The Future of Payments: Moniepoint and AfriGo’s Strategic Partnership
Nigeria’s financial sector is on the brink of a payment revolution as Moniepoint, a leading fintech unicorn, has partnered with AfriGo, the national domestic card scheme, to introduce five million contactless payment cards and tap-to-pay solutions across the country. This initiative is poised to accelerate Nigeria’s transition toward cashless transactions, improving efficiency and financial inclusion.
Why This Partnership Matters
Tapping into Moniepoint’s Extensive Network
Moniepoint boasts a vast distribution network of agents and merchants nationwide. This partnership allows AfriGo to leverage Moniepoint’s reach to facilitate widespread adoption of contactless payments. As a result, businesses and consumers in both urban and underserved communities will benefit from the convenience of tap-and-go transactions.
Bridging the Cash Reliance Gap
Despite Nigeria’s progress in digital payments, cash still dominates everyday transactions. Over 50% of merchants prefer cash due to its reliability and speed. Moniepoint’s VP of Corporate Affairs, Didi Uwemakpan, acknowledges this challenge, emphasizing the need for a payment solution that mimics cash’s efficiency while driving economic growth.
Moniepoint’s Contactless Payment Strategy
Competitive Cost and Scalability
Moniepoint chose AfriGo as its partner due to the card scheme’s cost efficiency compared to global counterparts. However, Moniepoint remains open to working with additional card schemes in the future if they align with its goal of making digital payments accessible and affordable.
Educating Merchants and Consumers
While contactless payments are prevalent in regions like Europe and China, many Nigerians are unfamiliar with the technology. Moniepoint recognizes the need for comprehensive merchant and consumer education to ensure widespread adoption. By driving awareness and demonstrating the convenience of tap-to-pay transactions, Moniepoint aims to make contactless payments a staple in Nigerian commerce.
Regulatory Compliance and Security Measures
Moniepoint’s rollout of contactless payments will adhere to the Central Bank of Nigeria’s (CBN) guidelines. These regulations include:
- A per-transaction limit of ₦15,000
- A daily transaction cap of ₦50,000
- Risk management protocols to prevent fraud
- Thresholds for PIN authentication to enhance security
By incorporating these measures, Moniepoint ensures that its customers can embrace contactless payments with confidence and security.
A Growing Trend in Nigeria’s Payment Landscape
Palmpay’s Entry into Contactless Payments
Moniepoint’s announcement follows Palmpay’s recent partnership with CashAfrica to introduce tap-to-pay functionality on its POS terminals. With a pilot phase of 1,000 devices set for nationwide expansion, competition in Nigeria’s contactless payment space is heating up.
Looking Ahead: Moniepoint’s Timeline
Moniepoint aims to launch its contactless-enabled cards in H2 2025, positioning itself as a key player in Nigeria’s payment innovation landscape.
Conclusion: A Cashless Future for Nigeria?
The Moniepoint–AfriGo partnership marks a significant step toward mainstreaming contactless payments in Nigeria. By leveraging Moniepoint’s expansive network and AfriGo’s cost-efficient infrastructure, this initiative has the potential to redefine the country’s payment ecosystem. However, success will hinge on educating users, overcoming cash dependency, and ensuring security measures are in place.
If executed effectively, this collaboration could lay the foundation for a future where digital payments become the norm, driving financial inclusion and economic growth in Nigeria.