New Payments Partnership on Expanding Cardless Payment Across Nigeria

Why It Matters

The deal bridges the long‑standing gap between bank‑led merchant acceptance and telco‑led mobile‑money, unlocking new revenue streams for merchants and expanding financial inclusion for millions of Nigerians.

Key Takeaways

• Redtech, MoMo PSB, and UBA launch “Pay with MoMo” across 55,000 merchant locations
• RedPay POS terminals have processed over ₦278.47 bn (~$605 m) in transactions
• MoMo PSB wallet users can now pay at UBA branches and online merchants
• Partnership bridges bank-led acquiring with telco‑led mobile‑money, boosting financial inclusion
• Expansion plans target additional African markets where UBA and MoMo PSB operate

Pulse Analysis

Nigeria’s payments landscape has long been split between traditional bank‑driven point‑of‑sale systems and the rapid growth of mobile‑money wallets owned by telecom operators. While banks offer extensive merchant networks, mobile‑money providers have amassed large, under‑banked consumer bases. The lack of seamless connectivity has forced merchants to choose one channel, limiting transaction volume and customer reach. Recent regulatory encouragement from the Central Bank of Nigeria for open‑banking standards has set the stage for collaborations that can finally unite these parallel ecosystems.

The Redtech‑MoMo PSB‑UBA alliance operationalises this vision by embedding MoMo wallet functionality directly into RedPay POS terminals already deployed at UBA merchants. With over 55,000 terminals handling roughly $605 million in value and 12.23 million transactions, the partnership instantly expands payment options for both consumers and merchants. For merchants, the added MoMo channel promises higher footfall and reduced cart abandonment, while wallet users gain the convenience of paying at any UBA‑linked store or online checkout without cash. The integration also enables real‑time deposits and withdrawals at UBA branches, further blurring the line between banking and mobile‑money services.

Beyond Nigeria, the initiative signals a broader shift in African fintech strategy: building interoperable layers that can be replicated across borders. As UBA and MoMo PSB roll the solution into other markets where they have a presence, they create a scalable template for cross‑border payments and regional commerce. This could intensify competition with global players like Visa and Mastercard, while also prompting regulators to refine standards for data sharing and consumer protection. Ultimately, the partnership not only drives immediate transaction growth but also lays groundwork for a more inclusive, digitally unified African economy.