Nigeria's small and medium-sized enterprises (SMEs) are increasingly turning to digital payments to drive growth, with 67% already accepting mobile payments, according to Mastercard's 2026 SME Confidence Index. The index also found that 45% of SMEs accept card payments, while 42% accept online payments. This shift towards digital payments is happening in a market where transactions are becoming deeply embedded in everyday life and commerce.
The growth of digital payments in Nigeria is reflected in the increasing number of transactions processed through the NIBSS Instant Payment system. In 2024, nearly N11 billion transactions were processed, up from approximately N5 billion in 2022. This growth is also being driven by the expansion of Nigeria's ecommerce market, which is projected to grow from around $9.5 billion in 2025 to $18.7 billion by 2030, according to Modor Intelligence.
For Nigerian SMEs, commerce is increasingly happening across multiple channels, including social media, online marketplaces, and physical stores. Customers expect to be able to pay easily, safely, and through the method that works best for them. This is where frictionless acceptance proves its value, helping businesses meet customers where they are. Frictionless payment solutions remove unnecessary steps between customer interest and payment, giving merchants the flexibility to accept payments in-store, online, and on mobile.
However, the cost of acceptance remains a barrier for many Nigerian merchants. To address this, Mastercard is expanding hardware-light acceptance in Nigeria through its QR-on-Card solutions with UBA and WEMA. This allows merchants and service providers to accept digital payments through a smartphone rather than a dedicated terminal hardware, reaching 1.8 million SMEs and gig workers in 2025.
Digital payments can also create a reliable record of business activity, making it easier for SMEs to reconcile sales, understand cash flow, and manage revenue. This record can also create a credit file, opening pathways to working capital, supply-chain finance, insurance, and business-management tools. Mastercard's collaboration with Boost, launched in 2024 across six African markets, combines digital payment wallets with embedded supply-chain finance for distributors, wholesalers, and retailers.
The progression from digital acceptance to transaction records, and then to stronger financial profiles and access to finance, is straightforward. Mastercard's SME Confidence Index found that 69% of Nigerian SMEs surveyed are seeking credit to support expansion, while 73% plan to accept digital payments across multiple channels. However, 63% are still putting business spending on personal cards, highlighting a gap in SME finance.
To make digital payments work for Nigerian businesses, payment infrastructure must be more useful to the businesses that depend on it. This requires secure, affordable, and easy-to-use acceptance solutions across cards, transfers, mobile, and QR. Mastercard's collaboration with TeamApt, a subsidiary of Moniepoint, allows TeamApt to operate directly on Mastercard's global network as a non-bank aquirer, bringing licensed entities onto its platform to accept and process payments.
Key points
- 67% of Nigerian SMEs accept mobile payments
- Nigeria's ecommerce market is projected to grow to $18.7 billion by 2030
- Digital payments create a reliable record of business activity, enabling SMEs to access finance and drive growth
