BTA2023 SmartCash Payment Service Bank (PSB), the financial services arm of Airtel Nigeria, has crossed nearly three million active users, marking a significant milestone in Nigeria’s fast-expanding mobile money market.
The company defines “active users” as customers who have transacted within the last 30 days — a stricter benchmark than the six-month definition used by many traditional banks. According to SmartCash, engagement over 60- and 90-day windows is even higher, signaling growing adoption across Nigeria.
Zero-Charge Banking Strategy Targets Fintech Rivals
SmartCash’s latest growth push comes as it transitions from promotional incentives into a structural “Zero-Charges” banking model, positioning itself directly against dominant fintech players like OPay and Moniepoint.
Under this model, SmartCash users pay:
- ₦0 for interbank transfers
- ₦0 for bill payments
- ₦0 for SMS transaction alerts
This contrasts with traditional banks that typically charge between ₦10 and ₦50 per transfer, excluding VAT. Only government-mandated stamp duties on transfers above ₦10,000 still apply.
CEO Ayotunde Kuponiyi described transaction fees as a “psychological tax” discouraging financial inclusion, especially among low-income and rural Nigerians.
“Transaction costs act as barriers to people accessing financial services. We are eliminating this barrier — come and transact,” Kuponiyi said.
15% Interest Rate: A Bold Play for Deposits
Beyond zero fees, SmartCash is offering a market-leading 15% annual interest rate on savings balances.
Key features include:
- Interest calculated daily
- Interest credited daily
- Automatic compounding
- No restrictions on withdrawals affecting interest eligibility
However, Kuponiyi noted that the rate is tied to Nigeria’s monetary environment and may adjust in response to changes in the Monetary Policy Rate (MPR).
Revenue Gap Remains
Despite its growing user base, SmartCash remains small compared to leading fintechs.
- SmartCash revenue (Dec 2025): $6 million
- PalmPay revenue (2023): $63.9 million
Since the Central Bank of Nigeria introduced Payment Service Banks in 2018, telecom-led fintechs have struggled to translate subscriber scale into financial dominance. PSBs face structural limitations — including restrictions on lending and stricter capital requirements.
Nigeria’s Mobile Money Boom
Mobile money remains Nigeria’s fastest-growing financial segment. According to the Nigeria Inter-Bank Settlement System (NIBSS), transactions hit ₦20.71 trillion ($13.49 billion) in Q1 2025.
Yet regulatory constraints continue to shape the competitive landscape.
Airtel’s Infrastructure Advantage
SmartCash leverages Airtel’s nationwide telecom network, covering all 774 local government areas and supported by over 500,000 agents for cash-in and cash-out services.
Kuponiyi argues this gives the company a reliability edge:
“Most banking links ride on telecom services. Who better to provide it?”
The long-term strategy, according to the company, is to use deposits and transaction activity to power a broader ecosystem that could eventually include credit, insurance, and remittance services.
