Report: 81% Nigerian Consumers Prefer Multiple Payment Options

A recent research report has shown that after more than one year that the dreaded coronavirus struck the world, global consumer spending habits, Nigerians inclusive, have shifted online, in order to embrace contactless tap-and-go payments and online shopping.

Contactless technology was the digital catalyst to explore new payment options because of its fast, secure, and touchfree experience. Between the first quarter of 2020 and the same period in 2021, more than 100 markets saw contactless as a share of total in-person transactions grow by at least 50 per cent.

The report of the research conducted by Mastercard, showed that in Nigeria, the adoption of new payment technologies was rising, and consumer appetite for new, fast and flexible digital experiences continues to grow.

The Mastercard New Payments Index showed that over three in four Nigerian consumers, which is about 84 per cent, will prefer to shop at small businesses, if they offered more payment options. About 81 per cent noted they would be more excited to shop at retailers that can offer the latest payment methods, and an equal proportion. Another 81 per cent said they would be more loyal to retailers who offered multiple payment options.

According to the report, the behavior shift was reinforced by the desire for consumer choice, with 89 per cent saying that they expect to make purchases when they want and how they want. “The businesses that can provide multiple ways to shop and pay are best positioned to meet these expectations. As the demand for emerging payments and choice continues, it requires a wider range of payment solutions, insights, and products to meet the accelerating enthusiasm for the future state of pay,” it stated.

The report index also showed that 96 per cent of Nigerian consumers would consider using at least one emerging payment method, such as cryptocurrency, biometrics, contactless, or QR code, in the next year.

Over two-thirds of respondents, about 66 per cent, agree they have tried a new payment method they would not have tried under normal circumstances, but the pandemic has galvanized people to try flexible new payment options to get what they want, when they want it.

Analysing the report, the Chief Product Officer at Mastercard, Craig Vosburg, said: “The pandemic made us think differently, partly out of necessity. To deliver the choice and flexibility that consumers need – and increasingly expect –retailers worldwide need to offer a range of payment solutions that are easy to access and always on. As we look ahead, we need to continue to enable all choices, both in-store and online, to shape the fabric of commerce and make the digital economy work for everyone.”

Division President, Mastercard, sub-Saharan Africa, Raghav Prasad, said: “The world as we now know it has changed dramatically since the outbreak of the pandemic, accelerating long-term shifts in consumer transaction and payment methods. We continue to work with our merchants, fintechs and banking partners to rapidly innovate payment options that meet consumer needs while ensuring we drive financial and digital inclusion.”