Nigerian Fintechs dominate transaction volumes in the digital payment space while traditional banks focus on translating digital activity into strong revenue growth.
According to data from the Nigeria Inter-Bank Settlement System, licensed mobile money operators, including OPay, PalmPay, and Moniepoint, processed a combined N71.5 trillion in transactions in 2024. This figure represents a 53.4 per cent surge from N46.6 trillion in 2023.
The growth highlights the expanding reach of fintech platforms, which now serve millions of Nigerians seeking fast, low-cost, and convenient digital payment options.
Moniepoint reportedly handles over one billion transactions monthly, while emerging players such as Anchor are gaining traction through embedded finance solutions for startups and SMEs.
Fintechs’ agility and user-centric models continue to attract micro and retail segments, positioning them at the forefront of Nigeria’s cashless evolution.
Yet, despite fintechs’ dominance in transaction volumes, the country’s biggest banks are proving that profitability—not scale—remains the ultimate measure of digital success.
Data compiled by the Nigerian Tribune show that eight leading banks collectively earned N983.66 billion in fees and commissions in the first half of 2025.
This represents a 39.9 percent increase from N702.84 billion during the same period last year. The surge underscores the banks’ ability to monetize their digital ecosystems, leveraging mobile banking, online transfers, and card transactions as solid revenue channels.
Access Holdings led the pack with N204.70 billion, followed by UBA (N147.04 billion), FirstHoldco (N138.69 billion), GTCO (N135.17 billion), and Zenith Bank (N128.06 billion). Other significant earners included Stanbic IBTC (N114.30 billion), Wema Bank (N45.37 billion), FCMB (N37.91 billion), and Fidelity Bank (₦32.05 billion).
Analysts suggest the shift reflects the banks’ strategic response to Nigeria’s 2023 naira redesign crisis, which accelerated the adoption of cashless payments.
In its aftermath, banks expanded infrastructure, upgraded mobile apps, and strengthened digital onboarding to attract and retain customers.
One analyst succinctly captured the dynamic, observing: “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.”
Still, fintechs’ dominance in retail and peer-to-peer transactions cannot be overlooked. Their affordability, speed, and accessibility have deepened financial inclusion, reaching underserved communities and small businesses.
However, their model remains largely volume-driven, with thinner margins per transaction compared to banks’ fee-based earnings.
To stay competitive, traditional lenders are adopting fintech-style innovation, rolling out virtual cards, SME payment gateways, and mobile-first digital platforms.
Some are also partnering with or investing in fintech startups to enhance innovation and appeal to younger, tech-savvy customers.
Another market watcher noted the beneficial convergence, saying: “Banks bring trust, regulation, and balance sheet strength; fintechs bring innovation and convenience. The synergy between both is shaping a new financial order.”
As of mid-2025, Nigeria’s digital payment ecosystem shows convergence rather than conflict. Banks continue to dominate high-value and corporate transactions, while fintechs lead the retail and small-transaction market.
Analysts predict that the next phase of competition will center on profitability, compliance, and scalability—where fintechs must turn vast transaction volumes into consistent earnings, and banks must sustain innovation within regulatory limits.
For now, the data suggest a balanced coexistence: fintechs are driving reach and inclusion, while banks are harvesting returns and scaling digital profitability. Far from losing ground, Nigeria’s lenders are evolving—profitably—in the nation’s fast-digitizing economy.
