Nigeria outgrows cash as fintech revolution redefines financial access

By Nhlanhla Muthe

With POS transactions doubling to $149 billion in just one year, Nigeria is fast becoming Africa’s digital finance trailblazer.

Nigeria’s cashless revolution is accelerating at an unprecedented pace, driven by a thriving FinTech ecosystem that’s transforming how citizens transact, save, and borrow.

With over $850 million (₦387 trillion) in digital transactions recorded in 2024 alone and mobile penetration exceeding 90%, the country is quickly becoming Africa’s digital finance pacesetter.

According to research by Agpaytech, a London-based fintech company specialising in B2B payment technologies and financial services across emerging markets, Nigeria is transitioning from a cash-reliant economy to one increasingly powered by mobile apps, USSD codes, and digital wallets.

The Agpaytech’s research report, FinTech at the Forefront: Redefining Payments in Nigeria’s Move to a Cashless Society, states that FinTech is now reaching 75% of unbanked Nigerians, offering financial access from urban hubs to rural communities.

“FinTech is not merely a technological upgrade, it’s a national leap toward a more connected, cashless future. It’s enabling inclusive economic growth, providing tailored solutions to individuals and small businesses, and reducing the dependency on traditional banking,” the report states.

POS terminals are now the dominant channel for transactions, processing a record $149 billion (₦223 trillion) in 2024, double the $73.3 billion (₦110 trillion) processed in 2023. In contrast, ATM withdrawals have stagnated, growing marginally from $18.81 billion (₦28.21 trillion) to $19.4 billion (₦29.12 trillion) year-on-year. The number of POS transactions soared to 13.08 billion, up 33%, while ATM transaction volume remained virtually flat.

Sanjeev Kumar, CEO of fintech intelligence platform WhiteSight, believes this is more than a shift in payment preference; it is a structural change in how Nigeria handles money.

“Nigeria’s not ditching cash. It’s outgrowing it. Mobile-first banking and USSD rails are making financial access frictionless across demographics, from Lagos markets to remote villages,” he said.

Kumar pointed out that Nigeria processed 3.7 billion real-time transactions in 2021 alone, ranking 6th globally, and is home to over 450 active FinTech startups, including pioneers like Interswitch, PiggyVest, Kuda, and Cowrywise.

“The infrastructure play is mature, and the innovation is deep. We are seeing rapid adoption of neobanks, BNPL services, robo-advisors, and blockchain-powered platforms. FinTech in Nigeria is no longer just about payments, it’s about digital trust, economic participation, and empowerment at scale,” he added.

Yet challenges persist. Data security, infrastructure gaps, and regulatory hurdles continue to test the ecosystem’s resilience. But both public and private sectors are responding rapidly, with reforms, partnerships, and investment fueling continued progress.

Kumar is still confident that as Nigeria advances toward a fully digital financial future, its FinTech-driven transformation offers a blueprint for inclusive growth across the continent.