United Bank for Africa(UBA) Plc is overhauling its agency banking and merchant network with a new sales and incentive structure for its RedPay point-of-sale terminals, as the lender seeks to deepen financial inclusion and strengthen its grip on Nigeria’s fast-growing digital payments market.
The bank unveiled a multi-tier “aggregator” framework this week designed to streamline how it onboards and manages agents under its UBA MONI agency banking platform. The initiative aims to formalise relationships with third-party aggregators who recruit and supervise thousands of agents operating POS terminals across the country.
UBA said the structure, introduced at an engagement session with network partners in Lagos, will offer clearer incentives, improved technology tools and faster settlements to agents and merchants.
Nigeria’s agency banking model has become central to expanding access to financial services, particularly in rural and underserved communities where bank branches are sparse. POS terminals, often run by small merchants and roadside agents, now handle millions of daily transactions ranging from cash withdrawals to bill payments and transfers.
Emmanuel Lamptey, UBA’s executive director designate for digital banking, said partnerships with aggregators are key to meeting national financial inclusion targets.
“By bringing together our aggregators and partners, we are strengthening the ecosystem that connects UBA directly to communities and ensuring that reliable financial services are within everyone’s reach,” he said at the event.
Under the revamped framework, aggregators will be able to onboard and supervise agents within UBA’s network through a dedicated administrative portal that provides real-time visibility into transactions and agent performance. The model also promises structured commissions and incentives tied to productivity.
For agents and merchants using RedPay terminals, the bank is offering instant settlement, transaction processing support and real-time reporting dashboards. The service suite includes dispute resolution, terminal management, analytics, card withdrawals, bill payments and pay-with-transfer options.
UBA’s head of digital banking, Shamsideen Fashola, described the new structure as a scalable and transparent system intended to support the bank’s ambition of building what he called “Africa’s most impactful digital collections network.”
“Our aggregators are fundamental to realising this ambition,” Fashola said. “This framework is designed to empower partners with the technology and support needed to drive agent productivity and serve underserved communities effectively.”
The move comes as competition intensifies among Nigerian banks and fintech firms to dominate agency banking and merchant acquiring. Lenders are increasingly leaning on digital channels to grow low-cost deposits and transaction volumes amid tighter margins and regulatory changes that have reshaped the country’s banking landscape.
Agency banking has also taken on added importance following cash shortages and currency reforms in recent years, which accelerated the shift toward electronic payments and POS transactions.
Adetunji Iyiola, UBA’s head of agency banking, said the initiative is structured to create “superior value” for all stakeholders, from the bank to aggregators, merchants and end users.
“This rollout is about enabling better service delivery to customers while ensuring our partners have the tools and incentives to thrive,” he said.
UBA, which operates in 20 African countries as well as the UK, US, France and the UAE, serves more than 45 million customers globally and employs about 25,000 people. The bank has positioned digital banking and agency expansion as core pillars of its growth strategy, betting that deeper penetration into informal and semi-urban markets will support transaction income and broaden its retail footprint.
With the new aggregator structure, UBA is seeking not only to scale its RedPay terminal base but also to tighten oversight and improve performance across its agency network, a move that could help it capture a larger share of Nigeria’s booming digital payments ecosystem.
