Nigerian fintech unicorn Moniepoint has partnered with AfriGO, the national domestic card scheme, to launch five million contactless payment cards and tap-to-pay solutions across Nigeria. This move is expected to accelerate Nigeria’s shift toward digital and contactless payments, particularly in underserved communities.
Key Highlights of the Partnership:
✅ Five million contactless-enabled AfriGO cards to be distributed.
✅ “Tap and Go” solutions to compete with cash-based transactions.
✅ Expansion of contactless payment adoption via Moniepoint’s merchant network.
✅ Compliance with CBN’s contactless payment limits to prevent fraud.
Bringing Contactless Payments to a Cash-Dominated Economy
Currently, over 50% of Nigerian merchants still rely on cash transactions because of their speed and reliability, according to Moniepoint’s VP of Corporate Affairs, Didi Uwemakpan.
️ “If cash is fast and reliable, what is that thing that can mimic cash and still help the economy grow?” Uwemakpan stated.
Moniepoint believes contactless payment is the answer, allowing merchants and consumers to enjoy instant, secure, and convenient transactions without requiring PIN entry for small purchases.
Why AfriGO? Cost Efficiency & Local Market Penetration
AfriGO was chosen for its lower transaction costs compared to global payment card schemes like Visa and Mastercard.
The move aligns with Nigeria’s cashless policy, encouraging local adoption of domestic financial infrastructure.
Moniepoint aims to educate merchants and consumers on how to use contactless payments effectively.
️ “At the end of the day, do my customers want this, do they find value in this, and is it cost-efficient?” Uwemakpan emphasized.
How Moniepoint’s Contactless Payments Will Work
Transaction Limits (CBN Guidelines):
- ₦15,000 per transaction without PIN entry.
- ₦50,000 daily transaction cap to minimize fraud risks.
Fraud Prevention Measures:
- Transactions above the threshold will require PIN authentication.
- The median transaction value for card payments is ₦5,000, ensuring controlled adoption.
Moniepoint vs. Other Contactless Payment Initiatives
Moniepoint’s move follows Palmpay’s recent partnership with CashAfrica, a contactless infrastructure provider, to introduce tap-to-pay functionality on 1,000 POS devices, set to expand nationwide by March 2025.
While contactless payments are common in markets like Europe and China, they remain relatively unfamiliar in Nigeria. Moniepoint and AfriGO will lead efforts in consumer and merchant education to boost adoption.
Final Thoughts: A Step Toward Widespread Digital Payments?
✅ If successful, this partnership could pave the way for mass adoption of contactless payments in Nigeria.
✅ It represents a major step in Nigeria’s financial evolution, reducing reliance on cash and enhancing financial inclusion.
✅ The challenge will be merchant education and infrastructure deployment, ensuring adoption at scale.
Will this finally push Nigeria into the era of seamless digital payments?