Moniepoint and AfriGo Bet Big on Contactless Payments—Will Nigerians Adapt?

Nigerian fintech unicorn Moniepoint has entered into a strategic partnership with AfriGo, the national domestic card scheme, to distribute five million contactless payment cards across Nigeria. While this initiative aligns with the Central Bank of Nigeria’s (CBN) cashless economy agenda, its success hinges on consumer behavior, infrastructure readiness, and market education. Will consumers adopt this agenda?, is it cost effective?, and is Nigeria ready for such a shift?

Bridging the Gap Between Cash and Digital Payments

Nigeria remains a cash-heavy economy, with over 50% of merchants still relying on physical cash transactions. Despite the expansion of digital banking and fintech services, a significant portion of businesses and consumers prefer cash due to its speed and reliability. Moniepoint’s Vice President of Corporate Affairs, Didi Uwemakpan, acknowledged this challenge, emphasizing that for contactless payments to gain traction, they must replicate the efficiency of cash while offering added benefits.

“If cash is fast and reliable, what is that thing that can mimic cash and still help the economy grow?” – Didi Uwemakpan

Cost, Convenience, and the Challenge of Adoption

Despite Nigeria’s push for digital payments, over 50% of merchants still prefer cash due to its speed and reliability. For contactless payments to succeed, they must offer the same convenience without added complexity. Moniepoint believes its extensive agent and merchant network can drive adoption, but consumer education and trust remain key challenges.

A major advantage of partnering with AfriGo is cost. Unlike international card schemes, AfriGo offers lower transaction fees, making digital payments more affordable. However, its acceptance and infrastructure still lag behind global players like Visa and Mastercard, raising concerns about long-term scalability.

Regulations, Security, and Market Competition

Moniepoint must also comply with the Central Bank of Nigeria’s (CBN) contactless payment guidelines, which include:

₦15,000 per-transaction limit with ₦50,000 daily cap.

PIN authentication for higher transactions

These measures aim to mitigate fraud, but they could also slow adoption by limiting usability. Additionally, competitors like PalmPay have already begun testing contactless payments on POS terminals, setting the stage for increased competition in the space.

If Moniepoint and AfriGo can effectively educate users, build trust, and ensure widespread terminal availability, contactless payments could reshape Nigeria’s payment landscape. However, the real challenge remains: Can Nigerians shift away from cash at scale?