In a major push to strengthen Nigeria’s digital payment system, Moniepoint Inc., a leading fintech company, has partnered with AfriGOpay Financial Services, a subsidiary of the Nigeria Inter-Bank Settlement System (NIBSS), to distribute 5 million AfriGO contactless cards nationwide.
Contents [hide]
Access Our Exclusive Past Questions & Answers PDF Below!
Enhancing Financial Inclusion
This initiative aims to expand financial access, particularly for unbanked and underbanked Nigerians, by providing affordable and efficient payment solutions. The AfriGO cards, equipped with Near Field Communication (NFC) technology, will enable secure, tap-to-pay transactions, reducing the reliance on cash.
According to News Ghana, the partnership seeks to make digital payments more accessible in rural and semi-urban areas where traditional banking services are limited.
Reducing Dependence on Foreign Payment Systems
The AfriGO card is a locally developed payment solution that reduces Nigeria’s reliance on international payment networks like Visa and Mastercard. By using a homegrown card scheme, businesses and consumers can avoid high foreign exchange fees while keeping transaction data within the country.
Moniepoint’s Expanding Network
Moniepoint has built one of Nigeria’s largest agent banking networks, with over 1.5 million POS terminals and 600,000 agents. In 2023, it processed over 5.2 billion transactions valued at more than $150 billion, marking a 205% increase from the previous year (TechCabal).
With this reach, Moniepoint is well-positioned to distribute AfriGO cards efficiently, ensuring that more Nigerians have access to digital payments.
Instant Settlement for Businesses
The collaboration will also enable instant transaction settlements for merchants, a game-changer for small businesses that often experience delays in receiving funds. Faster settlement times improve cash flow, reduce financial risks, and support business growth.
Bridging Nigeria’s Financial Gap
Despite growing fintech adoption, about 40% of Nigerian adults remain outside the formal financial system (News Ghana). This partnership aligns with Nigeria’s financial inclusion strategy by promoting cashless transactions and integrating more people into the digital economy.
The Future of Digital Payments in Nigeria
The rollout of 5 million AfriGO contactless cards is expected to redefine Nigeria’s payment ecosystem by 2025. By leveraging Moniepoint’s vast network and AfriGO’s locally managed payment system, the initiative will create a more secure, cost-effective, and inclusive digital economy.
As Nigeria continues to embrace fintech innovations, collaborations like this will play a crucial role in accelerating financial inclusion and transforming the way payments are made across the country.
Sources:
Discover more from Allmedia24 News
Subscribe to get the latest posts sent to your email.