10 Oct African eCommerce Payments: Survey of Nigerian Online Payment Methods For eCommerce

I was reading an interesting Global Payments Report on Nigeria which recently surveyed payment methods in use.  

In Nigeria, Cash is King and almost half eCommerce payments are made in cash. Nigeria is a credit card and debit card culture when it comes to the middle and upper classes who are the most prevalent target market for multinational eCommerce.

In 2018, 25%  of the population was connected to the internet.   According to their 2017 stats which are a little dated, 10% of users paid with mobile money.  When it comes to cards, the most popular is Verve (a local card) with 58%, then Visa 23% and MasterCard with 19% (In African Payment Solutions eCommerce, online payments, and processing experience, most payments are with Visa Debit Card, then MasterCard and Verve).  

The most popular payment methods for online payment for eCommerce in Nigeria were Bank Transfer 25%, COD 24%, Debit card 16%, eWallet 10%, Prepaid cards 8%, PrePay 7% and Credit card 7%.  Nigeria online payments are dominated by Bank Transfer and Cards. Mobile money is more for the unbanked rural areas and not yet a significant payment method for eCommerce.

eCommerce is projected to grow from $1bn in 2018 to $3bn in 2022.  The most popular alternative payment methods are Bank Transfer, PayPal and KongaPay (which is the local payment method by Konga, a large local eCommerce company who has their online payment method).

Click here to get up and running with the key payment methods in Nigeria

"Global Payments Report - Payments Cards & Mobile." https://www.paymentscardsandmobile.com/wp-content/uploads/2018/11/Global-Payments-Report_Digital-2018.pdf.