Nigeria Embraces Digital Payments as Cash Transactions Set to Drop 32% by 2030, WorldPay Report Finds
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Nigeria is undergoing a major shift toward digital payments, with cash transactions projected to decline by 32% by 2030, according to WorldPay’s Global Payment Report 2025.
The report, which analyzes payment trends across 40 global markets, found that cash is no longer the majority payment method in any country studied. However, cash usage remains relatively high in Colombia, Indonesia, Mexico, Nigeria, and the Philippines, where large underbanked populations continue to rely on physical currency.
Nigeria Leads Cash Dominance in MEA Region
In 2024, 40% of Nigeria’s point-of-sale (PoS) transactions were cash-based, a significant drop from 91% in 2019. Despite this decline, Nigeria’s reliance on cash remains higher than some other Middle Eastern and African (MEA) markets:
- Saudi Arabia – 22% cash transactions
- South Africa – 30%
- United Arab Emirates (UAE) – 17%
The report also highlights Nigeria’s progress in financial inclusion. According to the World Bank, the percentage of banked Nigerians increased from 30% in 2011 to 45% in 2021, while South Africa’s banked population surged from 54% to 85% in the same period.
Rise of Instant Digital Payments
A major driver of Nigeria’s cashless transition is the adoption of account-to-account (A2A) transfers through the NIBSS Instant Payment (NIP) system, which has become the dominant e-commerce payment method. Additionally, Nigeria Quick Response (NQR), a QR-based payment system, is now the second most popular PoS payment method, trailing only cash.
Record Growth in Digital Transactions
The surge in digital payments is reflected in record-breaking transaction volumes and values:
- Electronic payment transactions hit ₦1.07 quadrillion in 2024, a 79.6% increase from ₦600 trillion in 2023.
- Total e-payment transactions processed by NIBSS rose 15.5% year-on-year, from 9.7 billion in 2023 to 11.2 billion in 2024.
- PoS transactions skyrocketed to ₦19.4 trillion in 2024, up 81% from ₦10.73 trillion in 2023.
The Future of Digital Payments in Nigeria
WorldPay’s report notes a significant transformation in PoS transactions. In 2014, digital payments made up just 1% of PoS transaction value. By 2024, they accounted for one-third of the market. The report projects that by 2030, digital payments will make up 47% of PoS transactions, nearly matching cash and card payments combined.
As Nigeria continues to embrace digital finance, instant payment systems, QR-based transactions, and fintech innovations are set to drive the country toward a cashless future.
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