The digital payments sector in Nigeria has experienced significant growth over the years, although contactless payments, common in other regions, are still uncommon. PalmPay, a major fintech company in Nigeria, is aiming to change this by introducing tap-to-pay functionality on its POS terminals in partnership with CashAfrica.
CashAfrica’s contactless technology will enable PalmPay’s POS terminals to process NFC-based transactions from various payment methods. The pilot phase will involve 1,000 devices before a nationwide rollout in March. If successful, PalmPay plans to expand this feature to its 300,000 POS terminals across Nigeria, heralding a shift towards mainstream tap-to-pay transactions.
Despite the advancements in Nigeria’s payments landscape driven by fintechs, contactless payments have been slow to gain traction. CashAfrica is also in discussions with other banks to integrate contactless payment into their systems. Addressing security concerns, explicit authorization for each tap and robust transaction security measures will be implemented.
The focus now is on making digital payments faster and more seamless. PalmPay and CashAfrica’s efforts aim to not only drive adoption but also enhance transaction security for a smoother payment experience.