Cardless Payments Go Nationwide: UBA, Redtech, and MoMo PSB Unlock a New Era of Financial Inclusion in Nigeria

In a landmark move for Nigeria’s digital payments landscape, United Bank for Africa (UBA), Redtech, and MoMo Payment Service Bank (MoMo PSB) have announced a strategic payment interoperability partnership. This collaboration is set to dramatically expand cardless payment access for millions of consumers and merchants across the country, bridging the long-standing gap between traditional banking infrastructure and the rapidly growing mobile money ecosystem.

What the Partnership Means for Consumers and Merchants

Under this new initiative, MoMo PSB customers can now make direct payments from their mobile wallets at UBA merchant locations using the “Pay with MoMo” feature on RedPay POS terminals. This eliminates the need for physical debit or credit cards, a significant advantage in a market where card penetration remains limited, especially in rural and semi-urban areas.

Beyond point-of-sale transactions, the arrangement also allows MoMo users to perform cash withdrawals and deposits at UBA branches. For e-commerce merchants, the integration means they can seamlessly receive payments from MoMo users through Redtech’s payment gateway, opening up a new revenue stream from the millions of Nigerians who rely on mobile money for their daily transactions.

The Technology Behind the Deal: A Tripartite Synergy

This partnership is not merely a commercial agreement; it is a technological convergence. It combines three distinct but complementary strengths:

• Redtech’s Payment Technology: Redtech provides the RedPay POS terminals and the underlying payment gateway infrastructure. This technology is designed to be interoperable, meaning it can process transactions from various wallet providers, not just MoMo PSB. This flexibility is crucial for future-proofing the system.
• UBA’s Merchant-Acquiring Network: UBA brings its extensive network of over 55,000 merchant touchpoints nationwide. This includes everything from large retail chains to small kiosks, giving MoMo users unprecedented access to spend their digital money in the physical world.
• MoMo PSB’s Mobile Money Ecosystem: MoMo PSB, a subsidiary of MTN Nigeria, provides the vast user base of mobile wallet holders. With over 50 million active mobile money accounts in Nigeria, MoMo PSB is a dominant force in the digital financial services space.

This synergy is designed to create a seamless loop: a MoMo user can deposit cash at a UBA branch, use their wallet to pay at a UBA-affiliated merchant via RedPay, and even withdraw cash if needed. This eliminates the friction that has historically kept banked and unbanked populations separate.

Expert Commentary: Solving the Cash and Card Conundrum

Industry leaders have highlighted the practical implications of this deal. Kayode Olubiyi, UBA’s Head of Digital Banking, stated that the collaboration directly addresses the challenges associated with cash transactions and limited card access. “In Nigeria, many people still operate in a cash-heavy economy, and card issuance has not kept pace with population growth or digital adoption. This partnership expands payment options for both merchants and customers, reducing the reliance on physical cash and the associated security risks,” Olubiyi explained.

Emmanuel Ojo, Chief Executive Officer of Redtech, emphasized the operational benefits for merchants. “The integration of RedPay technology with MoMo wallets through UBA’s network provides greater flexibility for users and reduces lost sales for merchants. Previously, a merchant might lose a sale if a customer only had a mobile wallet and no card. Now, that barrier is removed,” Ojo noted. This is particularly impactful for small and medium-sized enterprises (SMEs) that often operate on thin margins and cannot afford to turn away customers.

Omolara Michael-Nwadu, Acting CEO of MoMo PSB, framed the partnership as a significant step toward achieving true interoperability in Nigeria’s payments ecosystem. “Integrating MoMo wallets into UBA’s network eliminates existing barriers between banking systems and mobile money platforms. This unlocks access to more than 55,000 merchant touchpoints nationwide, which is a game-changer for financial inclusion,” she said.

Deeper Implications: Driving Financial Inclusion and Transaction Volumes

The collaboration is expected to drive several key outcomes:

1. Deepening Financial Inclusion

Nigeria has one of the largest unbanked populations in the world, with over 40 million adults lacking access to formal financial services. Mobile money has been a powerful tool for reaching these individuals, but its utility has been limited by the inability to spend wallet funds at traditional brick-and-mortar stores. This partnership effectively turns every UBA merchant location into a MoMo acceptance point, making mobile money more useful and encouraging adoption.

2. Boosting Transaction Volumes

For UBA and Redtech, this deal opens up a new customer base. MoMo users who previously could only transact within the MTN ecosystem can now spend at UBA-affiliated merchants. This is expected to significantly increase transaction volumes on the RedPay network, generating more revenue for all three partners.

3. Reducing the Cost of Cash

The Central Bank of Nigeria (CBN) has been actively promoting a cashless economy to reduce the cost of printing, transporting, and securing physical currency. By providing a viable alternative to cash for everyday transactions, this partnership supports the CBN’s policy objectives.

Practical Example: How It Works in Real Life

Imagine a small business owner in Lagos, “Chioma,” who sells handmade jewelry. She has a UBA merchant account and uses a RedPay POS terminal. A customer, “Emeka,” wants to buy a necklace worth ₦5,000 but only has money in his MoMo wallet. Previously, Emeka would have to withdraw cash from an agent (paying a fee) or find an ATM (which may not have cash). Now, Emeka simply selects “Pay with MoMo” on the RedPay terminal, enters his phone number, and approves the payment on his phone. Chioma receives the funds instantly in her UBA account, and Emeka gets his necklace. The transaction is seamless, secure, and cardless.

Looking Ahead: A Blueprint for the Future

This partnership sets a precedent for how banks, fintechs, and telecom operators can collaborate to build a more inclusive financial system. As Nigeria continues its digital transformation, such interoperability deals will be critical. The success of this initiative could encourage other banks and mobile money operators to form similar alliances, ultimately creating a unified payments ecosystem where no one is left behind.

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