Card payments will rise in 2025 – Fintava chief

Nigeria’s card payment landscape is poised for significant growth in 2025 as the country deepens its transition to a cashless economy, Co-founder of Fintava, Samuel Ojerinde, said in a note shared with The PUNCH.

Ojerinde, who runs that banking-as-a-service platform, explained that this anticipated surge would be driven by global trends, government policies, and rising consumer demand for secure and convenient payment methods.

“Cards have become the backbone of modern transactions globally, and Nigeria is catching up rapidly,” he said.

Citing data from the Nigeria Inter-Bank Settlement System, Ojerinde said card transactions in June 2024 reached N1.01tn, up from N930.76bn in June 2023 and N923.37bn in July 2023.

He explained that the growth reflects Nigeria’s progress in digital transformation and alignment with global payment practices.

“The numbers from 2024 already show where we’re headed,” he said. “Last year, Fintava produced over 850,000 physical cards for businesses and government entities. By January 2025 alone, we’re set to produce over 400,000 cards, which speaks to the explosive demand for both physical and virtual cards.”

Ojerinde attributed the growth to rising internet penetration and increased smartphone adoption, giving more Nigerians access to digital financial tools.

He also pointed to the Central Bank of Nigeria’s cashless policy, which incentivises non-cash transactions, as a major enabler.

“Contactless technology offers faster, more secure options for transactions, which consumers increasingly value,” he said, adding that advancements like biometric authentication and tokenisation have also bolstered trust in card payments.

Ojerinde noted that the global trend toward cashless transactions is also influencing Nigeria’s payment ecosystem.

He cited a World Bank report, which showed that cashless payments are growing annually by over 12 per cent, with cards leading the trend.

Speaking on the implications for businesses, Ojerinde said the surge in card payments offers a unique opportunity to redefine payment strategies.

He noted that physical cards remain relevant for government programmes, corporate services, and industries requiring identification, while virtual cards are gaining popularity among online shoppers and frequent travellers.

“In 2024, Fintava partnered with businesses and government organisations to issue over 50,000 cards, enhancing customer retention and driving revenue growth.”

While acknowledging challenges like network reliability and consumer trust, Ojerinde said recent advancements in technology and infrastructure are creating a more enabling environment for card payments.

He added that the rise of payment gateways and digital wallet systems has further enriched the financial ecosystem.

Ojerinde expressed confidence that the demand for cards will reshape Nigeria’s financial landscape in 2025.

“The demand for secure and efficient payment options will continue to grow. Businesses that act now to integrate card services will be well-positioned to thrive in this evolving ecosystem,” he concluded.