By Annette Ikponmwonba | October 26, 2026
Key Points
· Interswitch and its banking partners are pushing tokenised card payments as a faster and more secure alternative to bank transfers and physical cards
· The plans were outlined at an Interswitch tokenisation documentary press briefing in Lagos at the weekend
· Customers would pay by tapping compatible phones and other devices at payment terminals
· Tokenisation replaces sensitive card details with a substitute identifier, reducing exposure of original credentials
· Payments can be authenticated through fingerprints or facial recognition, cutting the number of steps
· GTBank says Nigeria is at an early stage of adoption, and wider uptake will depend on implementation and consumer acceptance
Main Story
Interswitch and its banking partners are pushing tokenised card payments as a faster and more secure alternative to conventional bank transfers and physical cards, seeking to reduce the steps customers take to pay for goods and services. At an Interswitch tokenisation documentary press briefing in Lagos at the weekend, the company and participating banks outlined plans to expand device-based payments, allowing customers to pay by tapping compatible phones and other devices at payment terminals.
The Managing Director for Payment Processing and Switching at Interswitch Purepay, Akeem Lawal, described tokenisation as a potential turning point for digital payments, predicting a shift in how Nigerians pay. “Where we are going is just tapping,” he said, describing the next stage after cards and bank transfers, Tokenisation replaces sensitive card details with a substitute identifier, known as a token. When supported by compatible devices and terminals, customers can pay using digital wallets and authenticate transactions through fingerprints or facial recognition. “You will have reduced the friction of transacting significantly,” Lawal said.
The Issues
Under the conventional transfer process, customers typically open a banking app, enter an account number and complete several steps. Tokenised payments shorten this by letting users authenticate and tap a device at a terminal. Because original card credentials are not exposed during the transaction, the approach also promises better security.
The initiative builds on earlier shifts in Nigeria’s payments industry, including interbank ATM switching, point-of-sale payments and online transactions. Lawal said these changed how consumers access and move money, and tokenisation could be the next major step, Adoption remains the main challenge. It depends on compatible phones and payment terminals being widely available, and on customers being willing to change habits. GTBank’s Jimmy Banjoko described the market as being at an early stage.
What’s Being Said
Wema Bank Executive Director Tunde Mabawonku stressed the growing role of mobile devices in everyday payments. “This same phone, I should look to tap to make payments on the BRT bus. I should look to tap to make payments on the blue line, the red line,” he said, pointing to opportunities in public transport and international travel.
GTBank’s Banjoko linked the opportunity to changing consumer behaviour. “We see that is a signal to suggest that innovation can go in this line because market behaviour is already tending towards this contactless,” he said. He expects the technology to gain traction as customers move from app-based transfers to tap-to-pay, though wider adoption will depend on implementation and consumer acceptance, The technology could also extend to smartwatches and other wearables, broadening the ways consumers can make contactless payments.
What’s Next
Interswitch and the participating banks plan to expand device-based payments, with transport services such as BRT and rail lines flagged as possible use cases. Attention will turn to how quickly banks roll out support and whether merchants upgrade terminals to accept tap payments, Customer awareness and trust in biometric authentication are likely to shape how fast adoption grows over the coming months.
Bottom Line
Interswitch and its bank partners are betting that tap-to-pay will become the next step in Nigeria’s payments evolution, offering faster and more secure transactions, though success will depend on device and terminal availability and on whether customers embrace the change.
