Touch and Pay (TAP) Technologies Limited, the fintech company behind Cowry card for Lagos’ train and Bus Rapid Transit (BRT) systems, has driven a 291% surge in closed loop prepaid cards usage between 2021 and 2024, according to a report by global market research firm Euromonitor International.
Closed-loop prepaid cards are preloaded with funds but can only be used within a specific network or with designated merchants.
This growth highlights the increasing adoption of cashless payments, particularly in Nigeria’s largely informal transportation sector. Cashless payments reduce the time and hassle associated with cash transactions and the risk of theft and robbery, which are common issues in the sector.
The number of closed loop prepaid card transactions in Nigeria jumped from 2.2 million in 2021 to 8.6 million in 2024, with transaction value rising from ₦6.16 billion to ₦18.03 billion over the same period. TAP is the primary payment provider for Lagos State’s mass transit system, its largest market, though specific data for Lagos was not disclosed.
“The rise of prepaid cards is linked to road infrastructure developments and the launch of the Lagos Blue Line train, which has driven demand for Cowry cards since their introduction in 2021,” the Euromonitor report noted.
TAP launched its Cowry card in 2020 and now has over five million users, up from 3.8 million in 2023. CEO Olamide Afolabi told that 552,000 cards were issued in 2024, surpassing the 400,000 issued in 2023. The company claims to have processed over ₦20 billion in transactions last year.
“To use the BRT system, commuters must have a Cowry card. We are the sole provider of the card payment system for transportation in Lagos and several other states,” Afolabi said.
Cowry cards, sold for ₦1,000, are contactless payment cards powered by near-field communication (NFC) technology, enabling users to pay for bus and train rides. Funds can be added through the Cowry Wallet app, which also offers a pay-with-phone feature, though most commuters prefer to top up via bank transfers or agents.
Lagos resident and consumer data analyst Precious Kuye, who bought her Cowry card in 2021 for ₦400, has used it daily for commuting. “I can easily add money through the app or at the terminal,” she said.
Deborah Innocent, a graphic artist, finds the Cowry card more convenient than relying on unpredictable commercial buses.
“It’s user-friendly and much easier to use,” she said.
In August 2024, SmartCash Payment Service Bank, a subsidiary of Airtel Nigeria, partnered with TAP to introduce new top-up features for Cowry cards.
“The growth in card usage demonstrates how technology can subtly influence consumer behavior, even in unstructured markets,” said Uchenna Uzo, professor of marketing at Lagos Business School. “ It underscores the critical role of user adoption in Nigeria’s payment ecosystem—a market that deserves close attention. A thriving retail sector depends on a seamless digital payment system.”
While challenges remain, there is growing awareness of the benefits of a cashless transportation system in Nigeria. As adoption spreads, the sector will further integrate digital payments, making seamless, cash-free travel a reality for millions.
