A recent report by Euromonitor International reveals that Touch and Pay (TAP) Technologies Limited has driven a significant increase in closed-loop prepaid card usage in Nigeria.
Between 2021 and 2024, the number of closed-loop prepaid card transactions jumped from 2.2 million to 8.6 million, with transaction value rising from ₦6.16 billion to ₦18.03 billion.
TAP’s Cowry card, launched in 2020, is the primary payment method for Lagos State’s mass transit system. The card has gained popularity, with over five million users as of last year. The company claims to have processed over ₦20 billion in transactions in 2024.
The growth in closed-loop prepaid card usage highlights the increasing adoption of cashless payments in Nigeria’s transportation sector. Cashless payments offer convenience, reduce the risk of theft and robbery, and save time.
Experts attribute the rise of prepaid cards to infrastructure developments, such as the launch of the Lagos Blue Line train. The growth also underscores the importance of user adoption in Nigeria’s payment ecosystem.
While challenges remain, the increasing adoption of digital payments in Nigeria’s transportation sector is expected to continue, making cash-free travel a reality for millions.
