The Global Payments Report 2025 by WorldPay has revealed that Nigeria is leading the way in reducing cash transactions among seven major economies. This shift is attributed to the increasing popularity of mobile banking, fintech innovations, and government initiatives promoting cashless transactions.
Fintech companies have played a significant role in revitalizing cashless transactions by introducing faster and more efficient banking solutions. Digital wallets, in particular, have gained popularity, accounting for over a third of global consumer-to-business spending in 2024, totaling over $15.7 trillion. It is projected that by 2030, combined consumer digital wallet spending will exceed $28 trillion, surpassing the US GDP in 2023.
Nigeria’s position at the forefront of the digital payments trend is highlighted by the significant decline in cash transactions recorded in the country. According to the Worldpay Global Payments Report 2024, Nigeria saw the largest drop in cash usage between 2014 and 2024 compared to other key markets.
The table below shows the percentage decline in cash usage across different countries:
1. Nigeria – 59%
2. Indonesia – 44%
3. Philippines – 43%
4. Mexico – 41%
5. Japan – 31%
6. Germany – 24%
7. Colombia – 22%
Nigeria’s progress towards digital payments is commendable, considering its absence from recent rankings of African nations with high digital payment engagement. This shift is driven by the adoption of digital payment methods like mobile wallets, bank transfers, and contactless card payments.
Government policies, fintech innovations, and increasing internet penetration have propelled Nigeria towards a cashless economy. The report predicts that cash usage in Nigeria will further decline to 32% by 2030 as digital payment adoption continues to rise.
Additionally, Nigeria’s e-commerce market is projected to double from $13 billion in 2024 to $26 billion in 2030, with a compound annual growth rate of 12%. Similar trends are observed in the Philippines and Indonesia, where government initiatives and the widespread use of e-wallets are driving the shift towards digital payments.
However, cash remains resilient in some regions, particularly among populations with limited access to banking infrastructure. Overall, Nigeria’s progress in embracing digital payments signifies a positive shift towards a more efficient and secure financial landscape.
