“Free transfers!”

“No bank charges!”

“Zero fees!”

Sound familiar?

That’s how many fintechs in Nigeria try to win users. And yes, it works… at first.

But here’s the question nobody’s asking: Who is actually paying for these free transfers?

Let me be clear, they are not free. Just as a gift might cost the recipient nothing to accept, the cost is on the sender's part. Whenever you move money from one bank to another, someone picks up the tab. And most times, it’s the fintech company bleeding behind the scenes.

The Nigerian Fintech Freemium Trap

Startups are in a mad dash for users. So, they make everything “free” to get people on the app:

• Free transfers
• Free cards
• Free top-ups
• Free everything

But here’s the reality:

Every ₦100 you transfer for free can cost a fintech ₦15–₦25, depending on the backend route. Multiply that by 10,000 users and you’ll see the math isn’t mathing.