Paga, an indigenous payment company, is committed to bringing more Nigerians into the banking system in compliance with ongoing Central Bank of Nigeria’s (CBN’s) financial inclusion project. It’s Regional Manager, Lagos and West, Mrs. Patience Gold, speaks on how the firm is helping the unbanked into the financial system and creating wealth for its Agent Network providers. COLLINS NWEZE reports.
The speed, convenience and security that come with electronic payment makes it the toast of customers. For Paga, a payment company, electronic payment is where the world is heading and Nigerians cannot afford to be left behind given the benefits that come with it.
That was the position of Paga Regional Manager, Lagos and West Region, Mrs. Patience Gold, who spoke on steps being taken by the firm to get more people to embrace digital payment.
Speaking during media interaction in Lagos, she said that uneducated and people from the lower cadre of the society who think that banking is only for the rich and educated should have a rethink because with 8,300 agents spread across 35 locations in the country, Paga has brought banking to many households.
She said: “We want to change lives of people and make people make more money. Those who think the financial sector is only for the educated and rich, can also be included in the financial sector through Paga.
“Paga is about payment. That’s simple. If you want to make payment or you want to get paid; whether you are an individual or a business, Paga offers solution for all situations. We offer you the best service. Paga is a payment platform. It is more than mobile money. We play on the mobile money field, but we do more than that.”
Mrs. Gold said that after reaching three million subscribers’ base, Paga has proven that it is heading for the skies in its effort to get more people banked. “I think it is a major milestone for us. Having started from the scratch and in three years, we have three million customers. As for the agent network, we have played a major role in making this country, especially, with all the challenges of connectivity and banks not being everywhere, or a particular percentage of Nigeria not being financially included, I think the network has helped to push availability for financial inclusion,” she said.
Speaking further, she said that irrespective of where a customer is, the average Nigerian can now have a means of accessing finance. “Every user in one way or the other is a customer. The three million milestones comprise of everyone that has used Paga network whether you are getting paid or you used that platform to do a transaction,” she said.
Why electronic payment is key
Speaking on the benefits that come with electronic payment, she said the advantage of convenience and speed makes everyone want to make payments online. “So, like I have said, everybody wants convenience. I want to be able to access my fund anytime, anyway without the challenge of banks’ closing hours, and I don’t really have to sit down and use my laptop because from my mobile phone, I can do transactions using Paga network.
“Something around convenience will make everyone that is tech-savvy to want to use Paga. We also have people that are out there, the agents who can transfer money to all cadres of people including the uneducated, who have access to telephone. They can also transfer money to anyone using a mobile phone.
“And you can agree with me that we have more people using the mobile phone than those not using it. All you need to do is go to an agent with the code and cash-out the money. That is making life easier for people especially in area of payment,” she said.
Agent Network Sales
Mrs. Gold, who manages the Agent Network Sales, explained that it is a unit in Paga that builds and grows the agent network for the company. The Agent Network Sales is one of Paga’s major channels. The firm has two channels, which include the agent or online platform.
She stated that both the agent network and online are convenient and secure for customers to carry out their transactions. “It is more or less the same, but the agent gets a commission. If you are paying for DSTV online there is no fee. But until last week, there was still no fee if you are using the agent. There is a recent introduction of a minimal fee, something that will not pinch the pocket at all. It is on bill payment, generally,” she said.
Mrs. Gold said subscribers can also use the Paga network to make deposit into someone’s bank account. “Off course, you can make deposits into any bank account in Nigeria. You can do that by yourself or via an agent. If you have cash, and you want to deposit money in any bank in Nigeria, Paga can do that for you.
“The unique selling point for Paga is our disposition to carry our agents along. Paga will normally look out for the interest of the customer. If you are a direct customer, with Paga, we are looking at how you would want us to serve you better. We are looking at how valuable your agency can be for you. With Paga community, it is more like a family,” she said.
Network challenges and Telcos
Speaking on connectivity issues, Mrs. Gold said: “Like you know, we key into third parties. What we normally have is that every problem that is connected to telcos today is also faced by payment companies like poor network connectivity.”
On competition, she said the company sees competitors more like partners because no one succeeds alone. “When it comes to other players in the industry, we are simply partners. I do not see other people as competitors, because there is need for awareness. If we have many players, more people will talk about different ways of making payment, and overtime, the popularity will rise and that will benefit every player in the industry. And overtime, what will sustain each player in the market will be the level of dependability,” she said.
Regulatory challenges
On regulation, she said the payment industry is under the supervision of the Central Bank of Nigeria (CBN). She said the Know Your Customer (KYC) policy is helping operators to understand who every customer is and how to serve him or her better. “They want KYC for agents. Most of the KYC that apply to bank customers also apply to us. Everybody has the limit for ATM transactions, also how much every customer can withdraw from a bank and all that. In terms of agent network, there are many requests that are going on. We do not just take anybody out there, we work based on regulations and guidelines.
Not that the process is tedious, but it is reasonable. The need for proper identification makes their work imperative. You have to provide documents and documentations for you to be in our system,” she said.
Mrs. Gold said the introduction of Bank Verification Number (BVN) will help operators work better.
“The BVN can help us to authenticate individuals. The National ID Card scheme has not helped much, if there is social code that will serve people better. It will reduce some of the must provide kind of documentation that sometimes takes longer time for an agent to start. Like I said, at this level, it is reasonable that they go this way.
“If you want to carry out transaction in excess of N10,000, there will be need to have KYC because the transaction will not go without it. The Paga system allows you to upgrade, but you have to provide information you normally send to banks when opening a new account. You can send it to our customer services through email otherwise, you will be operating at the lowest KYC limit. With documentation, one can do as much as N1 million transaction per day.”
Profitability
On profitability of the business she said: “I think we are getting there. We are getting to that point where we can say the business is profitable. We are a full-fledged Nigerian company that started from the scratch. You know in entrepreneurial space, it could take a company about four years to break even. I am not in finance unit, but I can tell you from my seat, we are getting there.”
Speaking on financial inclusion, she said the number of Nigerians that are banked is still small. “We have records to show that only bout 25 per cent of Nigerians are banked, and out of that 25 per cent, I doubt if 10 per cent of that number are fully banked. Nigerians still carry cash. People are still keeping money with them. What I say is that the industry is an extension of the society. There are many bank accounts that are just there dormant. Traders still carry large cash.
“I can’t remember when last I went to a bank. I don’t have any need to. In fact, the better analogy is that I can’t remember when last I scratched a recharge card. It is not convenient. If I want to transfer money, I will just use my Paga network and do it seamlessly. It is as simple as that,” she explained.
On transaction speed, she said it takes seconds for Paga transactions to go through. “It takes seconds. I will ask you for your phone number, and you get an alert, and the person also gets an alert. The person gets the alert, then contacts the sender to get withdrawal code. It is not possible for someone else to have that code except you and the sender. If the person is a Paga customer, the money just goes straight into his account and he can withdraw it at will.
She said many people still have the cash-mentality. “It is mindset that is stopping people. If it is not secured, people will not want to use it. The industry may not meet 100 per cent of the target the CBN set on cashless banking but the foundation has been built. It is making more people cash-less. People can now transfer money instead of carrying cash. Some customers want to get paid and prefer to get the money where they are going. Speed, convenience are part of our advantage. Paga provides 24/7 service. It takes less time to make transactions in Paga than using the banking halls. It is less expensive.
“We have a significant role to play in Nigeria. Our agent network will have significant role to play in building reach. We will continue to work with other networks to build infrastructure. We will engage the banks. By partnering with the banks, we want to ensure that all Nigerians get banked. They will have financial inclusion. We are currently partnering with over 10 banks to make this happen. We are confident about the future,” she said.
Transactions processed
Paga said it processed over 15 million transactions worth N154 billion since inception. It is excited over significant rise in the adoption of its services and that the firm has over three million users using its agent and online/mobile payment channels to send and receive payments.
The new milestone, she said shows that the industry is making more progress than previously reported. “Looking forward, it is easier to see the role Paga and the rest of the industry will play in reducing the obvious issues around payments in Nigeria, boosting economic returns and promoting financial inclusion,” it said.
It credits the rapid growth to understanding the unique challenges faced by Nigerians looking for a simpler way to make payments.
“Whether it’s paying for a TV subscription; child’s school fees; a visa; people buying airtime to stay connected to the ones they love or a new business finally being able to accept payments from its customers Paga is needed. With every transaction, there is some emotional connotation for the end user and our ability to relate to that and create solutions that make everyday life possible for Nigerians is the one reason people continue to choose Paga,” it said.
Founded in 2009, the company remains focused on building a payments ecosystem that can be leveraged by banks, businesses, and consumers. Paga’s agent network is at the core of that ecosystem. Paga now has over 8,300 agents in 35 states – the largest and most active network in Nigeria. The agents are located where people can comfortably go in to make payments within their community.
“We believe strongly that accessibility still has a big role to play in the future of mobile payments and financial inclusion. With the unique challenges around connectivity in Nigeria, having a viable agent network remains key to ensuring that every Nigerian, irrespective of the person’s location has access to finance,” it said.
