Nigeria's Contactless Payments Surge Amid Spending Concerns

The push for contactless payment methods in Nigeria is gaining momentum, with over 12 million contactless cashless cards reported in circulation by the Central Bank of Nigeria (CBN) as of 2025. The CBN's Payments System Vision 2028 aims for broader deployment of these technologies.

In October, Interswitch and its banking partners advanced efforts to enhance contactless payment infrastructure. While this payment method offers convenience, experts caution that its ease of use may lead to impulsive spending, undermining the psychological barriers that help consumers manage their finances.

Research by Marie-Claire Broekhoff and Carin van der Cruijsen indicates that electronic payments, particularly contactless ones, are associated with less perceived pain of paying compared to cash, making it easier for consumers to overspend. The study highlights that cash is perceived as more effective in preventing overspending, raising concerns about users losing track of their spending due to the speed and convenience of contactless transactions.