Nigerian fintech unicorn Moniepoint has partnered with AfriGO, the national domestic card scheme, to roll out five million contactless payment cards and tap-to-pay solutions across Nigeria. This move aligns with Nigeria's ongoing shift toward contactless payments, aiming to bring "tap and go" convenience to an economy still dominated by cash and PIN-based card transactions.

The partnership could drive widespread adoption of contactless payment in Nigeria, considering Moniepoint's wide distribution network across the country. By leveraging Moniepoint's vast network of agents and merchants, the initiative aims to accelerate the Central Bank's cashless agenda and extend digital payments into underserved communities.

According to Didi Uwemakpan, Moniepoint's VP of corporate affairs, the goal is to mimic the speed and reliability of cash transactions. "Today, over 50% of merchants still rely on cash, because it's fast and reliable," Uwemakpan said. "If cash is fast and reliable, what is that thing that can mimic cash and still helps the economy grow?"

This partnership comes one week after TechCabal reported that Palmpay partnered with CashAfrica, a contactless payment infrastructure provider, to roll out tap-to-pay functionality on its POS terminals, starting with 1,000 devices in a pilot phase before a nationwide expansion in March. Moniepoint is building its contactless payment infrastructure and plans to launch contactless-enabled cards in H2 2025.

Moniepoint chose AfriGO for its cost efficiency compared to global counterparts. "While we might decide to announce another card scheme partner, for us, it's about how do we drive digital payments in Nigeria. At the end of the day, do my customers want this, do my customers find value in this, and is it cost efficient?" Uwemakpan shared. "For AfriGO, it's about capturing a part of the market that has not been already captured."

While contactless payment is a staple in markets like Europe and China, many Nigerians are unfamiliar with it. "The responsibility is on us to educate the merchants and users," Uwemakpan added. Moniepoint will comply with the CBN's contactless payment guidelines, which require risk management measures such as a per-transaction limit of ₦15,000 and a ₦50,000 daily limit. "The goal is to introduce enough friction to safeguard customers from fraud," the company said.

Moniepoint will determine the threshold at which PIN authentication becomes necessary for transfers, with the median transaction value for card payments pegged at ₦5,000. If successful, the Moniepoint–AfriGO partnership could be the beginning of a widespread adoption of contactless payment in Nigeria, driving digital payments growth and economic development in the country.