CashAfrica and PalmPay are igniting contactless payments in Nigeria. Payments like cash transactions, debit card transactions, USSD and bank transfers are the dominance in Nigeria financial landscape. But as PalmPay and CashAfrica are joining force in rolling out tap-to-pay functionality on PalmPay's POS terminals, contactless payment could be a turning point for digital payments in Nigeria.
Contactless payment is a quick way to pay for things without swiping a card, typing a PIN, or using cash. You just hold your debit/credit card, smartphone, or smartwatch near a card machine (usually for a second or two) until it beeps or flashes. This payment system works by using cards or devices (like phones) that have a tiny chip that sends payment details wirelessly to the machine.
CashAfrica is a Nigerian fintech startup established in 2023, specializing in contactless payment solutions. They provide an API, known as CashTap, which enables banks and fintech companies to integrate tap-to-pay features into their mobile applications. Palmpay, one of Nigeria largest fintechs, will depends on this CashAfrica’s CashTap—a contactless technology system—which will enables PalmPay’s POS system to process NFC-based transactions from customers’ debit/credit cards, mobile wallets/smartphones, and wearables.
In other words, CashAfrica will charge PalmPay on a per-API-call basis, meaning the fintech will incur costs each time a contactless transaction is processed. This partnership will further solidifies cashless economy in Nigeria. South Africa is known as the home for cashless economy in Africa. Financial markets including Europe and China are also homes for contactless payments. PalmPay and CashAfrica are both pushing Nigeria to join the race to be a cashless economy society and home where contactless payments reside.
