Nigeria’s banking sector is witnessing renewed competition as commercial banks resume international transactions on naira debit cards—creating a showdown with fintech firms that have thrived by offering virtual dollar cards over the past three years.
Since 2022, leading banks including Standard Chartered, First Bank of Nigeria, Guaranty Trust Bank, and Zenith Bank suspended international payments on their naira cards.
This opened the door for fintech startups like Chipper Cash, Geegpay, GoMoney, Cardtonic, Wallet Africa, Sendbit, BoldSwitch, and Fundall to fill the gap by offering virtual dollar cards for global payments, according to TheCables.
These digital platforms gained popularity by enabling Nigerians to pay for services such as Amazon, Netflix, Spotify, and YouTube—particularly for users without domiciliary accounts or dollar-denominated cards.
Now, with the return of cross-border functionality on bank naira cards, users are weighing their options.
Factors influencing their decisions include spending limits, FX rates, and transaction charges.
“I’m considering switching to a bank naira card, but only if the spending limit is reasonable,” said Geoffrey Nwankpa, a long-time fintech card user told TheCables.
“The commercial banks would not put absurd limits on international transactions. Imagine putting a limit of $1,000 a month for me. It cannot work. So I hope their limits will be fair”.
Spending caps vary widely. While BoldSwitch and Sendbit offer limits up to $10,000, commercial banks have yet to disclose updated thresholds.
Pricing is also a key differentiator. As of July 11, Chipper Cash pegged the naira-dollar exchange rate at ₦1,714/$, while Eversend offered ₦1,619/$.
Both rates exceed the official and parallel market rates of ₦1,530.26/$ and ₦1,550/$, respectively, according to Monierate data.
On transaction fees, virtual card providers like Geegpay charge $0.50 per dollar transaction and 0.9% on non-dollar payments.
Boldswitch waives charges on U.S.-based sites but applies a 2.5% fee for transactions in other currencies.
In contrast, banks like GTBank and UBA mainly charge value-added tax on transactions.
Despite growing competition, fintechs remain confident.
BoldSwitch told TheCables that the resumption of international card use by banks poses no threat to its operations, citing a loyal user base and differentiated offerings.
Odudu Inyang-Udoh, a user of two virtual credit cards, described his experience with fintech platforms as “seamless” but said he is now reassessing his options.
He noted that factors such as transaction charges, spending limits, and exchange rates will guide his decision, adding that he would readily switch to a naira debit card if it offers better value for online purchases.
“Potentially, I also see ease of payment for online transactions, especially on international platforms. But everything depends on how the advantages of using the naira debit card outweigh virtual credit cards,” Inyang-Udoh said.
It was gathered that banks generally impose lower international spending limits compared to fintech platforms.
Wema Bank and First Bank cap quarterly transactions at $1,500, GTBank limits users to $1,000 per quarter, while UBA enforces a $1,000 limit either daily or monthly, depending on the card type.
In contrast, fintech providers offer significantly higher thresholds.
Chipper Cash and Eversend allow up to $10,000 monthly, Geegpay sets a $5,000 monthly cap, Ufitpay permits $2,000, and Fundall imposes no spending limit at all.
As consumers now face a broader array of payment choices, the battle for wallet share between banks and fintechs is just beginning.
