When cash is the enemy: The potential of a cashless Nigeria remains untapped

When it comes to the role of physical currency in Nigeria’s evolving financial landscape, there are mounting costs and challenges that can no longer be ignored. While cash remains king and the dominant form of payment, the expenses and burdens associated with its usage are becoming increasingly apparent.

From the production and distribution of physical currency to the costs of handling and securing cash, the financial burden is substantial. Research has shown that cash-based economies like Nigeria face transaction costs that are 4-10 times higher than those reliant on digital payments. This results in the loss of millions of dollars each year, funds that could be redirected to more productive uses or invested in vital sectors such as healthcare and education.

These complexities not only hinder the efficiency of transactions, but they also contribute to the growth of an informal economy. Long queues and frustration at ATM terminals serve as reminders of the limitations of cash, while businesses struggle to manage large sums of money, leaving them vulnerable to theft and errors.

The necessity of transitioning to a cashless society has become increasingly apparent in recent times. Amidst a recent cash crunch accompanied by transaction failures, Verve cards emerged as a crucial lifeline for many Nigerians. In supermarkets, where physical cash dwindled, Verve transactions facilitated the uninterrupted flow of essential supplies, staving off potential panic. Street markets, typically bustling with cash exchanges, experienced a notable shift as contactless Verve payments, facilitated through its partnership with Moniepoint, Opay etc, supplanted the chaos brought on by cash scarcity.

The immediate impact on businesses was profound – operations streamlined, financial security ensured, and confidence fostered during uncertain times. While the cash crunch underscored the limitations of a physical currency-based economy, Verve showcased the transformative potential of cashless transactions, providing a practical and resilient solution in the face of scarcity.

It’s no surprise that partners like Opay and Monnie Point have achieved significant milestones in a short period. While the Verve partnership isn’t the sole factor, its pivotal role cannot be undermined. Verve card holders now enjoy a myriad of services, with their Verve cards serving as the gateway to expanded opportunities.

In neighbouring Ghana has made significant progress in reducing its dependence on cash by embracing digital currency. Nigeria, too, is at a crossroads, deciding whether to cling to the familiarity of cash or embrace the transformative potential of a cashless future.

While cashless alternatives are emerging, uneven ecosystems have hindered widespread adoption. However, Verve, a Nigerian payment card network, is playing a key role in driving the adoption of card-based transactions in the country. The company’s commitment to providing convenient, secure, and efficient payment solutions has positioned it as a leader in the industry. Verve offers a safe, affordable, and widely accepted platform that bridges the gap between cash and digital transactions.

The widespread use of Verve cards reflects a growing acceptance of digital transactions, marking a shift away from reliance on cash. By empowering individuals and businesses to embrace cards, Verve is paving the way for a more inclusive and efficient financial landscape.