Nigerian fintech companies, including OPay and Moniepoint, are moving away from international card schemes like Visa and Mastercard in favor of local alternatives such as Verve. This shift is a response to changing consumer behavior and macroeconomic conditions, including the devaluation of the naira and the rising cost of living. The local Verve card, operated by Nigerian payments unicorn Interswitch, has become a popular choice due to lower costs and fewer complexities compared to international cards.

Key Points:

• Consumer Behavior Shift: The COVID-19 pandemic and subsequent economic changes have reduced reliance on card payments, increasing the popularity of bank transfers.
• Local Card Adoption: Nigerian banks and fintechs, except GTCO, are now issuing Verve cards, with OPay and Moniepoint distributing 13 million and 4 million cards respectively.
• Economic Pressures: Devaluation of the naira and high fees associated with international cards have driven this change.
• Regulatory Environment: The Central Bank of Nigeria’s introduction of the local Afrigo card scheme aims to help banks save costs.
• Fintech Adaptation: Fintechs like Paystack are launching products to facilitate bank transfers, reflecting the rise in this payment method.

✨ Key Highlights:

• 13M Verve cards issued by OPay
• 4M Verve cards issued by Moniepoint
• Shift driven by naira devaluation and high international card fees
• Rise in bank transfers and local card usage

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