Mastercard, Interswitch Expand Push for Tokenised Payments in Nigeria

Mastercard and Interswitch are expanding efforts to make tokenised digital payments more accessible in Nigeria, working with five banks as the country’s payments industry looks to improve transaction security and convenience.

Interswitch announced on October 26 that it was working with GTBank, Wema Bank, ProvidusBank, Zenith Bank and FirstBank to expand tokenised payments through Google Pay, Apple Pay and bank mobile applications.

Tokenisation replaces sensitive payment information, such as a card number, with a substitute digital identifier. The process can reduce exposure of actual card details during transactions and help strengthen payment security, although it does not eliminate all fraud risks.

The initiative brings together payment networks, banks and digital-wallet services, reflecting the growing importance of collaboration across the payments ecosystem.

What tokenisation means for customers

When a payment card is tokenised, the transaction uses a substitute identifier rather than repeatedly exposing the underlying card number. This can help limit the usefulness of compromised payment data.

For customers, digital-wallet payments can also reduce the need to enter card details manually at every checkout. For merchants, a broader range of supported payment methods can help simplify online checkout and potentially reduce friction for customers.

However, the benefits depend on the particular service being used, the card issuer, the customer’s device and the merchant’s payment infrastructure. Not every card or digital wallet supports every type of transaction.

A distinction between online payments and tap-to-pay

Interswitch has supported Google Pay on its payment gateway since 2023, allowing eligible customers to use the service for online payments. The newer announcement describes a wider effort to extend tokenised payment experiences through partner banks and digital-wallet services.

But online payment acceptance and in-store contactless payments are not the same thing.

Google’s current country-specific support information says contactless payments are not available in Nigeria, even though some Nigerian-issued Mastercard cards are listed among supported Google Wallet payment methods. The precise functionality customers can access therefore needs to be established before the partnership is described as a nationwide launch of phone-based tap-to-pay.

Customers should confirm with their issuing bank whether their specific card and device are eligible, and whether the service is available for online transactions, contactless payments or both.

Why the partnership matters to Nigeria’s payments market

The initiative illustrates how payment companies are trying to make transactions more secure and convenient by connecting banks, card networks, digital wallets and merchants.

For banks, tokenised payments can provide another way to support digital commerce while limiting the exposure of card credentials. For merchants, the commercial value will depend on whether the payment option reaches more customers, integrates smoothly with existing checkout systems and helps improve transaction completion.

The partnership also highlights a wider competitive question for Nigeria’s fintech sector: how quickly can payment providers introduce internationally recognised payment experiences while ensuring they work within local banking, regulatory and technology arrangements?

Adoption will depend on implementation

A partnership announcement is an important step, but it does not establish how many customers can use a service today or how widely merchants accept it.

The indicators to watch include which cards are eligible, the rollout schedule, the banks’ activation instructions, the merchants and channels supported, and any restrictions on transaction types.

Security and customer support will matter as well. Users need clear guidance on device security, card provisioning, dispute resolution and what to do if a phone is lost or compromised.

The collaboration could help expand tokenised payments in Nigeria. Its practical significance, however, will be determined by the services customers can actually access and how widely those services are adopted.

For now, the key development is the expanded effort by Interswitch and its bank partners to support tokenised payments, not a confirmed nationwide availability of every Google Pay or Apple Pay feature.