As Nigeria struggles with money scarcity, alternative cash payment options are rapidly gaining popularity in the country. While the traditional cash-based system is the most popular among Nigerians and businesses, more people are exploring alternative payment options lately. Previously, some of these payment options were very popular among Nigerians and businesses as a payment option, but many of them were only sparsely used as a means of payment. Although Nigeria has been through an influx of digital payment methods in recent years, even as it maintained a position as a fintech hub in Africa, cash remained the most preferred means of payment. But the recent struggles with access to cash have led more people to discover other payment options. Some of these payment methods provide secure, fast and convenient ways to pay for gifts, goods and services. Here are five cash payment alternatives in Nigeria.
Mobile bank transfers
Mobile bank transfers are perhaps the most popular alternative to cash in Nigeria right now. These wire transfers allow individuals to transfer funds or pay bills from their bank account to the recipient’s bank account, online, through mobile banking apps, USSD, or at ATMs. It’s a safe and convenient way to make cashless payments. Since 2004, mobile money transfers have become increasingly popular. Although many banks are experiencing technical difficulties since the naira scarcity began, it still remains the most popular cash payment alternative for several businesses.
Nigeria’s digital currency: e-naira
The e-naira, Nigeria’s digital currency, was launched in October 2021 to enable individuals and businesses to make secure and convenient online transactions. The e-naira allows users to make payments for goods and services, pay bills, transfer money and receive payments from customers without cash as it has the same value as the physical naira. The platform uses advanced encryption technologies to protect users’ financial information and transactions. However, the e-naira has seen little adoption since its rollout.
Online payment platforms
Online payment platforms have also become increasingly popular in Nigeria, with platforms like PayPal, Flutterwave and Paystack leading the way. These platforms provide a secure payment gateway that allows individuals to make payments using their debit or credit card or through mobile banking. This option allows donors to send money to the recipient quickly and securely, without having to visit a bank or store.
NQR
NQR is one of the most popular digital payment solutions in Nigeria. It is a platform that allows users to make purchases, transfer money and pay bills using their mobile phones. The system is secure and efficient and uses QR codes to process payments quickly and easily. NQR allows people to scan and pay for items in both physical and online stores, making it an ideal alternative to cash.
Gift cards
Gift cards are a hassle-free and safe alternative to cash payments in Nigeria. They can be purchased from popular retailers and can be redeemed in the store’s store or used to purchase items online. Big stores like Shoprite offer gift cards to their customers, who then use the gift cards to make purchases. Gift cards can be used to make online purchases, pay utility bills, and make other financial transactions.