Banking and fintech applications are installed on 88 per cent of smartphones used by Nigerians, reflecting the growing reliance on mobile devices for payments, transfers and other financial transactions.
This is according to the Nigeria Smartphone Study 2025, conducted by KPMG Nigeria and Orange Group and released in September 2026.
The study, which surveyed 13,251 respondents across 12 major Nigerian cities, examined smartphone ownership, application penetration and digital consumption patterns.
It found that banking and fintech applications were the second-most used category of apps, behind social media and communication platforms, which had 98 per cent penetration.
Productivity applications ranked next at 85 per cent, followed by streaming and music platforms at 82 per cent, and web browsers and utilities at 81 per cent.
The report attributed the high adoption of financial applications to the growing demand for convenient and accessible alternatives to traditional banking channels.
It said mobile banking applications, digital wallets and fintech platforms had expanded access to financial services and contributed to financial inclusion.
Among individual financial applications, OPay had the highest penetration at 69 per cent, followed by PalmPay at 29 per cent. Moniepoint was also listed among the three leading banking and fintech applications found on Nigerian smartphones.
Traditional banking applications recorded lower individual penetration rates.
Access Bank stood at 16 per cent, while UBA and GTBank recorded 11 per cent each. FirstBank had 10 per cent, Zenith Bank nine per cent and Stanbic IBTC six per cent.
The report linked the growing use of financial applications to increased demand for instant payment services and a gradual shift from cash-based transactions to digital payments.
It said Nigerians increasingly used smartphones for transfers, bill payments, airtime purchases and account management, reducing the need to visit physical bank branches.
The growth in financial app usage also coincided with an increase in smartphone ownership. Smartphone penetration rose to 75 per cent in 2025 from 64 per cent in 2023, while feature-phone penetration declined from 36 per cent to 28 per cent.
The report also cited Central Bank of Nigeria data showing that the value of digital payments increased from N587.5tn in 2020 to N1,261.65tn in 2024, representing a rise of about 115 per cent.
Digital payment transaction volumes also increased from 10.42 billion in 2020 to 17.67 billion in 2024, an increase of about 70 per cent.
The study identified smartphone and internet adoption, easier-to-use financial applications, digital wallets, remittance services, consumer trust, financial literacy, and regulatory and infrastructure investments as factors driving the growth of digital financial services.
However, it identified infrastructure limitations, device affordability, digital literacy gaps and cybersecurity concerns as challenges that could restrict wider adoption.
Recall that the CBN earlier reported that Nigeria is leading real-time payments and digital financial services in Africa.
The ecosystem has matured significantly, with fintech platforms providing a wide range of services including payments, lending, savings, and insurance.
Fintech adoption has expanded financial inclusion by reaching underserved and unbanked populations, especially in rural areas.
The report notes a marked decline in the use of physical banking halls as customers increasingly prefer digital channels such as mobile apps, USSD codes, and POS terminals.
Over the past few years, hundreds of bank branches have closed as a direct consequence of this shift. Digital payments have surged, with millions of Nigerians using fintech apps for everyday transactions, reducing the need for cash and in-person banking.
The CBN, KPMG Nigeria and Orange Group fintech reports clearly show that fintech apps and online platforms are rapidly replacing many transactions traditionally conducted in banking halls.
This transformation is driven by convenience, accessibility, and the push for greater financial inclusion.
