Nigerians abandon ATMs, choose online transfers - Report

A new report indicates that online transfers are fast gaining ground in Nigeria, relegating Automated Teller Machines (ATMs) to the background.

The report attributed the trend to Nigeria’s growing smartphone usage and mobile applications by banks and fintech for financial transactions.

Mobile apps boost online transfers

Nigerian banks lose N9.5 billion to electronic fraud 10 countries where Nigerian bank customers fell victim to fraud + View more Nigerians ditch ATMs for online transfers Nigeria has seen a significant shift in how Nigerians carry out transactions, with online transfers surging to N2,610.5% in the past decade.

‘The Nigerian Payment Report’ by Zone clarified how online transfers have replaced ATMs as Nigerians' primary mode of financial transactions.

This surge in digital payments has led to a decline in the use of ATMs for transactions.

The report said that in 2012, during the launch of Payment Vision (PSV2022) by the Central Bank of Nigeria (CBN), the aggregate value of ATM transactions in Nigeria stood at N1.98 trillion, while the volume of online transfer payments stood at N31.57 billion.

Online transfers hit N783.6 trillion in 10 years

According to the report, in the next 10 years, the country witnessed a boom in online transfers.

ATM transactions hit about N32 trillion, while online transfers surged to N783.6 trillion, representing a 2,610.15% increase and a 43.78% yearly gain.

Data from the report also indicated that while the total volume of transactions rose by 36.26% from N10.32 trillion to N14.06 trillion in the same period, the total transaction value for online transfers rose sharply from N545.03 trillion in 2021 to N783.66 trillion in 2022, a 43.78% every year.

Leadership reports that recent data by the Nigeria Inter-Bank Settlement System (NIBBS) indicated that the volume of electronic payment transactions in Nigeria increased to N600 trillion in 2023, a 55% increase from N387 trillion in 2022, attributed to the rising adoption of digital payment platforms.

The NIBBS report said the growth shows an improved digital payment infrastructure, allowing firms to encourage online payments and reflecting growing customer confidence in digital platforms for P2P, e-commerce, and bill payment.

The report said: “Concurrently, the total transaction value rose from N8.06 trillion in 2021 to N19.4 trillion in 2022, marking a significant 140.73 per cent year-on-year increase. The convenience and accessibility offered by mobile money services, particularly in remote or unbanked areas, have been key drivers of this growth.”