The Nigeria Inter-Bank Settlement System reports that in 2024, authorized mobile money providers, such as OPay, PalmPay, and Moniepoint, handled a total of N71.5 trillion in transactions.
This amount represents a 53.4 per cent increase over 2023’s N46.6 trillion.
Nigerian Fintechs account for most transactions in the digital payment space, while traditional banks concentrate on converting digital activity into robust revenue growth.
The growth demonstrates how fintech platforms reach millions of Nigerians looking for quick, affordable, and practical digital payment methods.
Moniepoint processes over one billion transactions monthly
According to reports, Moniepoint processes more than one billion transactions monthly, but newcomers like Anchor are gaining ground thanks to their embedded finance solutions for SMEs and startups.
Fintechs are at the forefront of Nigeria’s cashless evolution because of their agility and user-centric models, which continue to draw in micro and retail segments.
However, the nation’s largest banks demonstrate that profitability—rather than scale—remains the key indicator of digital success, even in the face of fintechs’ dominance in transaction volumes.
Fees and commissions totaled N983.66 billion in H1 2025
According to data compiled by the Nigerian Tribune, fees and commissions earned by eight major banks totaled N983.66 billion in the first half of 2025.
This is a 39.9 per cent increase over the N702.84 billion spent during the same time last year. The increase demonstrates how well the banks can commercialize digital ecosystems by using card transactions, online transfers, and mobile banking as reliable revenue streams.
FirstHoldco (N138.69 billion), Zenith Bank (N128.06 billion), UBA (N147.04 billion), and Access Holdings (N204.70 billion) all trailed behind. Fidelity Bank (₦32.05 billion), Wema Bank (45.37 billion), FCMB (37.91 billion), and Stanbic IBTC (114.30 billion) were among the other notable earners.
According to analysts, the change is a strategic reaction by the banks to Nigeria’s 2023 naira redesign crisis, which hastened the push for cashless transactions.
To attract and retain consumers, banks improved their mobile apps, bolstered digital onboarding, and extended their infrastructure.
One analyst encapsulated the dynamic, noting, “Fintechs move money, but banks make money.” He elaborated, “While fintechs thrive on transaction volumes, banks have mastered how to turn digital activity into sustainable revenue streams.”
Dominance of fintechs in peer-to-peer and retail transactions
However, it is impossible to ignore the dominance of fintechs in peer-to-peer and retail transactions. Their accessibility, affordability, and speed have expanded financial inclusion by reaching small businesses and underprivileged communities.
In contrast to banks’ fee-based profits, their model is still primarily volume-driven and has smaller margins per transaction.
Traditional lenders are implementing fintech-style innovation to remain competitive. They are launching digital platforms that prioritize mobile devices, virtual cards, and SME payment gateways.
Some are also investing in or collaborating with fintech startups to boost innovation and attract younger, tech-savvy clients.
“Banks bring trust, regulation, and balance sheet strength; fintechs bring innovation and convenience. The synergy between both is shaping a new financial order,” stated another market observer, highlighting the positive convergence.
Digital payment ecosystem in Nigeria
As of mid-2025, the digital payment ecosystem in Nigeria exhibits convergence rather than conflict. Fintechs are the market leaders for small and retail transactions, while banks still control high-value and corporate transactions.
Analysts predict that fintechs will need to convert large transaction volumes into steady profits, and banks will need to continue innovating within regulatory bounds. They also predict that the next phase of competition will focus on profitability, compliance, and scalability.
The data points to a harmonious coexistence: banks are making money and increasing their digital profitability, while fintechs are expanding their reach and inclusivity. In Nigeria’s rapidly digitizing economy, lenders are adapting—profitably—rather than slipping.