According to data released by the Nigeria Inter-Bank Settlement Systems (NIBSS), licensed mobile money operators like Opay, Palmpay, and 15 others facilitated transactions valued at N46.6 trillion in 2023, marking a significant milestone in the country’s financial sector.
This figure represents the highest annual mobile money transactions recorded, showing a remarkable 140% increase compared to the N19.4 trillion transactions in 2022, as reported by the NIBSS.
Furthermore, the volume of mobile money transactions surged by 326% during the same period. In 2022, the volume stood at 714 million transactions, whereas in 2023, it soared to 3.04 billion, highlighting the growing reliance on digital financial services.
Several factors drove this surge in mobile money transactions. Notably, technical issues experienced on banking apps in early 2023, coupled with cash scarcity, prompted many Nigerians to turn to online banking solutions. Mobile money operators emerged as reliable alternatives during this period, offering swift and seamless transactions.
Moreover, the appeal of incentives provided by operators like OPay and Palmpay, such as free transfers and cashbacks, further encouraged customers to adopt mobile money services for their financial needs.
It’s noteworthy that the Central Bank of Nigeria has licensed 17 companies as Mobile Money Operators, though only 17 out of over 200 fintech companies in Nigeria hold licenses to provide mobile money services.
Mobile money involves using mobile phones to initiate, authorize, and confirm the transfer of value from various types of accounts. The licensed companies providing these services include:
1. Abeg Technologies Limited
2. Chams Mobile
3. eTranzact International Limited
4. Fortis Mobile Money Limited
5. Funds And Electronic Transfer (FETS) Limited
6. Hedonmark Management Services Limited
7. KongaPay Technologies Limited (Formerly Internet Limited)
8. Mkudi Limited
9. NowNow Digital Systems Limited (Formerly Contec Global Infotech Limited)
10. Opay Digital Services Limited (Formerly Paycom Nigeria Limited)
11. Pagatech Limited
12. PalmPay Limited
13. Parkway Projects Limited
14. Teasy International Company Ltd.
15. Visual ICT Limited
16. VTNetwork Limited
17. Xpress MTS Limited
It’s important to note that not all 17 licensed companies are actively providing mobile money services, and some have additional licenses enabling them to offer other services within the payment ecosystem.
