Nigeria is poised to extend financial inclusion and unlock new economic opportunities through A2A. The move mirrors success stories from Brazil, India, and beyond.
The launch of PayU GPO’s account-to-account (A2A) payment service in Nigeria marks a significant milestone in the country’s digital financial inclusion.
The service enables consumers to pay merchants directly from their bank accounts, bypassing cards and intermediaries.
Across emerging and developed markets, A2A payments are gaining traction as a faster, cheaper, and more secure alternative to traditional card-based transactions.
Their ability to bypass intermediaries like credit card networks makes them especially appealing to businesses and consumers alike.
A2A payments lower transaction costs for merchants, enable real-time settlement, and offer a seamless user experience. With only a bank account required, A2A payments help reduce reliance on cash and expensive point-of-sale devices, often using QR codes for easy transactions.
For consumers, they provide greater accessibility and more payment options, especially for those without access to credit or debit cards.
Importantly, A2A systems also support transparent government payments and broader participation in e-commerce, especially in rural and underserved areas.
Nigeria, often called Africa’s mobile-first giant, with the largest mobile-first population in the continent has seen a growing appetite for cashless transactions.
With the largest mobile-first population on the continent, the timing of PayU GPO’s A2A launch in Nigeria aligns with global momentum around real-time, direct bank transfers.
The country is no stranger to A2A infrastructure. The NIBSS Instant Payment (NIP) system, Nigeria’s first major A2A network, underpins many digital payment services today — from mobile apps to USSD-based transfers.
While NIP has long provided the underlying A2A infrastructure, PayU GPO brings an international payment company’s expertise, technology, and global partnerships into the Nigerian A2A space. This reflects growing confidence in Nigeria’s digital economy and signals that Nigeria is being integrated into global payment trends — similar to what’s happening in India, Brazil, and other emerging markets.
This reflects rising confidence in Nigeria’s digital economy and its integration into global payment trends seen in markets like India and Brazil.
Across the world, A2A payments have expanded rapidly, fueled by open banking initiatives and real-time payment infrastructure.
In many emerging markets like Nigeria, Kenya, and India, USSD technology (Unstructured Supplementary Service Data) allows millions to access financial services without smartphones or internet connections.
Brazil offers one of the most successful examples. The Central Bank’s Pix system, launched in 2020, has transformed payment habits, enabling instant transfers 24/7.
Pix now accounts for more than 30% of Brazil’s e-commerce transactions.
In Brazil, Pix has brought millions of unbanked individuals into the formal financial system, enabling subscription payments and digital services previously inaccessible to those without cards.
India’s Unified Payments Interface (UPI) has similarly reshaped its payment landscape, facilitating instant, real-time bank transfers and boosting digital financial inclusion.
It has empowered rural entrepreneurs, small businesses, and women by connecting them to the digital economy. Millions of previously unbanked Indians now use UPI for daily transactions, receiving government benefits, and even building credit histories.
Even developed countries like the United States are catching up. Real-time payment networks like FedNow and RTP offer quicker, low-cost alternatives to traditional systems like ACH transfers.
FedNow offer faster access to wages and government benefits, enhancing financial resilience for lower-income groups.
However, experts say the U.S. still has much to learn from emerging markets, particularly around building resilient, inclusive systems that incorporate options like USSD for those without consistent internet access.
For Nigeria, A2A payments already account for 32% of e-commerce transactions — a figure projected to rise to 34% by 2027.
PayU GPO’s entry is expected to accelerate this trend, providing small businesses, vendors, and consumers with a low-cost, mobile-first payment option.
With only a bank account required, A2A payments help reduce reliance on cash and expensive point-of-sale devices, often using QR codes for easy transactions.
Importantly, A2A systems also support transparent government payments and broader participation in e-commerce, especially in rural and underserved areas.
As A2A payments continue to grow globally, Nigeria’s latest step underscores the country’s ambition to build a more inclusive, efficient, and digitally-driven financial ecosystem.
