With the increasing popularity of contactless payment methods in Nigeria, consumers are being urged to remain cautious about impulsive spending. This payment innovation, while not yet widespread, is seeing significant interest in a financial landscape where transaction volume and financial inclusion are expanding rapidly.
According to the Central Bank of Nigeria (CBN), more than 12 million contactless cashless cards were reported in circulation as of 2025. The CBN has also recently launched its Payments System Vision 2028, which aims to further enhance contactless technology deployment across the country.
Key industry players, such as Interswitch, have collaborated with banking partners to bolster the infrastructure necessary for supporting contactless payments. This payment method, which allows users to complete transactions simply by near-field communication (NFC) with their cards, phones, or wearables, offers unparalleled convenience but also carries a risk of overspending.
Experts highlight that the ease of use associated with contactless payments can undermine the psychological barriers that help consumers regulate their spending. This phenomenon has been observed in other countries where contactless payments are more established. Research indicates that users often feel less ‘pain’ in spending when using digital payment methods compared to cash, potentially leading to unintentional overspending.
Financial analysts, such as Dr. Titi Fowokan, warn that individuals with less financial discipline may be particularly vulnerable to increasing their spending habits in light of this convenience.
