Mobile Payments Showdown: Comparing Nigeria’s Opay & Moniepoint vs. South Africa’s SnapScan & Zapper

Mobile payments Nigeria vs South Africa have transformed how people send and receive money across Africa. In Nigeria, platforms like Opay and Moniepoint have made cashless transactions easier for millions. Meanwhile, in South Africa, SnapScan and Zapper have become popular for their seamless payment solutions.

Opay and Moniepoint offer money transfers, bill payments, and even small business solutions. Their ability to operate without relying on traditional banks has made them popular among Nigerians.

In South Africa, where the banking system is more structured, mobile payment platforms like SnapScan and Zapper have evolved differently. These apps focus on quick, secure QR-code payments, making them a favorite among businesses and customers looking for a cash-free, card-free transaction experience.

Hence, this article will compare mobile payment platforms in Nigeria and South Africa, explaining how they work, their market reach, and their impact on businesses and everyday transactions.

How Mobile Payments Started in Africa

With millions of people lacking access to traditional banking and many areas still struggling with poor infrastructure, FinTech has stepped in to bridge the gap. It makes it easier for people to send, receive, and manage money without the need for a physical bank.

A study by McKinsey & Company highlights how digital payments in Africa have grown significantly. In Nigeria, mobile money transactions skyrocketed, doubling to nearly 800 million in 2020. Increased smartphone usage, better internet access, and a growing trust in digital financial services fueled this surge.

Meanwhile, in South Africa, online shopping saw a major boost, with transactions increasing by around 40% between 2020 and 2021. This was. This was largely due to lockdowns that forced businesses and consumers to shift online.

One of the biggest factors driving this rapid growth is the rising demand for cross-border payments in Africa. With millions of people working, trading, and sending money across different countries, the need for seamless, low-cost international transactions has never been higher.

Mobile wallets and FinTech apps are making this process easier. They allow users to transfer money instantly across borders without paying high fees or waiting for processing times.

Nigeria’s Mobile Payment Platforms

Opay

Opay entered the Nigerian market in 2018 as a ride-hailing service under its parent company, Opera, a well-known Chinese tech firm. However, the company quickly realized that the real opportunity in Nigeria lay in mobile payments.

With millions of Nigerians struggling to access traditional banking, Opay shifted its focus to providing digital financial solutions, making it easier for people to send and receive money.

Today, Opay does much more than just mobile payments. The platform allows users to transfer money, pay bills, and buy airtime, all from one app. Its affordable transaction fees have made it a go-to choice for many Nigerians, especially small business owners who rely on fast and seamless payment solutions to run their daily operations.

By 2020, the platform had processed transactions worth over $1.4 billion, proving how quickly Nigerians embraced digital payments.

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Moniepoint

Moniepoint started in 2015 as a company that built payment systems for banks. Over time, it saw the growing need for more accessible financial services and decided to expand. By 2023, it had transitioned into a full-fledged personal banking platform, offering Nigerians a simpler and more convenient way to manage their money.

Today, Moniepoint provides a long list of financial services, including money transfers, bill payments, and point-of-sale (POS) solutions for merchants. Its strong reputation for reliability and fast transactions has made it a top choice for many businesses across Nigeria.

The company has also been making big moves in the FinTech space. In October 2024, Moniepoint raised an impressive $110 million in funding, with major investors like Google backing the project.

South Africa’s Mobile Payment Platforms

SnapScan

SnapScan made its debut in South Africa in 2013, becoming one of the country’s first mobile payment solutions. It was developed through a collaboration between FireID and Standard Bank, with the simple goal of making payments easier for both businesses and customers.

The app works by letting users pay with their smartphones by scanning QR codes. This eliminates the need for cash or physical cards, making transactions faster and more convenient.

Today, SnapScan is widely used in retail stores, restaurants, and even open-air markets, allowing businesses of all sizes to offer cashless payment options.

Zapper

Launched not long after SnapScan, Zapper introduced a similar QR code-based payment system but took a different approach to stand out. Instead of just offering a simple way to pay, Zapper focused on making the experience smoother for users while adding extra benefits for businesses.

One of Zapper’s key strengths is its additional features. Besides processing payments, the platform includes loyalty rewards, special discount vouchers, and in-depth analytics for merchants.

These tools help businesses attract and retain customers while also gaining valuable insights into their sales trends.

Mobile Payments Showdown: Nigeria vs. South Africa

While both Nigeria and South Africa have embraced mobile payment solutions, their approaches and market dynamics differ significantly.

Here are a few ways they differ:

Also, read: MTN SA, Huawei Unveils 5G Evolution in South Africa

Financial Inclusion vs. Convenience

Nigeria’s mobile payment platforms focus on helping people without bank accounts gain access to financial services. Many Nigerians, especially in rural areas, struggle to use traditional banks, so fintech companies step in to bridge the gap.

On the other hand, South Africa’s mobile payment solutions aim to make transactions quicker and more convenient for people who already have bank accounts.

Adoption and Market Growth

Since the surge in mobile money transactions, more people are using platforms like Opay and Moniepoint to send money, pay bills, and conduct business transactions without needing a traditional bank account.

Meanwhile, South Africa has also witnessed significant growth in digital transactions. Platforms like SnapScan and Zapper encourage online shopping, for instance, which has increased by 40% since COVID-19, as people opted for cashless payments to avoid physical contact.

A McKinsey report predicts that by 2025, alternative payment methods will make up 70% of online transactions across Africa. While this may sound ambitious, the shift is already happening.

More people are moving away from traditional banking and embracing digital wallets, mobile money, and FinTech solutions for everyday transactions.

Regulatory Environment

Nigeria’s government has made efforts to create laws and regulations that support the growing fintech sector. The Central Bank of Nigeria (CBN) has introduced guidelines to monitor mobile money operations while encouraging innovation. However, frequent policy changes sometimes create uncertainty for startups and businesses.

South Africa, on the other hand, has a well-structured financial system with strong regulations that protect consumers. While the government ensures that FinTech companies follow strict rules, the regulations are designed to support creativity rather than restrict it.

Challenges and Opportunities in Mobile Payments

Despite impressive growth, both countries still face hurdles in their mobile payments industries. Here are some:

Challenges in Nigeria

• Unstable internet connections and frequent power outages make it difficult for some people to rely on digital payments.
• Many Nigerians, especially in rural areas, fear fraud and data theft, making them hesitant to use mobile payment services.

Challenges in South Africa

• South Africa already has a strong banking system and multiple digital payment options, making it harder for new platforms to stand out.
• With increasing cases of cybercrime, some South Africans find it difficult to share their financial information online.

You should read this: 5 Best Cryptocurrency Exchange Platforms to Watch Out in 2025

Frequently Asked Questions on Mobile Payments Nigeria vs South Africa

Conclusion

Nigeria and South Africa have taken different routes in the mobile payments industry. In Nigeria, the focus is on making financial services available to more people, especially those without bank accounts.

Meanwhile, South Africa is working on making cashless transactions easier and more convenient. Looking ahead, the future of mobile payments in Africa will probably combine both strategies: helping more people access financial services while making digital payments faster and smoother for everyone.

This blend could create a stronger and more connected FinTech system across the continent.

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References

• Mckinsey.com – The future of payments in Africa
• Makemoney.ng – OPay vs Moniepoint: Which is better?
• Techinsightsafrica.com – How Africa is Pioneering Mobile Payment Innovations: A Technological Revolution
• Afridigest.com – What South Africa and Nigeria reveal about the future of payments in Africa
• Slantco.com – SnapScan vs Zapper: What’s The Difference?

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