Nigeria’s tier-1 banks are strengthening their position in the country’s digital payments market after processing a combined N286.19 trillion in mobile banking transactions in 2025, highlighting how traditional lenders are increasingly competing with fast-growing fintech platforms.
The surge in Nigeria’s digital payment
The surge in Nigeria’s digital payment activity reflects years of sustained investment in mobile banking infrastructure by leading financial institutions, including Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Zenith Bank, and First Bank of Nigeria.
Zenith Bank Leads Digital Transaction Volumes
Industry figures show that Zenith Bank recorded the highest mobile transaction volume among the banks, processing N104.14 trillion during the period.
GTCO followed with N72.4 trillion, while UBA processed N51.65 trillion in mobile banking transactions.
First Bank also reported N58 trillion in mobile transaction volume within the first nine months of 2025, reinforcing the broader growth trend across Nigeria’s digital payment ecosystem.
Analysts say the sharp increase signals a major shift in Nigeria’s financial services industry, where fintech companies previously dominated mobile transaction growth due to recurring service failures and downtimes experienced on traditional banking platforms.
Nigerian Banks Narrow Reliability Gap With Fintechs
Between 2020 and 2023, many Nigerian consumers increasingly turned to fintech apps for everyday transactions because of faster transfers, fewer transaction failures, and smoother user experiences.
However, banks have since invested heavily in upgrading payment infrastructure, improving processing speeds, enhancing cybersecurity systems, and reducing service disruptions.
Industry experts note that improved reliability and stronger mobile banking performance are helping traditional lenders regain competitiveness within Nigeria’s rapidly expanding digital payments market.
Fintech Firms Still Lead in Customer Experience
Despite the gains recorded by banks, fintech companies continue to maintain strong advantages in customer satisfaction and app usability.
According to the 2025 KPMG West Africa Banking Industry Customer Experience Survey, mobile-first fintech platforms still rank highest among Nigerian users for ease of use, speed, and transaction reliability.
Operators such as OPay continue to record high customer satisfaction scores, driven largely by seamless transfers and stable app performance.
Analysts believe competition between banks and fintech firms is now shifting beyond infrastructure reliability toward pricing strategies, product innovation, credit services, and broader financial management solutions.
Digital Payments Reshape Nigeria’s Financial Ecosystem
Nigeria’s continued shift away from cash transactions is accelerating the growth of electronic payments across both banking and fintech platforms.
Stakeholders say the competition between banks and fintech companies is entering a new phase where long-term success will depend less on transaction infrastructure and more on customer experience, digital innovation, and value-added financial services.
As digital banking adoption expands further, both traditional lenders and fintech firms are expected to intensify efforts to capture larger shares of Nigeria’s fast-growing electronic payments market.
