Inside Nigeria’s USD 2 B Gift Card Economy: From Liquidity Fix to Fintech Feature

The Nigerian gift card market is no longer a fringe niche. Once associated mainly with unused iTunes or Amazon vouchers from abroad, the sector has quietly become a multi-billion-dollar segment within Nigeria’s digital payments ecosystem. Estimates place the market at USD 2.34 B in 2025, with forecasts suggesting it could cross USD 3.5 B by 2029, growing at an annual rate of over 12 per cent.

The country’s accelerated shift toward digital payments drives this growth, spurred by cash shortages, restrictions on dollar accounts, and the rise of e-commerce. From online gaming to utility payments, Nigerians are finding diverse ways to use — and repurpose — gift cards. Yet, the sector faces challenges, from fraud to regulatory scrutiny, shaping how companies operate and users engage with these digital assets.

Why gift cards matter in Nigeria

Gift cards serve two broad purposes in the Nigerian market:

1. Consumption: Nigerians use cards like Apple, Google Play, Steam, or Amazon to access global services, often not directly payable with local bank cards. Gaming and app store purchases make up a large portion of these transactions.
   
2. Liquidity: For many, especially young people, gift cards double as a substitute for foreign exchange. A USD 50 Amazon card can be sold for naira or converted to crypto on peer-to-peer (P2P) platforms.
   

This dual role has created a secondary market where cards are traded as easily as digital tokens. Marketplaces such as SureGifts and JumiaPay issue official merchant vouchers for e-commerce and corporate gifting, while trading apps like Prestmit, Nosh, Patricia, and Cardtonic facilitate conversions into cash or digital wallets.

The scale — and the risks

Unlike debit or prepaid card data, which the Nigerian Inter-Bank Settlement System (NIBSS) tracks closely, gift card volumes are harder to quantify. Analysts rely on market value as a proxy. With Nigeria’s gift card market hovering above USD 2 B, rough calculations suggest 40–45 million cards may change hands annually, depending on average denomination.

But this scale has attracted fraud. Law enforcement agencies regularly cite iTunes, Steam, and Amazon gift cards as payment methods in romance scams, sextortion, and “Yahoo Yahoo” fraud cases. The National Cybercrime Centre has linked gift cards to multiple sextortion rings. At the same time, the Economic and Financial Crimes Commission (EFCC) continues to flag social-media “buyers” who drain codes without payment.

Scams typically take three forms:

• Impostor demands: Victims pressured to “pay taxes” or “clear packages” using gift cards.
  
• Social media “best rates”: Unregulated Instagram or Telegram buyers lure sellers, capture codes, and disappear.
  
• Romance/blackmail scams: Gift cards demanded as initial, low-friction payments before escalating to wire transfers or crypto.
  

This has forced legitimate platforms to double down on KYC (Know Your Customer) and compliance. Nigerian regulations on anti-money laundering (AML/CFT) require enhanced due diligence for high-risk transactions, and platforms are expected to align with Central Bank guidelines.

How platforms respond

Official issuers like JumiaPay and SureGifts emphasise compliance, requiring users to undergo account verification before purchasing or redeeming vouchers. Trading platforms, often operating at the intersection of fintech and informal markets, have adopted stricter KYC measures in recent years.

For instance, Cardtonic, Prestmit, and Nosh now require a combination of BVN, government-issued ID, and selfie verification before users can trade gift cards for naira or load wallets. These steps are not only regulatory safeguards but also essential in keeping fraudulent traders off the platforms.

Gift card players in Nigeria

Cardtonic is not alone in expanding beyond trading. Prestmit combines gift card trading with crypto services; Nosh positions itself as a one-stop shop for digital assets; Patricia attempted a similar route but faced operational turbulence. Meanwhile, SureGifts focuses squarely on corporate gifting and partnerships with merchants, and JumiaPay leverages its e-commerce ecosystem to drive voucher adoption.

The contrast highlights two parallel trends:

1. Consumer-driven liquidity platforms (Cardtonic, Prestmit, Nosh) are anchored in P2P trading but layer financial services.
   
2. Merchant-driven voucher systems (SureGifts, JumiaPay) targeting corporates and retail shoppers.
   

Cardtonic’s evolution within this landscape

Founded in Lagos in 2019, Cardtonic began as a single-service app to help Nigerians convert unused gift cards into cash. That initial service quickly found traction, with gift card trading still the platform’s most transacted category.

In 2024, the company expanded its scope with the Cardtonic 3.0 update, adding:

1. Gift Card Trading (Buy & Sell Cards – Nigeria & Ghana)

• Facilitates buying and selling gift cards in both Nigeria and Ghana—users can trade physical or e-code cards across a wide range of brands including Apple, Amazon, Google Play, Steam Wallet, Xbox, Razer Gold, Foot Locker, Sephora, Nordstrom, Target, Walmart, Visa, EMEX, and more.
  
• Offers competitive rates, instant processing, and secure transaction flows—particularly for “fast cards,” which can be validated and paid out within roughly 10 minutes.
  
• Users benefit from a real-time rate calculator to monitor current gift-card exchange values.

2. Virtual Dollar Card

• Enables access to virtual USD cards (Visa and Mastercard) for seamless online payments—available to users without traditional dollar accounts.
  
• Cards are branded as “one of the preferred virtual dollar cards in Nigeria”, with mainstream adoption for cross-border transactions.
  

3. Bill Payments

• Allows users to handle multiple bills in-app—such as electricity, internet, TV, airtime, data, and more—including betting account funding.
  

4. Just Gadgets (E-commerce Gadget Shopping)

• Offers tech gadgets—smartphones, laptops, accessories like AirPods and fairly used devices—often at discounted prices, with nationwide delivery and warranty (subject to T&C).
  

5. Wallet & Top-Up Functionality

• Provides virtual NAIRA wallets, including:
  
  • Funding via virtual bank accounts for Naira.
    
  • MoMo (mobile money) top-up for Cedis wallets in Ghana
    
• Live customer support available 24/7 via in-app chat, phone, or email
  

6. Developer API & Integration

• Supports third-party partnerships via Developer API, enabling services like gift card integration or virtual bank account creation.
  
• Cardtonic has integrated with Anchor to:
  
  • Provide virtual account APIs, payment APIs, and wallet top-ups, enabling smooth deposit collection and compliance.

Despite the diversification, gift card trading and the virtual dollar card remain Cardtonic’s highest-priority services.

User behaviour in Nigeria and Ghana

Cardtonic operates in both Nigeria and Ghana, with subtle differences in adoption:

• Nigeria: Higher overall volume of gift card trades, reflecting stronger inflows of foreign cards and broader P2P liquidity.
  
• Ghana: More consistent uptake of the virtual dollar card, showing demand for reliable cross-border payment tools.
  

Across both markets, bill payments are frequent but typically small in value, while gadget purchases are less common. 

Outlook: beyond trading

With gift card adoption rising in both Nigeria and Ghana, the next phase of growth appears tied to cross-border payments and everyday utility services. For Cardtonic, that means refining user experience, expanding supported categories, and tightening compliance. Market watchers note that the gift card sector, though often overlooked, reflects broader fintech shifts in West Africa: demand for flexibility, dollar access, and digital-first convenience.