Between April 2019 and February 2021, Stanley was Chief Technical Consultant at Mint Financial Technologies Limited (now Mintyn Bank, a digital bank).
United Bank for Africa
United Bank for Africa (UBA) also leverages technology to drive digital banking across 20 African countries and globally, serving over 45 million customers.
Key technology banking services include the UBA Mobile App, Leo AI Chatbot, and *919# USSD banking, enabling account opening, transfers, bill payments, and loans.
UBA focuses on Fintech partnerships to enhance AI-powered customer engagement and digital payments.
UBA prioritizes collaborations with fintech companies to accelerate financial inclusion and enhance digital payment infrastructure.
Emmanuel Lamptey is the key executive overseeing technology and digital transformation at UBA.
Lamptey, who serves as the Executive Director, Digital Banking, has 25 years of experience in retail banking, corporate banking, asset management, brokerage, insurance, and microfinance.
His background allows him to combine financial expertise with a digital vision.
TAJBank
TAJBank is a leading Nigerian non-interest (Islamic) bank leveraging technology for digital banking, featuring the TAJWAY app for secure, 24/7 transactions.
The bank uses the SBS Core Amplitude Up banking platform for seamless digital services, including account opening, instant transfers, bills payment, and agency banking.
It offers secure, user-friendly app offering card management, budget planning, and high-frequency transfers available on the App Store and Google Play.
Customers can open accounts through the app or website without visiting a branch.
Its offers USSD Banking and *898# code for mobile transactions can be donewithout internet connectivity.
TAJBank’s technological focus supports its goal of being a leading digital non-interest bank in Nigeria by providing seamless, ethical banking solutions.
Sherif Idi, Co-Founder/Executive Director, is actively involved in the bank’s operational trajectory and growth, often commenting on the bank’s investment in technology, human capital, and expansion strategies.
He oversee the bank’s growth-driven, tech-enabled, and innovative initiatives.
With 21 years career experience in the banking sector, Idi has worked in every unit of banking, from operations manager to marketing and customer service, risk management, branch manager and group head, carving a niche for himself.
Mr. Ola Olukoyede, chairman, Economic and Financial Crimes Commission (EFCC), has called on financial technology companies in Nigeria to strengthen their systems and safeguard their platforms against exploitation by fraudsters and other criminal actors.
Olukoyede made the call yesterday in Abuja during an industry engagement meeting with chief executive officers of fintech companies held at the EFCC headquarters.
He commended the fintech sector for driving financial inclusion and innovation in the country, noting that their platforms have expanded access to financial services.
However, he warned that the same digital space has increasingly been exploited by fraudsters.
According to him, continuous engagement between the EFCC and fintech operators is necessary to identify vulnerabilities and block loopholes being used for financial crimes.
“The opportunities you have created have also given criminals the opportunity to perpetrate crimes,” he said, adding that regular collaboration would help strengthen regulatory safeguards and protect legitimate business operations.
Olukoyede urged fintech operators to protect the integrity of their businesses, stressing that reputation remains a critical asset in the financial sector.
He warned that a single compromised transaction could damage years of trust-building.
He also advocated stronger intelligence sharing and cooperation between both parties, noting that such collaboration would enhance the EFCC’s mandate in tackling financial crimes.
On security concerns, the EFCC chairman raised alarm over the use of fintech and POS channels for ransom payments linked to terrorism financing.
He called for stricter compliance with Know Your Customer (KYC) requirements and improved monitoring of suspicious transactions.
“We have seen that criminals exploit your space, especially in areas involving ransom payments,” he said, urging the industry to work with regulators to close existing loopholes.
The meeting also featured discussions on regulatory and operational challenges in the fintech sector, with both sides exploring measures aimed at strengthening compliance and reducing fraud risks.
Central Bank of Nigeria (CBN) will from today start enforcing the new Bank Verification Number (BVN) regulations, in a major move aimed at tightening banking security and reducing rising cases of fraud across the financial system.
Key changes include restricting phone number changes to once in a lifetime, limiting banking apps to one device, and capping transactions on new devices to \(\text{₦}20,000\) for the first 24 hours.
Bank customers need to know these:
One of the major highlights of the policy is the restriction on updating BVN-linked phone numbers.
Customers will now be allowed to change the phone number attached to their BVN only once in their lifetime.
Fraudsters often take over accounts by changing phone numbers through SIM swap tricks. Limiting changes helps reduce that risk.
Make sure the BVN number you use is one you plan to keep for a long time. If you ever need to change it, do so carefully because you won’t get another chance.
Your account can be temporarily restricted for checks
Banks are now authorised to place suspicious BVNs on a 24-hour watchlist.
During this period, affected accounts may be temporarily restricted while investigations and identity verification are carried out.
If your bank notices unusual activity, your account may be flagged.
Transactions could be delayed or restricted while the bank confirms that you are the one making them.
BVN registration is now strictly for adults
Another key update is the introduction of an age restriction.
Only individuals aged 18 and above can independently register for a BVN.
Minors will no longer be able to obtain standalone BVNs, except through structured, guardian-linked arrangements approved by financial institutions.
You can only use your banking app on one device
The apex bank has also introduced a one-device-per-app rule.
This means customers can only use their banking app on one device at a time.
Logging in on a new phone will automatically log out the previous device.
If you switch to a new device, your transactions will be limited to ₦20,000 for the first 24 hours.
The policy is designed to reduce unauthorised access and improve identity verification, making it harder for fraudsters to operate using cloned devices or stolen login details.
BVN services are now limited to authorised channels
Access to BVN-related services is now more controlled.
Only CBN-approved banks and financial institutions can handle BVN updates or issues.
Avoid using third-party apps or unofficial agents. Always go through your bank for any BVN-related request.
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