Mastercard and Interswitch have introduced Google Pay to Nigeria, allowing eligible Mastercard cardholders to make contactless payments using their Android phones. This development brings a major mobile wallet to a market where cash and local cards are still widely used. The service utilizes Mastercard's tokenization technology, which replaces card details with a unique digital credential, ensuring the actual card number is not exposed during transactions.
To use Google Pay, cardholders simply add a supported card to the wallet and tap their phone at any terminal that accepts contactless payments. Interswitch, a Nigerian payments company, collaborated with Mastercard to connect multiple card-issuing banks to the tokenization and processing systems required for the wallet. However, the companies did not disclose the names of participating banks or the number of eligible customers.
According to Kari Tukur, Mastercard's country manager for West Africa, consumers increasingly expect payment experiences that are simple, secure, and seamlessly integrated into their daily lives. Olumide Balogun, Google's country director for West Africa, noted that the launch would make everyday transactions faster and safer by eliminating the need to carry physical cards. He referred to the product as Google Wallet, although the companies' announcement called it Google Pay.
Mastercard is the second-largest card brand in Nigeria, accounting for approximately 30% of the country's card users. Visa holds about 18% of cardholders, while Interswitch's Verve scheme controls around 54% of the market, according to Statista research. However, these shares overlap, as some Nigerians hold multiple cards. The underlying data covers 2019 to 2023, and a more recent breakdown by scheme has not been published.
Verve's leading position is largely due to its high issuance numbers. The scheme recently surpassed 70 million issued cards in Nigeria, having added 20 million in just 15 months. Fintech lenders have contributed to this growth, with OPay and Moniepoint issuing 17 million Verve cards between them. The naira's devaluation has made dollar-denominated international scheme fees more expensive, driving the shift towards local cards.
The rollout of Google Pay does not currently cover Verve or Visa cards, and it is unclear how widely contactless-enabled terminals are deployed. Cash remains a significant part of in-store payments in Nigeria, although its share has declined since the pandemic. The launch comes as Nigerians increasingly adopt electronic payments, with digital payment volumes reaching 11.2 billion transactions in 2026, valued at over 1.07 quadrillion naira.
The introduction of Google Pay offers lenders another way to engage customers on their phones and may enable merchants with contactless-enabled terminals to facilitate faster checkout. The companies did not disclose financial terms or indicate whether other card networks will follow suit. Akeem Lawal, Interswitch's managing director for payment, switching, and processing, highlighted the company's role in building the necessary issuer connectivity, tokenization, and processing capabilities to bring tap-to-pay and wallet-based payments to Nigerian consumers.
Key points
- Eligible Mastercard cardholders in Nigeria can now use Google Pay for contactless payments.
- The service uses Mastercard's tokenization technology to ensure secure transactions.
- The launch marks a significant step towards increasing electronic payments in Nigeria, with digital payment volumes reaching 11.2 billion transactions in 2026.
