Nigerian fintech company PalmPay has partnered with AfriGO, the national domestic card scheme, to roll out 5 million contactless payment cards and tap-to-pay solutions across Nigeria. This move marks a significant step towards accelerating contactless payment adoption in the country, following a similar partnership between Moniepoint and AfriGO.

The partnership comes on the heels of TechCabal's report that CashAfrica, a contactless payment infrastructure provider, has partnered with PalmPay to roll out tap-to-pay functionality on its POS terminals. The collaboration will initially kick off with 1,000 devices in a pilot phase before a nationwide expansion in March.

According to Ebehijie Momoh, Managing Director/CEO of Afrigopay Financial Services Limited (AFSL), the partnership aims to "revolutionize financial services and expand access to digital payments across Nigeria." Momoh emphasized that the collaboration will provide enhanced access to digital payments, drive financial inclusion, and support the rapidly growing digital economy in Nigeria.

Industry experts believe that the recent partnerships between fintechs and AfriGO will address one of the biggest barriers to contactless payment adoption – merchant acceptance. With major fintechs driving issuance, more businesses may be incentivized to enable contactless terminals. Malik Asamu, CEO of CashAfrica, noted that the partnerships will accelerate the delivery of contactless payments and explore ways to authorize each transaction before completion, a key concern for Nigerian customers.

Nigeria has yet to see widespread contactless card payments, a system dominant in markets like Europe and China. However, with two of Nigeria's top three fintechs – PalmPay and Moniepoint – now issuing contactless cards, the first real wave of tap-to-pay transactions in Nigeria may begin. The wave of contactless payment in Nigeria may be card-driven rather than mobile-led, as many Nigerians still lack NFC-enabled smartphones required for contactless payment.

As Nigeria gears up for mass contactless adoption, the battle for market share is intensifying. If current trends continue, fintechs may finally drive the shift from PIN-based transactions to tap-and-go payments at scale. The partnership between PalmPay and AfriGO is a significant step towards achieving this goal, and its success could have far-reaching implications for Nigeria's payment landscape.

In conclusion, the partnership between PalmPay and AfriGO marks a significant milestone in Nigeria's fintech revolution. As the country moves towards widespread contactless payment adoption, it will be crucial to monitor the impact of this partnership and the broader implications for Nigeria's digital economy.