Top Online Mobile Payment Services in Nigeria for E-Commerce 2020

In Nigeria, cash still controls retail payments, but digital transactions, particularly mobile payment services are growing steadily.

A large proportion of the Nigerian population remains either unbanked or underbanked. Nigerian citizens often ignore banking and choose to keep cash or use local solutions for making transactions for example community banking.

In 2020, retail activity has continued to increase due to the high acceptance of online mobile payment services and the COVID-19 epidemic.

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Focusing on making electronic banking for Nigeria’s unbanked population, mobile money operatives use agents to deliver these services in different locations, especially rural areas.

Online Mobile Payment Services in Nigeria
Online Mobile Payment Services in Nigeria

The 21 licensed mobile money service operators in Nigeria have attained different levels of achievement.

Now you can easily make and earn money in any part of the world with these mobile payment options in Nigeria.

It is projected that by 2022, the transaction value of mobile payment systems will reach approximately $ 14 trillion.

In today’s post, I will walk you through the online mobile payment services you should consider for your e-commerce.

But firstly,

Why Do Your Businesses Need Mobile Payment Services?

According to Business Insider, the use of mobile payment will continue to increase and by 2025, 75% of all monetary transactions will be done without cash.

According to Business Insider, mobile phone usage will continue to rise and by 2025, 75% of all monetary transactions will be done without cash.

Hence, OPay, Flutterwave, GTBank, Remita, and others are entering the e-commerce market at this time

Here are other reasons you should integrate online mobile payment services today.

Mobile payment is the easiest suitable option for customers and can be accomplished a lot quicker.

Being paid from mobile payment is safer and more secure than carrying huge sums of money.

It makes bookkeeping easier and, of course, eases the need for personnel.

It reduces waiting time by enabling customers to pay at any time.

Mobile payments in Nigeria are growing at an alarming rate. So the future of payment will be mobile and it won’t hurt if you get ready on time.

Mobile Payment Services in Nigeria: Mobile Payment Apps

Mobile payment applications are technologies used to pay for products or services using portable electronic devices. These apps can also be used to send money to family members or friends.

With modern technology, these apps besides sending money are also being made accessible to stores where you can scan a barcode on the app on the phone or tablet receiving payment for goods or services provided.

In Nigeria, many mobile payment apps have been developed with amazing features available for customers to check out.

Luckily, I have brought together a few options to get you started instantly.

The main players in the Nigerian mobile payment market include Paga, VCash, and PocketMoni.

Paga launched its services as the first licensed mobile money platform in Nigeria. Today, with the launch of many other mobile money platforms in the Nigerian market, Paga takes over with 8,000,000+ users.

Other online Mobile Payment Options in Nigeria for Small Business Owners include:

There are many mobile options to consider for your business in Nigeria including –


Paystack assists businesses in Africa to get paid by anyone, anywhere in the world today, and more than 25,000 retailers use it.

It permits them to simply prepare payment invoices that can be emailed to customers. Customers can pay with a debit or credit card and this attracts 1.5% in addition to N100 processing fees.


This is the first payment gateway for the government and is the most popular method among private businesses and even individuals.

It is approved by the CBN for payments and collections of funds on behalf of the Federal Government and presently, all the money deposit banks and over 500 microfinance banks make use of it.


This is the oldest and one of the most used.

e-Tranzact is the number one e-payment handling platform in Nigeria and currently operates in Ghana, Kenya, Cote d’Ivoire, South Africa, UK, and used by over 7,000 businesses globally.

The company offers a range of products including PayOutlet, WebConnect, BankIT, PocketMoni, and a couple of others still under development


This app is owned by Nigeria’s largest telecommunications operator MTN. Its benefit is that it allows people to send and receive money from any part of Nigeria quickly.


Firstmonie is a service provider and mobile payment app belonging to Firstbank, one of the leading banks in Nigeria.

The app has gained popularity in the country, with more than 32000 agents in all local governments in Nigeria with unique customers accessing their services daily.


This is a fintech app introduced by Opera. Since its launch, the mobile money app has been able to profit many people owing to its multiplicity and flexibility throughout Nigeria, making it the country’s most innovative fintech app.

Currently, the app has gained much popularity and is among the most common payment apps in the country with more than 40000 agents nationwide.

Palm Pay

This is a fintech app that offers free mobile money transactions. Also, the user earns points when using the app.

Even though this is a new and growing app, it has gained acceptance in Nigeria with many people embracing it.

Konga Pay

This is a mobile payment solution launched by Konga-a giant Nigerian E-commerce company.

The app was originally designed for the e-commerce platform but has now been upgraded to include peer-to-peer transfer, DSTV subscriptions, and other payments.

Besides, there are other mobile payment apps one can consider. These are; Kudi-which is a start-up payment app and Quickteller

Early E-Commerce in Nigeria

There have been many false initiatives Nigeria’s e-commerce industry. But the industry took off with the appearance of Jumia and Konga. 

Nigeria has a growing young population. Mobile penetration was also increasing, improving tech adoption and allowing more people to get on the internet for the first time.

Nigeria has a growing number of young people that have embraced social media. Mobile penetration is on the increase, likewise improving technology adoption and allowing more people to get on the internet for the first time.

Facebook and the Rising Alternative Payment Competition

Moreover, with the new e-commerce realities, new competition in the payment industry is forcing companies to have a rethink in their strategies.

Lately, Facebook has developed its online stores.

The social media giant has huge payment plans and is ready to set up them on its vast ecosystem. Instagram, the home to many Nigerian small businesses, has been testing e-commerce features.

It launched Checkout on Instagram last year 2019, letting users shop for products without leaving the app.

Facebook has also lately launched a new WhatsApp payment service. WhatsApp Pay is built on top of WhatsApp Business which offers improved business support. Thus far WhatsApp Pay is only available in Brazil.



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