Nigeria Launches National Payment Stack (NPS): PalmPay and Wema Bank Complete First Millisecond Transaction

Nigeria's National Payment Stack (NPS) officially goes live, marking a new era of instant digital payments across banks and fintechs.

Nigeria has achieved a major milestone in its digital economy journey with the official launch of the National Payment Stack (NPS) — a unified infrastructure designed to power faster, cheaper, and more interoperable digital payments across banks and fintech platforms. The first live transaction on the new system was successfully completed between PalmPay and Wema Bank on November 7, 2025, settling instantly in just milliseconds.

The National Payment Stack is built and powered by the Nigeria Inter-Bank Settlement System (NIBSS), the central body responsible for interbank payments in Nigeria. It represents a groundbreaking upgrade to the country’s financial ecosystem, offering new possibilities for innovation and digital inclusion.

What is the National Payment Stack (NPS)?

The NPS is a next-generation digital payments infrastructure that unifies Nigeria’s financial systems into a single interoperable framework. It’s designed to replace older settlement channels like the NIBSS Instant Payment (NIP) system with a faster, more scalable, and intelligent platform.

It supports advanced APIs, real-time settlement, richer payment data (including ISO 20022 messaging), and stronger security protocols. With NPS, every financial institution — from traditional banks to fintech apps and mobile money operators — can connect to the same backbone for sending and receiving payments instantly.

Related Post: minipay wallet guide how to register.

Historic First Transaction: PalmPay & Wema Bank

The successful live transaction between PalmPay and Wema Bank was a major proof of concept. The transfer was processed and settled instantly — in milliseconds — marking the first real-world demonstration of NPS’s high-speed capability.

PalmPay, one of Nigeria’s fastest-growing fintech platforms, and Wema Bank, a pioneer in digital banking through ALAT, showcased the interoperability goal of the NPS: bridging fintech and traditional banking seamlessly. This transaction not only confirmed the system’s reliability but also opened the door for full-scale rollout to all financial institutions.

Key Features and Benefits of NPS

• 1. Instant Settlement: Payments happen in real-time, reducing delays and improving liquidity for businesses and consumers.
• 2. Interoperability: All licensed banks, fintechs, and mobile money operators can connect to one unified system.
• 3. Lower Transaction Costs: Shared infrastructure means fewer middlemen and lower transfer fees for users.
• 4. Stronger Security: Built with enhanced encryption and fraud-monitoring systems.
• 5. Developer-Friendly APIs: Open architecture encourages fintech innovation and integration of smart financial services.

For Nigeria’s economy, the NPS will not only make payments faster but also more reliable. Businesses can expect quicker settlement of invoices, individuals can enjoy instant peer-to-peer transfers, and fintech startups will find it easier to build payment-based applications.

NIBSS Vision and Regulatory Support

The launch of NPS aligns with the Central Bank of Nigeria’s (CBN) vision to deepen financial inclusion and enhance the national payment system’s efficiency. NIBSS, under CBN’s guidance, has been developing the NPS for several years as part of its digital transformation roadmap.

In an official update, NIBSS confirmed that all financial service providers are being onboarded gradually. The platform will serve as the new backbone for all digital transactions — from bank transfers to fintech wallet payments, merchant services, and beyond.

Challenges Ahead and Future Outlook

While the launch is a major success, experts believe widespread adoption will require further collaboration between financial institutions, regulators, and service providers. Integration costs, compliance alignment, and education of users about the new system will be key factors in ensuring smooth adoption.

Still, the outlook is bright. As more fintechs and banks integrate with NPS, Nigerians can expect faster and cheaper cross-platform transactions. Businesses will also benefit from better payment data analytics, while developers will gain access to more powerful APIs for innovation.

Implications for Africa’s Fintech Ecosystem

Nigeria’s move sets a precedent for other African nations. With over 200 million people and one of the continent’s most active fintech scenes, the National Payment Stack positions Nigeria as a leader in financial infrastructure modernization.

Analysts believe the NPS could eventually integrate with regional payment systems, boosting intra-African trade under the African Continental Free Trade Area (AfCFTA). By aligning with global payment standards such as ISO 20022, Nigeria is also future-proofing its payment ecosystem for international interoperability.

Final Thoughts

The launch of the National Payment Stack marks a defining moment in Nigeria’s financial history. The successful PalmPay–Wema Bank transaction demonstrates that the country is ready for a new era of fast, reliable, and borderless payments.

If fully adopted, the NPS could transform Nigeria into a digital payments powerhouse — one where money moves as quickly as ideas, and where financial innovation drives inclusive growth across every sector of the economy.

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Source: NIBSS official update, Nairametrics, TheCable, BusinessDay, and ThisDay reports (Nov 2025).

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