Nigeria’s informal digital economy, where most women entrepreneurs operate, accounts for about 57% of the country’s GDP and supports over 80% of the nation’s workforce, according to the International Monetary Fund (IMF). For decades, these businesses ran on cash: vulnerable to theft, constrained by geography, and invisible to formal financial systems.
But this is changing. A quiet but profound shift is underway, driven by digital payments. According to the Nigeria Inter-Bank Settlement System (NIBSS), mobile money transactions surged past 30 billion naira daily in 2024, and women are increasingly part of this boom. Enhancing Financial Innovation & Access (EFInA) reports that 43% of women-owned informal businesses now accept some form of digital payment, compared to just 28% in 2020.
In Nigeria’s South-South and South-East regions, where access to physical banks can be limited and markets are often underserved, digital payments are doing more than modernising transactions. They’re unlocking entirely new income streams, expanding market reach, and offering safer, more reliable ways for women to grow their businesses.
For women in the South-South and South-East, where infrastructure and market access challenges often intersect, tools like mobile transfers, POS terminals, and payment apps have become more than conveniences; they are lifelines. These technologies allow women to reach customers beyond their immediate communities, secure safer transactions, and unlock new streams of income that would have been impossible in a cash-only world.
But while the promise is clear, the journey is far from complete. Infrastructure gaps, digital literacy barriers, and high transaction costs continue to hold many women back. This article explores how digital payments are transforming women-led businesses in Nigeria, the opportunities they create, and what still needs to change for this shift to truly empower all.
Here`s How Digital Payments Are Changing the Game
Reaching Beyond Local Markets
For many women entrepreneurs, digital payments erase one of the oldest barriers: geography. A tailor in Aba or a hair stylist in Calabar no longer depends solely on customers who walk through their door. With payment links or mobile transfers, they can serve clients in Lagos, Abuja, Accra, or anywhere logistics can reach.
In a 2023 study by the Centre for Financial Inclusion, 61% of women using digital payments said it helped them attract customers outside their local community.
Safer, More Secure Transactions
Carrying cash comes with risk, particularly for women navigating crowded markets or travelling long distances to buy supplies. Digital payments reduce that exposure. Money goes straight into an account or mobile wallet, minimising theft and loss.
Data from Women’s World Banking Nigeria shows that women merchants who adopted digital payments reported a 30% drop in incidents of business-related theft.
Building a Financial Identity
In a cash economy, there’s no paper trail. Digital payments change that. Transaction histories help women track income, apply for loans, and demonstrate business viability, especially important when seeking microcredit or grants.
EFInA data indicates that women entrepreneurs who adopted digital payments were 2.5 times more likely to secure small business loans compared to cash-only peers.
New Income Streams from Digital Ecosystems
Some women aren’t just using digital payments for their core business; they’re creating entirely new ventures. POS agent services, mobile money transfers, and airtime sales are becoming side incomes, especially in rural or semi-urban areas where financial access is thin.
By 2024, women accounted for over 35% of Nigeria’s 1.9 million POS agents, according to the Shared Agent Network Expansion Facility (SANEF).
Barriers Holding Women Back
While the gains are clear, significant challenges remain:
Digital literacy gaps — Many women, especially older traders or those in rural areas, still fear digital tools or don’t fully understand how to use them.
Infrastructure issues — Power outages, poor internet, and unreliable networks cause transaction delays that frustrate both entrepreneurs and customers.
Cost of transactions — High fees from POS agents or mobile money services eat into already tight margins, especially for small-value transactions.
Trust deficits — Some customers hesitate to pay digitally, fearing fraud, failed transfers, or disputes that are hard to resolve.
A 2024 Afrobarometer survey found that 42% of informal women entrepreneurs cited “fear of fraud” as their top reason for slow adoption of digital payments.
The Role of Fintech, Policy, and Ecosystem Players
The fintech sector is helping address these gaps. Companies like Opay, Moniepoint, Paga, and other newer players in the region are creating low-cost, mobile-first solutions and expanding agent networks deep into underserved areas.
Some are also offering features beyond payments, like inventory management, invoicing tools, and savings wallets, to help women manage and grow their businesses.
But this can’t be left to the private sector alone. For digital payments to truly transform women’s economic lives, we need:
Policy support — Reduce transaction fees, improve consumer protections, and incentivise digital literacy programs tailored for women.
Infrastructure investment — Expand reliable internet and energy access so that digital transactions can function consistently.
Cross-border solutions — Many women traders operate informally across borders. Platforms that allow them to send, receive, and spend in local currencies across Africa (without dollar conversion) could supercharge regional trade.
Women contribute significantly to the estimated \$19 billion in informal intra-Africa remittance flows annually (World Bank, 2023).
A Pan-African Opportunity
What’s happening in Nigeria is part of a bigger opportunity across Africa. Women traders, vendors, and service providers move billions across borders informally, especially in regions like West Africa, where cross-border commerce is daily life.
Imagine a digital payment system that allows women to receive Ghanaian cedis, Kenyan shillings, or CFA francs directly, without expensive conversion to dollars first. This is where intra-Africa remittance-focused fintechs, like Hizo Africa and others, are stepping in to build channels for Africans to send, receive, and spend their local currencies within the continent.
For women entrepreneurs, this could unlock even greater income streams, reduce reliance on middlemen, and give them a stronger stake in Africa’s economic future.
Building an Inclusive Digital Economy
Digital payments have already started reshaping how women in Nigeria’s South-South and South-East do business. But the journey is just beginning.
For this revolution to be truly inclusive, we must ensure:
• More affordable and reliable digital services
• Tailored training programs for women at different literacy levels
• Stronger protections against fraud
• Systems that value and centre the realities of informal women entrepreneurs
In the hands of women, digital payments aren’t just about faster transactions. They’re about dignity, opportunity, and economic power. And when women thrive, communities rise.
A Future Powered by Women and Digital Payments
Digital payments are doing more than changing how women get paid. They’re opening doors to markets, making income safer, creating credit histories, and enabling side hustles. But the full promise will only be realised when technology, policy, and community efforts align to break down remaining barriers.
As more women entrepreneurs embrace digital tools, the potential impact on families, communities, and the wider economy is enormous. When women earn more and manage money safely, everyone benefits.
In the end, digital payments aren’t just about speed or convenience. For millions of Nigerian women, they’re about dignity, opportunity, and power in the palm of their hand.
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