The United States has developed one of the world’s most sophisticated card payment systems, but Nigeria is increasingly adopting a different approach to digital transactions through instant bank transfers and account-to-account payments.
The comparison was highlighted in an article by Yvonne-Faith Elaigwu published in Vanguard, which examined how the two countries have followed different paths in the evolution of electronic payments.
The Federal Reserve’s 2025 Payments Study, which examined 2024 transactions, found that Americans made 67.1 billion credit-card payments during the year. Overall, cards accounted for approximately 79 per cent of all non-cash transactions in the country, demonstrating how deeply the payment method is embedded in everyday economic activities.
The strength of the American card system lies in its extensive network connecting consumers, merchants, issuing banks, acquiring banks and payment networks. Over several decades, the system has expanded to include credit scoring, fraud protection, chargeback services, loyalty programmes and incentives such as airline miles and reward points.
These benefits have encouraged widespread card usage, making card payments a convenient option for millions of Americans.
However, the article argues that the success of the American model may also be slowing the adoption of alternative payment technologies. Consumers are familiar with their cards, merchants already have payment terminals, while banks and card networks benefit from the existing infrastructure.
In Nigeria, the development of digital payments has followed a different direction.
Rather than building its financial system primarily around credit cards, Nigeria has increasingly embraced direct bank-to-bank transfers, supported by the Nigeria Inter-Bank Settlement System (NIBSS) and its NIBSS Instant Payment platform.
The infrastructure allows customers to transfer money between bank accounts around the clock, with transactions typically completed within seconds. This has transformed everyday payments, with bank transfers becoming increasingly common for purchases, business transactions and personal financial activities.
The comparison highlights a major difference between the two economies: while Americans remain heavily reliant on cards for everyday purchases, Nigerians have increasingly adopted account-to-account transfers as a preferred payment method.
Meanwhile, the United States is also investing in alternative payment infrastructure. The Clearing House introduced its Real-Time Payments network in 2017, while the Federal Reserve launched its FedNow instant payment service in July 2023 to enable participating financial institutions to process payments around the clock.
Despite these developments, wider adoption remains a challenge, particularly as consumers and businesses are already accustomed to using established card networks.
The article concludes that technological progress does not always follow the same path across countries. While the United States perfected its card payment ecosystem, Nigeria’s different economic circumstances encouraged the development of alternative digital payment infrastructure.
It suggests that Nigeria’s experience demonstrates how developing economies can sometimes move beyond established financial technologies and adopt newer systems without following every stage of the development experienced by advanced economies.
