Drawing on insights from the Advanced Payments & Fintech Report 2025 and our strategy consulting experience in Africa’s payments industry, this brief outline how Nigerian payment companies — and those entering the market — can turn disruption into competitive edge. The sector is expanding as cash use declines, mobile adoption rises, and the Central Bank drives interoperability. Yet competition is intense, with fintechs, bank-led wallets, and cross-border players converging on the same customers. Winners will be those who align technology bets with revenue growth, operational efficiency, and regulatory agility. 

1. AI as a Profit Driver 

Globally, 85% of leading PSPs use AI for fraud prevention, and over half for processing automation. In Nigeria, fraud risk inflates compliance costs and erodes merchant trust. 
Strategic play: Integrate AI into high-volume channels to detect fraud in real time and use AI-driven segmentation to upsell credit, FX, or insurance. In our advisory work, PSPs that applied AI in both fraud and customer analytics saw measurable gains within the first year. 
Impact: Lower fraud loss ratios, faster dispute resolution, and increased merchant lifetime value. 

2. Wallets and Super-Apps for Retention 

Mobile wallets are projected to hit 77% of global e-commerce value by 2028. Locally, mobile money penetration exceeds 50%, yet most wallets are undifferentiated. 
Strategic play: Expand payments into ecosystems with loyalty, micro-lending, insurance, and investment services. Integrate with retail and e-commerce for frictionless checkout. 
Impact: Higher transaction frequency, stronger customer retention, and diversified revenue streams. 

3. Cross-Border Payments as a Growth Channel 

B2B cross-border flows will rise from $401T in 2024 to $561T by 2030, while Nigerian businesses face high fees and slow settlements. 
Strategic play: Offer multi-currency virtual accounts for merchants and SMEs, and partner regionally to enable near-instant intra-African payments under AfCFTA. Our project work in this space shows that aligning treasury, compliance, and partnership strategy early can cut go-to-market time by months. 
Impact: Increased merchant acquisitionexpanded revenue beyond domestic flows, and improved working capital cycles. 

4. Blockchain for Merchant Trust 

Blockchain adoption will hit $162.8B globally by 2027, with PSPs using it to speed up settlement and improve transparency. In Nigeria, merchants often cite slow payouts as a top pain point. 
Strategic play: Use blockchain-based reconciliation for high-volume merchants, enabling faster, dispute-free settlements. 
Impact: Reduced churn, stronger merchant loyalty, and improved operational efficiency. 

5. IoT Payments for First-Mover Advantage 

The IoT payments market is worth $711B in 2024, with over 40B connected devices expected by 2027. Nigerian adoption is minimal, offering a niche opening. 
Strategic play: Partner with device makers to embed payments into fuel pumps, vending machines, tolling, and utilities. 
Impact: Revenue diversification, reduced cash leakage, and improved throughput in high-traffic locations. 

Execution Imperatives 

• Differentiate beyond fees: Win on merchant experience, speed, and added value. 

• Design for interoperability: Align with CBN’s vision and ensure seamless integration across bank and fintech systems. 

• Leverage partnerships: Entrants can fast-track market penetration via alliances with banks, telcos, and agent networks. 

• Anticipate regulation: Build systems that meet emerging CBN directives on AML, data privacy, and cross-border flows. 

Bottom Line: 
Our experience working with payment companies in high-growth African markets shows that the next three years will determine market leadership in Nigeria. Operators who embed AI, evolve into ecosystems, capture cross-border flows, and lead in blockchain and IoT will not just defend market share — they will expand it. Those who wait risk being locked out by faster, more agile competitors. 

Author

H. Pierson Business Advisory Team