Going cashless in Nigeria: How startups are digitizing payments in the country's trickiest verticals
Afridigest is your intelligent guide to tech in Africa. We provide ideas, analysis, & insights for Africa-focused founders, executives, and investors.
This Saturday essay highlights three startups digitizing payments in sectors where Nigerians struggle to go cashless.
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In many ways, Nigeria is Africa’s leading fintech hub.
Since January 2022, the country — Africa’s most populous — has been the number one destination for fintech funding across the continent.
During that time, the West African country has accounted for almost a third of all disclosed funding raised by fintechs in Africa.
But despite the high levels of fintech activity in Nigeria, cash remains king.
While acceptance of digital payments outside of the country's urban areas is on the rise, it’s still limited today.
And even in large cities like Lagos or Abuja, it can be hard for customers to conduct certain everyday transactions without cash.
According to a recent KPMG survey, consumers in Nigeria find it particularly hard to go cashless when it comes to paying for public transportation, paying informal vendors and artisans, and paying for fuel.
Here’s a look at some innovators spearheading the adoption of digital payments solutions in these tricky verticals in Nigeria.