Touch and Pay Fuels 291% Growth in Prepaid Card Usage as Nigeria’s Cashless Shift Accelerates

Nigeria’s move toward a cashless economy is gaining momentum, particularly in the transport sector. Touch and Pay (TAP) Technologies, the fintech powering Lagos’ Cowry card, has played a pivotal role in this transformation, driving the surge in closed-loop prepaid card transactions between 2021 and 2024.

The rapid adoption of closed-loop prepaid cards, which are preloaded with funds but limited to specific merchants or services, reflects a broader trend in Nigeria’s informal transport ecosystem. In just three years, the number of prepaid card transactions skyrocketed from 2.2 million in 2021 to 8.6 million in 2024, with transaction value rising from ₦6.16 billion to ₦18.03 billion.

TAP’s Cowry card system, which powers Lagos’ Bus Rapid Transit (BRT) and train networks, remains the dominant player in this space. The expansion of Lagos’ transport infrastructure, particularly the Blue Line train, has further driven adoption, making cashless commuting more accessible.

Touch and Pay’s Expansion and User Growth

Since launching Cowry cards in 2020, TAP has steadily expanded its footprint. In 2024 alone, fintech issued 552,000 new Cowry cards, surpassing the 400,000 issued in 2023. Today, TAP has over five million registered users and has processed more than ₦20 billion in transactions.

The company’s contactless NFC-enabled Cowry cards allow commuters to pay for rides with a simple tap, reducing reliance on cash and improving transaction efficiency. While the Cowry Wallet app enables digital top-ups, many users still prefer agent-based cash recharges, signaling a gap in digital adoption.

The Bigger Picture: Nigeria’s Cashless Future

TAP’s growth underscores the evolution of Nigeria’s digital payment landscape. As the country pushes for cashless transactions, prepaid transit cards are emerging as a key driver of change, influencing broader payment behaviour.

Experts suggest that wider adoption of prepaid transport cards could set the stage for increased usage of digital payment solutions across other sectors, from retail to everyday services. However, for cashless systems to become mainstream, fintechs and policymakers must address adoption barriers and ensure seamless integration with existing financial services.

With more Nigerian states exploring cashless transport models, the rise of prepaid cards like Cowry signals a shift in consumer payment habits—one that could redefine Nigeria’s financial ecosystem in the years ahead.