A Nigerian fintech company, PalmPay, has collaborated with AfriGO, the national domestic card scheme, to introduce five million contactless payment cards and tap-to-pay solutions throughout Nigeria, as per the company’s announcement.
This partnership is part of the broader trend in Nigeria towards contactless payments, with other similar alliances forming in the market.
Recently, PalmPay partnered with CashAfrica to implement tap-to-pay functionality on POS terminals, starting with a pilot phase of 1,000 devices before a nationwide rollout in March.
These partnerships between fintech companies and AfriGo show a strategic move towards embracing contactless payment technology in Nigeria.
The collaboration aims to enhance financial services accessibility, promote digital payments, facilitate financial inclusion, and support Nigeria’s growing digital economy.
While AfriGo competes with established players like Visa, Mastercard, and Verve, the focus on contactless payments signals a shift towards capturing untapped market segments.
By addressing issues such as merchant acceptance barriers, these partnerships are expected to drive the adoption of contactless payments in Nigeria.
The move towards contactless payments in Nigeria, led by PalmPay and Moniepoint, signals a significant shift in the payment landscape, particularly as mobile wallets and QR codes have already gained traction in the market.
With the introduction of contactless cards, Nigeria may soon witness a surge in tap-to-pay transactions, potentially reshaping the payment ecosystem.
As the country prepares for widespread contactless payment adoption, fintech companies are gearing up to lead the transition from traditional PIN-based transactions to more convenient tap-and-go payments on a larger scale.