Banking and fintech applications have reached 88 per cent of smartphone users in Nigeria. The Nigeria Smartphone Study 2025, conducted by KPMG Nigeria and Orange Group, found that financial apps ranked second in popularity behind social media and communication platforms at 98 per cent.
The report surveyed 13,251 respondents across 12 major Nigerian cities. It examined smartphone ownership, application penetration and digital consumption patterns. Banking and fintech apps were 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 dominated individual fintech applications with 69 per cent smartphone penetration. PalmPay recorded 29 per cent. Moniepoint ranked alongside OPay and PalmPay as one of the three leading fintech apps. Traditional banking apps trailed significantly. Access Bank recorded 16 per cent, UBA and GTBank had 11 per cent each, FirstBank stood at 10 per cent, Zenith Bank at nine per cent and Stanbic IBTC at six per cent.
This mirrors the pattern seen in Kenya with M-Pesa and in India with Paytm. Mobile-first financial services grow faster than branch-based banking because they reach users where they already are. Nigeria’s fintech sector has followed that trajectory, driven by instant payment demand and the migration from cash transactions.
The surge in financial app usage coincided with rising smartphone ownership. Smartphone penetration increased by 11 percentage points to 75 per cent in 2025 from 64 per cent in 2023. Feature phone penetration declined to 28 per cent from 36 per cent over the same period.
The report said the widespread use of fintech platforms highlighted growing demand for convenient, accessible financial services. Mobile banking apps, digital wallets and fintech platforms have improved financial inclusion by providing alternatives to traditional banking infrastructure. The strong adoption signals continued progress toward financial inclusion, expanding access to financial tools among people who previously had limited interaction with banks.
Winners and Losers
Winners: OPay, PalmPay and Moniepoint, which have built dominant positions in mobile financial services. Smartphone users, who gain access to cheaper, faster financial transactions. The unbanked, who can access financial services without visiting a branch.
Losers: Traditional banks, whose apps lag far behind fintech competitors in penetration. Feature phone users, who are increasingly excluded from digital financial services. Cash-based businesses, which lose transaction volume as digital payments grow.
Bottom Line: The fintech app is now the primary banking interface for most Nigerian smartphone users. Traditional banks have the licences. Fintechs have the users.