Contact and Pay (TAP) Applied sciences Restricted, the fintech firm behind Cowry card for Lagos’ practice and Bus Fast Transit (BRT) programs, has pushed a 291% surge in closed loop pay as you go playing cards utilization between 2021 and 2024, in line with a report by world market analysis agency Euromonitor Worldwide.
Closed-loop pay as you go playing cards are preloaded with funds however can solely be used inside a selected community or with designated retailers.
This development highlights the rising adoption of cashless funds, notably in Nigeria’s largely casual transportation sector. Cashless funds cut back the time and problem related to money transactions and the danger of theft and theft, that are frequent points within the sector.
The variety of closed loop pay as you go card transactions in Nigeria jumped from 2.2 million in 2021 to eight.6 million in 2024, with transaction worth rising from ₦6.16 billion to ₦18.03 billion over the identical interval. TAP is the first fee supplier for Lagos State’s mass transit system, its largest market, although particular information for Lagos was not disclosed.
“The rise of pay as you go playing cards is linked to street infrastructure developments and the launch of the Lagos Blue Line practice, which has pushed demand for Cowry playing cards since their introduction in 2021,” the Euromonitor report famous.
TAP launched its Cowry card in 2020 and now has over 5 million customers, up from 3.8 million in 2023. CEO Olamide Afolabi advised TechCabal that 552,000 playing cards have been issued in 2024, surpassing the 400,000 issued in 2023. The corporate claims to have processed over ₦20 billion in transactions final yr.
“To make use of the BRT system, commuters will need to have a Cowry card. We’re the only supplier of the cardboard fee system for transportation in Lagos and several other different states,” Afolabi mentioned.
Cowry playing cards, offered for ₦1,000, are contactless fee playing cards powered by near-field communication (NFC) know-how, enabling customers to pay for bus and practice rides. Funds will be added by way of the Cowry Pockets app, which additionally gives a pay-with-phone function, although most commuters want to prime up by way of financial institution transfers or brokers.
Lagos resident and client information analyst Valuable Kuye, who purchased her Cowry card in 2021 for ₦400, has used it every day for commuting. “I can simply add cash by way of the app or on the terminal,” she mentioned.
Deborah Harmless, a graphic artist, finds the Cowry card extra handy than counting on unpredictable business buses.
“It’s user-friendly and far simpler to make use of,” she mentioned.
In August 2024, SmartCash Fee Service Financial institution, a subsidiary of Airtel Nigeria, partnered with TAP to introduce new top-up options for Cowry playing cards.
“The expansion in card utilization demonstrates how know-how can subtly affect client conduct, even in unstructured markets,” mentioned Uchenna Uzo, professor of selling at Lagos Enterprise College. “ It underscores the vital position of person adoption in Nigeria’s fee ecosystem—a market that deserves shut consideration. A thriving retail sector will depend on a seamless digital fee system.”
Whereas challenges stay, there’s rising consciousness of the advantages of a cashless transportation system in Nigeria. As adoption spreads, the sector will additional combine digital funds, making seamless, cash-free journey a actuality for tens of millions.