PalmPay, the Nigerian fintech with over 35 million customers, has partnered with AfriGO, the nationwide home card scheme, to roll out 5 million contactless fee playing cards and tap-to-pay options throughout Nigeria, the corporate shared in a press release.

The transfer follows the same partnership between Moniepoint and AfriGo, additional aligning with Nigeria’s ongoing shift towards contactless funds.

The partnership comes one week after TechCabal reported contactless fee infrastructure supplier CashAfrica partnered with PalmPay to roll out tap-to-pay performance on its POS terminals. Each corporations will kick off with 1,000 gadgets in a pilot section earlier than a nationwide growth in March.

The current partnership between fintechs and AfriGo alerts a wave of preparedness for contactless fee adoption in Nigeria. For AfriGo, these collaborations signify a strategic transfer to seize a phase of Nigeria’s fee market that is still largely untapped—contactless transactions.

“We’re excited to companion with PalmPay to revolutionize monetary providers and increase entry to digital funds throughout Nigeria. Via this collaboration, AfriGO and PalmPay will present enhanced entry to digital funds—significantly in underserved areas—drive monetary inclusion, and help the quickly rising digital financial system in Nigeria,” mentioned Ebehijie Momoh, Managing Director/CEO of Afrigopay Monetary Providers Restricted (AFSL).

Whereas AfriGo has shared market house with Visa, Mastercard, and native rival Verve, in different digital fee types, contactless funds current a brand new alternative for the scheme to determine a stronger foothold. Business consultants additionally say the current partnerships may handle one of many largest obstacles to contactless fee adoption—service provider acceptance. With main fintechs driving issuance, extra companies could also be incentivized to allow contactless terminals.

“One of many largest problem for contactless fee adoption in Africa has been the shortage of authorization with playing cards,” mentioned Malik Asamu CEO CashAfrica. “I imagine the current partnerships will speed up the supply of  contactless funds and likewise discover in depth methods Nigerians can authorize every transaction earlier than they’re accomplished, Nigerian knowledge reveals clients need to authorize each transaction even right down to the kobo.”

Whereas cellular wallets and QR codes have grown in adoption, Nigeria has but to see widespread contactless card funds, a system dominant in markets like Europe and China. However with two of Nigeria’s prime three fintechs—PalmPay and Moniepoint—now issuing contactless playing cards, the primary actual wave of tap-to-pay transactions in Nigeria might start. 

The wave of contactless fee in Nigeria could also be card-driven fairly than mobile-led as many Nigerians nonetheless lack NFC-enabled smartphones required for contactless fee. 

As Nigeria gears up for mass contactless adoption, the battle for market share is intensifying—and if present traits proceed, fintechs might lastly drive the shift from PIN-based transactions to tap-and-go funds at scale.