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backImagine a regular evening after work. A colleague suggests grabbing food before heading home. Your friend pays first, so you quickly send ₦1,500 to settle your part.
Later, you remember the food vendor you owe from yesterday, so you transfer ₦2,000. Then your mum texts: “Please send ₦5,000 for toiletries.”
Three quick transfers. Nothing serious.
But here’s the quiet part people rarely notice. Each transfer comes with a small charge. Maybe ₦10, maybe ₦25, sometimes more.
It doesn’t look like much at first. Do that regularly, and those small charges can easily add up to ₦1,000 or more in a month.
The good news is, some mobile banking apps offer options to reduce or remove these charges. Moniepoint, for example, offers free transfers for users aged 16 - 24 until they turn 25. On top of that, new users also get ₦10 cashback on the first three interbank transfers every day for the first 90 days after signing up, which helps cancel out transfer fees.
So the real question is simple: which mobile banking services actually offer free transfers in Nigeria, and how do they work?
Why Bank Transfers Usually Come With Charges
If you’ve ever wondered why sending money costs anything at all, the short answer is this: a lot happens behind the scenes when you tap “send.”
When you transfer money from one bank to another, the transaction doesn’t move directly from your account to the other person’s account. It passes through a national payment network that connects banks and processes the transfer in seconds.
In Nigeria, that system is largely powered by the Nigeria Inter-Bank Settlement System (NIBSS), the central switching platform that allows banks and financial institutions to talk to each other and complete transfers securely.
Banks pay to use this infrastructure and those costs usually cover things like:
Infrastructure: Running secure servers and payment systems that keep transactions fast and reliable.
Interbank switching: A switching platform processes and confirms a transfer when you send money to someone using a different bank.
Payment networks: These networks ensure transactions are recorded correctly and settled between banks.
According to the Central Bank of Nigeria, Nigeria’s instant transfer system has seen a significant 120% increase from N5 billion processed transactions in 2022 to N11 billion in 2024. These millions of transactions require efficient infrastructure and monitoring to ensure that payments are secure and reliable.
Because banks incur these costs, they often pass a small part to customers as transfer fees.
How Some Mobile Banking Apps Reduce These Fees
Not every banking service handles transfer charges the same way. Newer digital banking models have introduced different ways to reduce or remove them.
Here are the three most common approaches.
1. Completely Free Transfers
Some apps cover the transfer cost themselves, allowing users to send money without paying a fee.
2. Limited Free Transfers
In this model, you get a certain number of free transfers daily or monthly. After that limit, normal charges apply.
3. Cashback Transfers
You may still see a transfer fee during the transaction, but the app returns the money as cashback. The result is that you effectively pay nothing for the transfer.
Understanding these differences helps you choose the right mobile banking option, especially if you often send money. The key is knowing whether transfers are truly free, limited, or refunded through cashback.
A Smarter Way to Send Money Without Paying Transfer Fees
Once you understand how transfer charges work, the next step is simple: use a banking app that removes or offsets those fees. That’s exactly what Moniepoint is designed to do.
Here’s what that looks like in everyday use.
1. Free Transfers Until Age 25
If you’re between 16 and 24, Moniepoint gives you free transfers until you turn 25. Both new and existing users in that age range qualify.
Why does this matter? Because this age group tends to send money often. Small amounts, many times a week.
Case example
Take Daniel, 21 years. On a typical day, he might send:
₦1,500 to a friend after lunch
₦2,000 to a vendor
₦3,000 home
With regular bank charges, those transfers could quietly cost him ₦30 - ₦75. Over a month, that can easily reach ₦1,000 or more.
With free transfers, the money simply stays in his account.
2. Daily Cashback on Transfers
Even when you’re sending money to other banks, Moniepoint still helps reduce the cost.
New users get ₦10 cashback on the first three interbank transfers every day for the first 90 days after signing up. In many cases, the cashback helps cancel out the transfer charge.
Case example
Amaka regularly sends money to different banks when paying for groceries and other things.
That can easily be three transfers before noon. With the daily cashback, those early transfers are essentially covered, so she’s not losing part of her money to fees.
3. Extra Savings on Everyday Payments
Moniepoint also adds cashback to things you already pay for regularly:
10% cashback on the first airtime purchase each week (capped at ₦10)
10% cashback on the first bill payment each week (capped at ₦50)
1.5% cashback on data purchases and 10% cash-back when you pay with your Moniepoint card at select restaurants and supermarkets till you're 25
Case example
Take Tobi, who works remotely and buys data almost every week. Normally, that’s just money leaving his account. With cashback, he’s getting a small amount back on something he already pays for anyway.
How to Start Using a Mobile Banking App for Free Transfers
Starting with free transfers is easier than you think. Simply follow these simple steps:
Download the app: Search for Moniepoint Personal Banking app on your Google or Apple play store.
Sign up with your phone number: Enter your phone number. An OTP will be sent to that number to confirm it’s really you.
Enter your Personal Details and BVN: Next, you’ll provide basic information such as your name, date of birth, and address, then enter your BVN. This helps the bank verify your identity and link your account. Follow the prompts, take a quick selfie or upload a valid ID.Once you submit everything, your account is created.
Start transferring: That’s it. You can now send money to friends, family, or vendors and enjoy cashbacks and free transfers.
Finally
Small charges don’t feel dangerous until they repeat every day. Taking advantage of free transfers and cashback isn’t just smart, it’s giving yourself control over your money. So, what are you waiting for? Open a Moniepoint account and enjoy free and reduced transfer fees.
