Mobile payment is any type of digital payment service that allows users to complete transactions using a portable electronic device such as a cell phone or tablet. With the benefit of being quick and convenient, mobile payment in Nigeria is fast growing and comes in many forms, from USSD codes to digital wallets and peer-to-peer apps. If you’re curious to learn more about the mobile payment landscape in Nigeria, this article will the unique forms of mobile payment in Nigeria, as well as some of the top platforms for your payment needs.
Available Types of Mobile Payment in Nigeria?
There is a range of mobile platforms that offer various payment solutions in Nigeria. However, while they all require a mobile device, there are differences in how they work. Here are five of the most common categories of mobile payment in Nigeria, explained.
1. USSD Payment
This mobile payment method allows users to complete transactions by dialling special codes on their devices. These codes usually with the following format: *number# communicates with the associated financial service provider and displays various transaction options for the user to make a selection.
Benefits of USSD Payment in Nigeria
The major benefit of this USSD mobile payment option is that users do not need to have an internet connection or a smartphone to initiate and complete transactions. This is a big plus for remote areas in Nigeria where internet coverage is limited and no banks are located nearby.
2. Mobile Banking
This payment option is usually issued by banks and provides users with a variety of banking functions from the convenience of their mobile bank app. Since mobile banking is bank-issued, it is only accessible to customers who have an active account with the financial institution.
Benefits of Mobile Banking in Nigeria
The major advantage of bank apps for mobile payment in Nigeria is primarily the convenience and increased security provided by financial institutions. Mobile banking also gives users more functionality beyond payment like generating bank statements, applying for loans and much more.
3. Third-Party Payment Apps
With third-party payment platforms, you can connect multiple bank information or debit card details to complete a variety of transactions all available on the app. This payment option is not usually provided by banks, but instead by a third-party payment service provider.
Benefits of Third-Party Mobile Payment in Nigeria
Unlike mobile banking apps, users can enjoy third-party payment services regardless of which bank their account is domiciled. Third-party payment apps also have richer and simpler payment features than most mobile bank apps.
4. QR Code Payment
Although relatively new, the QR Code is becoming a preferred option for a smart and seamless mobile payment experience in Nigeria. QR Code payment is a contactless payment method that works by using a smartphone camera to scan a displayed QR code which leads the user to a checkout page for the item they wish to pay for.
Benefits of QR Code Payment Option
The most attractive advantage of QR code payments is that it is contactless, which has become an important shopping feature for users since COVID-19. QR codes also simplify the checkout process
5. Mobile Wallet
A mobile wallet is a virtual wallet in form of an app that lets users store multiple credit and debit card information on their phones. With a mobile wallet, you can pay for online purchases with just a tap of a button, while In-store payment can be completed through contactless payment.
Benefits of Mobile Wallet in Nigeria
The unique feature that makes mobile wallet payment a great option is that it can potentially eliminate the need to carry around physical debit or credit cards. With its contactless payment feature, the mobile wallet also simplifies the checkout process whether in-store or online.
How Widely Accepted is Mobile Payment In Nigeria?
Mobile payment in Nigeria is fast growing to be the most popular digital payment form in the country. In fact, since the start of the pandemic, there has been a dramatic increase in the usage of mobile devices to complete transactions. A report from the Nigerian Inter-Bank Settlement System shows that mobile transactions in Nigeria climbed from N136.85bn within the first four months of 2019 to N623.47bn in 2020 and in 2022, the total volume of mobile payments recorded in Nigeria by April was N4.86tn.
What Transactions Can You Make With Mobile Payment in Nigeria
Mobile payment covers various transaction types in Nigeria, with the only limitation being in the number of funds that can be transferred at once. There is usually a smaller fund limit on mobile payment in Nigeria, as Banks usually require users to use an internet banking platform or visit a local bank to complete larger transactions. This is why the common mobile transactions among Nigerian users are:
- eCommerce payments.
- Funds transfers.
- Bill payments and Online Subscriptions.
- Data and Airtime purchase.
Naira.com – Top Platform for Mobile Payment in Nigeria
One of the best platforms for mobile payment in Nigeria is Naira.com. Designed by Chamsswitch, a top fintech company in Nigeria, Naira.com allows users to send and receive funds, pay bills, buy data and airtime, subscribe to their favourite services like DSTV and even make donations to a non-profit. The platform also functions as a mobile wallet and allows you to store multiple card information so everyday transactions are fast, secure and seamless.
In closing, mobile payment is the future of banking in Nigeria, and we can expect even more payment technologies to be seen in the near future. With Naira.com you can rest assured that you will have the latest mobile payment options available to you from our all-in-one platform.
