Banking and financial technology applications have reached 88 per cent of smartphone users in Nigeria, highlighting the growing shift towards mobile payments and digital financial services.

The Nigeria Smartphone Study 2025, conducted by KPMG Nigeria and Orange Group, found that banking and fintech applications were the second-most widely used app category among respondents, behind social media and communication platforms, which recorded 98 per cent penetration.

Released in September 2026, the study surveyed 13,251 respondents across 12 major Nigerian cities, examining smartphone ownership, app penetration and changing digital consumption habits.

“This reflects Nigeria’s rapid shift toward digital financial services as consumers increasingly rely on mobile applications for payments, transfers, and financial management,” the report stated.

Banking and fintech applications ranked ahead of productivity tools at 85 per cent, streaming and music platforms at 82 per cent, and web browsers and utilities at 81 per cent.

OPay Leads Fintech Adoption

Among individual financial applications, OPay recorded the highest penetration, appearing on 69 per cent of smartphones surveyed.

PalmPay followed with 29 per cent, while Moniepoint was identified alongside OPay and PalmPay as one of the three leading banking and fintech applications used by Nigerian smartphone owners.

The report said the figures underscored the growing influence of mobile-first fintech companies in a financial services market traditionally dominated by commercial banks.

Individual banking applications recorded considerably lower penetration rates. Access Bank stood at 16 per cent, while UBA and GTBank each recorded 11 per cent. FirstBank had 10 per cent, Zenith Bank nine per cent and Stanbic IBTC six per cent.

According to the study, consumers are increasingly adopting fintech platforms because of demand for convenient and accessible alternatives to traditional banking infrastructure.

“The widespread use of fintech platforms highlights the growing demand for convenient, accessible financial services across Nigeria,” the report said.

It added that mobile banking apps, digital wallets and other fintech platforms had contributed to financial inclusion by expanding access to services beyond conventional bank branches.

Smartphone Penetration Rises to 75%

The growth in financial app usage has coincided with a significant increase in smartphone ownership.

Smartphone penetration in Nigeria rose by 11 percentage points to 75 per cent in 2025, from 64 per cent in 2023. Feature phone penetration, meanwhile, declined from 36 per cent to 28 per cent over the same period.

The report described the trend as evidence that Nigeria was rapidly becoming a “mobile-first economy,” with consumers increasingly moving towards internet-enabled devices and app-based services.

Android remained the dominant operating system, accounting for 88 per cent of smartphones surveyed, up from 86 per cent in 2023. Apple’s iOS accounted for 13 per cent in 2025.

Affordable smartphone brands also maintained a strong presence in the Nigerian market. Tecno accounted for 25 per cent of devices, followed by Infinix at 24 per cent and Itel at 10 per cent.

The report attributed their strong market positions largely to competitively priced devices designed for emerging markets, indicating that affordability and functionality remain major factors influencing smartphone purchases.

Digital Payments Hit N1,261tn

Nigeria’s transition towards mobile financial services has been accompanied by significant growth in digital payments.

Citing Central Bank of Nigeria data, the study showed that the value of digital payments more than doubled from N587.5 trillion in 2020 to N1,261.65 trillion in 2024, representing an increase of about 115 per cent.

Transaction volumes also climbed by roughly 70 per cent, rising from 10.42 billion transactions in 2020 to 17.67 billion in 2024.

The report identified expanding smartphone ownership and internet access, user-friendly banking and fintech applications, innovations in digital wallets and remittances, improving consumer trust and digital financial literacy, as well as regulatory and infrastructure investment as key drivers of the expansion.

Nigerians are increasingly using smartphones for transfers, bill payments, airtime purchases and account management, reducing the need to visit physical bank branches.

Physical Bank Footprint Shrinks

The shift towards digital banking has coincided with a contraction in Nigeria’s physical banking network.

Central Bank of Nigeria data showed that Deposit Money Banks closed a net 476 branches and cash centres between 2022 and 2025, representing an 8.8 per cent reduction in three years.

The number of bank branches and cash centres nationwide declined from 5,410 in 2022 to 4,934 in 2025, despite an increase in the number of banks operating during the period.

The figures point to an accelerating migration from traditional brick-and-mortar banking towards electronic and mobile platforms.

Infrastructure Gaps Remain

Despite strong growth in smartphone and financial app adoption, the report identified several barriers that could limit broader participation in Nigeria’s digital economy.

More than one-third of mobile subscribers remained on 2G networks as of May 2026, while infrastructure constraints, device and data affordability, limited digital literacy and cybersecurity concerns continued to affect the depth and inclusiveness of digital access.

The study covered Lagos, Ibadan, Ilorin, Onitsha, Aba, Port Harcourt, Owerri, Benin City, Abuja, Jos, Kaduna and Kano.

Of the 13,251 respondents, 53 per cent were male and 47 per cent female, while 85 per cent were between the ages of 18 and 45.

Researchers used structured surveys and direct device observation to examine the applications installed on respondents’ smartphones and understand their usage patterns.

The findings indicate that smartphones are becoming increasingly central to Nigeria’s financial ecosystem, with fintech platforms gaining significant reach as consumers shift more everyday transactions from cash and physical banking channels to digital alternatives.