TAP Technologies Limited has witnessed a significant increase in closed loop prepaid card usage in Nigeria between 2021 and 2024, as reported by Euromonitor International.
The surge in closed-loop prepaid card transactions indicates a growing trend towards cashless payments, particularly in Nigeria’s informal transportation sector. This shift offers benefits such as convenience, security, and efficiency compared to traditional cash transactions.
Between 2021 and 2024, the number of closed loop prepaid card transactions in Nigeria rose from 2.2 million to 8.6 million, with transaction value increasing from ₦6.16 billion to ₦18.03 billion during the same period. TAP plays a key role as the primary payment provider for Lagos State’s mass transit system, a significant market for the company.
The introduction of the Lagos Blue Line train and improvements in road infrastructure have contributed to the growing demand for Cowry cards since their launch in 2021.
Since its inception in 2020, TAP’s Cowry card has garnered over five million users, with increasing card issuances and transaction volumes. The company’s CEO mentioned that the Cowry card has processed over ₦20 billion in transactions.
Cowry cards, priced at ₦1,000, utilize NFC technology for contactless payments on buses and trains. Users can top up their cards via the Cowry Wallet app or through other methods like bank transfers or agents.
Feedback from users like Precious Kuye and Deborah Innocent highlights the ease of use and convenience offered by the Cowry card compared to traditional payment methods in the transportation sector.
In collaboration with SmartCash Payment Service Bank, TAP introduced new top-up features for Cowry cards in 2024, enhancing the card’s functionality and accessibility for users.
Experts emphasize the role of technology in shaping consumer behavior and driving the adoption of cashless payment systems in Nigeria’s evolving market. The integration of digital payments in the transportation sector is expected to enhance the overall travel experience for commuters.
As awareness grows and adoption rates increase, Nigeria’s transportation sector is poised to transition towards a more seamless and cash-free payment ecosystem, offering commuters a more convenient and secure way to travel.