Fintechs to adopt more contactless payment solutions in 2025 — Experts

Industry stakeholders in the payment sector have revealed that by 2025, contactless payment options will increase in the Nigerian fintech space.

This is as fintech platforms are moving away from passwords and exploring the use of facial and fingerprint recognition for payment services.

During a panel session titled ‘Digital Transformations in Financial Services: Opportunities for Africa’ at the Ibadan startup fest, Markie Idowu, group marketing director at Xpress Payments Solutions Ltd, said, “What we will see in 2025 is the increased use of biometrics. We are moving away from passwords and exploring the implementation of facial and fingerprint recognition for payment services. We need to start looking at solutions in that area.”

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She also mentioned that by 2025, cardless payments will become more prevalent, as people prefer not to carry cards. Many transactions can already be completed using smartphones.

Additionally, Idowu pointed out that the cost of point-of-sale (PoS) machines has become a problem.

“The current economic environment is pushing us to seek alternatives to POS machines. Consumers are increasingly interested in solutions that eliminate the need for these devices. While mobile apps and contactless payments are already available, there is a need to explore more innovative options. Many people still use POS machines for receipts because they are more comfortable with this method. We must develop solutions that align with these evolving preferences,” she said.

Olorunfemi Hanson, head of marketing and communications at PalmPay Nigeria, echoed that device-less payment has come to stay and will become more prevalent in 2025.

According to him, in addition to payment taking a different phase, insurance offerings will also be embedded alongside other services on fintech platforms.

Statista data reveals that in 2023, 40 percent of Nigerians used digital payments for goods and services. This was a significant increase compared to 2020 when the share was nearly 30 percent.

This has shown that Nigeria is at the forefront of technological innovation compared to some countries.

“Nigeria’s instant payment has been in existence for a while now and Europe is just starting theirs now. So, we’ve been ahead in certain things, even in cards we use for payments that have chips and pins, America is just adopting theirs.” Idowu of Xpress Payments said,

According to a recent KPMG report on Investing in Sub-Sahara Africa, fintech has a significant impact on SSA, particularly in its ability to enhance financial inclusion in areas underserved by the formal banking sector,

It said, “44 percent of financial investor respondents expect their organisation’s interest in the space to increase in the next two years compared to the previous two years, while 56 percent of them expect no change. Similarly, a greater portion of strategic investors (88 percent) do not see any change in their organisation’s interest over the next two years compared to the previous two years.”

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On the other hand, Olayemi Cardoso, the Governor of the Central Bank of Nigeria, said during the Bankers’ Committee Annual Dinner, “In 2025, we will prioritise initiatives including implementing our open banking framework, advancing contactless payment systems, and expanding our regulatory sandbox.

“Additionally, we will issue revised guidelines for agency banking and continue to strengthen electronic payment channels.”