The Nation Newspaper

Tag: e-payment

  • 40% African bank customer embrace e-payment, says report

    Some 40 per cent of the African banking customers surveyed prefer to use digital channels for transactions, roughly the same share as those who prefer branches.

    In four of the continent’s major banking markets, the share of customers who prefer digital channels is significantly higher than the share preferring the branch channel, according to a 2018 report by McKinsey & Company on Growth and innovation in African retail banking.

    Banks can adopt one of four distinct digital strategies: The first is to digitally transform their existing operations, to increase their share of digital sales and transactions to beyond 60 to 70 percent on each measure, as Kenya-based Equity Bank has done. Second, banks can partner with telcos or fintechs to deliver mobile financial services to their clients at a cost below that of the branch network.

    An example, also from Kenya, is M- Shwari, the mobile-based loans application formed in partnership between Commercial Bank of Africa and Safaricom. The third digital strategy is to build a digital bank from scratch as Nigeria’s Wema Bank did in launching ALAT, Africa’s first fully digital bank, in 2017. Finally, banks can build an ecosystem or platform of non-banking services. Alipay in China and the Commercial Bank of Australia have applied this approach at scale in areas such as travel and hospitality (Alipay) and home-buying (CBA).

    Read also: Ecobank takes e-payment to Ariaria market

    Banks, telcos, ministries of finance, central banks and leaders in the banking industry from 10 nations across the West African region are set to gather in Lagos at the Future Banking Tech West Africa Summit to discuss efforts aimed at increasing financial inclusion in the sub-region by 2020. The Summit will address over two days of panel discussions and case studies showcasing the full value chain of the region’s banking and financial sector to best achieve financial inclusion and sustainable banking sector growth.

    The ongoing Fourth Industrial Revolution is a technological transformation that is changing the way we live, work and communicate. It is altering every aspect of our society and economy, including the financial sector. In Sub-Saharan Africa, 44 per cent of the population subscribed to mobile services in 2017. By 2025, the number of subscribers is expected to grow to 52 per cent, and 87 per cent of those subscribers are expected to have mobile broadband access. Results of a recent Global Findex survey reveals significant progress in financial inclusion driven by a new generation of financial services accessed through mobile phones and the internet.

  • Ecobank takes e-payment to Ariaria market

    The Managing Director, Ecobank Nigeria, Patrick Akinwuntan has assured businesses in Ariaria Market, Aba of better ease in receiving their payments.

    The Ecobank Managing Director who launched the Ecobankpay zone at the market said it will facilitate easy, secure and convenient transactions for merchants within Ariaria and other surrounding markets.

    The EcobankPay Zone is a digital payment hub enabling businesses within a location adopt Ecobank’s wide range of digital products for ease of payments for goods and services.

    “It is our determination to create ease of payment and boost economic activities most especially in a town like Aba, renowned for indigenous production of shoes and textiles. Our digital offering will be an opportunity for both buyers and sellers to increase their sales in an enhanced and secured way and without fear. The EcobankPay digital hub makes it easy for the seller to be paid instantly and buyers pay with ease and also have rest of mind associated with doing business without carrying cash around. Our Xpress point is also around for you to transact with ease, in as much as you have your phone you can bank with Ecobank”.

    “The initiative of the Ecobankpay zone is to deepen financial inclusion in the communities and specifically aid business transactions between merchants and clients. EcobankPay’s unique offering is that anyone from any bank in Nigeria can pay with MasterPass, mVISA and mCASH with any phone by scanning QR code or using USSD”. “if the person that wishes to buy goods from you is coming from a bank that has mVisa and wishes to pay, the same QRcode would accept an mVisa payment and vice versa. That creates synergy between us and the other banks and convenience for the merchants. And as you know, the QRcode is much cheaper than having a point of sale (PoS)”.

     

  • POS leads e-payment transactions with 286m deals

    Point of Sale (POS) transactions is leading other e-payment channels, rising from nine million transactions in 2013 to 285.89 million last year, the Central Bank of Nigeria (CBN) has said.

    CBN Deputy Governor (Financial System Stability), Mrs. Aishah Ahmad, who broke the news at the weekend, said that Automated Teller Machine (ATM) transactions rose by over 196 per cent (295 million in 2013 compared with 875 million in 2018.

    However, electronic transfers, via web, rose 2,440 per cent (from two million in 2013 to 50.8 million in 2018 while  paper-based payments transactions using cheques declined from 14 million transactions conducted using cheques in 2013 to nine million transactions in 2018. Mrs. Ahmad spoke at the Electronic payments Incentive Scheme Efficiency Awards held in Lagos at the weekend.

    Mrs. Ahmad said the Nigerian payment system has changed significantly and continues to evolve.

    She said: “New technologies and a growing number of Financial Technology companies in the markets are supporting faster payments and settlements. Technological advancements and the Adoption of mobile as the primary channel have also made it easier and cheaper to conduct electronic transactions.”

    Adding that the developments have been validated by the astronomical increases in transaction volumes in virtually all electronic payment platforms, she said the categories of the awards reflect CBN’s aspirations for the payment system, recognising leaders in bank and non-bank categories in the critical areas of driving cashless, platform efficiency, innovation and customer experience.

    “Despite the progress recorded we are not yet at the goal. Electronic transactions are not yet at desired levels, increasing digitization heightens cyber security threats while policy makers are faced with the twin but often conflicting objectives of fostering technological innovation whilst managing the risks to financial stability,” Mrs. Ahmad said.

    She said the CBN was undertaking a review of the PSV 2020 (created to provide a sound regulatory framework that supports innovation, protects consumers and promotes financial stability) the proposed refreshed strategy is tagged PSV 2030.

    Also, the Shared Agent Network Expansion Facility was established in March 2018 by the body of deposit money banks, mobile money operators and super agents, to expand the number of agent outlets by 500k to support the National Financial Inclusion strategy objectives. With The Shared Agent Network Expansion Facility (SANEF), the number of agents per 10,000 individuals will increase from four agents to 65 agents by 2020.

  • E-payment threatened by rising transaction failures

    The electronic payment (e-payment) which has gained wide acceptance in the last five years is threatened by transaction failures in key channels, especially Point of Sale (PoS), The Nation has learnt.

    PoS transaction failure hit all time high yesterday, with a leading commercial bank recording 30,000 failure  on its platform. The bank, which asked not to be named, disclosed that transaction failure on PoS had deteriorated since October last year, after the Nigeria Inter-Bank Settlement System (NIBSS), failed to upgrade its technology to accommodate the rising use of e-payment channels.

    The PoS transaction failure, the lender said, is now at its peak, with estimated 40 per cent failure rate, even when customers’ accounts are funded.

    The bank alleged that  NIBSS’s technology is no longer sufficient to handle the volume of transactions in the country.

    The NIBSS operates Nigeria Central Switch, handles inter-bank payments and settlements as well as Nigeria Automated Clearing System (NACS). The NACS facilitates the electronic clearing of cheques and other paper-based instruments, electronic funds transfer, Automated Direct Credits and Automated Direct Debits.

    Banking sources said NIBSS, which previously denied being part of the problem, is yet to upgrade its technology to tackle the challenge.

    Head Corporate Communications at NIBSS, Lilian Phido, did not respond to text message sent to her on the matter, as well as phone calls.

    But findings showed that banks are now hiring more hands to resolve the cases of PoS transaction failure within eight working days as stipulated by the Central Bank of Nigeria (CBN).

    The lender also told The Nation that it has been engaging NIBSS on the matter, but not getting desired feedback adding that unless NIBSS upgrades its technology, the situation might get worse.

    According to the bank source: “Our customers keep complaining about failed transactions. But these customers will not want to understand that the challenge of failed transaction has nothing to do with our bank. It is purely NIBSS that is responsible for transaction settlement and when that does not happen, the transaction fails. We want to let all our customers to know that the transaction failure is not within our control”.

    The bank source said: ” Aside NIBSS, some banks also need to improve on their technology. We also believe that regulators needed to reduce the number of parties involved in the transaction chain. We are also calling for a bank-to-merchant plan, but regulation as at today, says NIBSS has to be involved”.

     

  • E-payment transactions hit N56.85tr, say reports

    Reports from the Nigerian Interbank Settlement System (NIBSS) have indicated that Nigeria’s electronic payment (e-payment) services, recorded transactions worth N56.85 trillion from January to September, last year.

    The report, obtained by the News Agency of Nigeria (NAN) yesterday, showed an increase of N16.4 trillion when compared to the N40.45 trillion that was recorded in the corresponding period of 2017.

    The report showed that most of the electronic transactions were done through the NIBSS Instant Payment (NIP), Point of Sale (PoS), Automated Transfer Machines (ATMs), Mobile Money, Electronic Bills Payment (E-Bills) and Web payments.

    A breakdown of the report showed that ATMs transactions grew from N4.61 trillion in 2017 to N4.76 trillion at the end of the third quarter of 2018.

    Also, the volume of transactions on ATMs under the period in review grew from 560.86 million in 2017, to 650.06 million in 2018.

    The report showed a rise of about N635 billion in the use of POS machines to carry out payments by Nigerians.

    Under the review period, 98.73 million transactions worth N975 billion were carried out using POS in 2017 and in 2018, the volume grew to 196.83 million, valued at N1.61 trillion.

    Similarly, the volume of transactions carried out by Nigerians, using mobile money rose from N795.18 billion in 2017, to N1.22 trillion as at September 2018.

    Also, using the web payment channel, the total value of transactions under the review period rose from N129.24 billion in 2017 to N183.07 billion in 2018.

    However, the value of such transactions on e-bill payments, which allowed customers to pay utility bills such as power, cable and so on online, declined from N420.73 billion in 2017 to N370 billion in 2018.

    A financial analyst, Dr. Patricia Auta, said the NIBSS report showed an increased awareness and use of technology by individuals and businesses in the country.

    Auta urged the Central Bank of Nigeria (CBN) to intensify efforts on cashless economy, especially in states, to further grow the electronic payment space.

    She advised banks to stay competitive and drive growth by providing innovative alternate payment channels to customers.

  • Sterling Bank deepens e-payment with new device

    More than 141 million mobile subscribers in the country using feature phones can now upgrade to smartphones courtesy of Sterling Bank-MTN Pay Small Small device financing scheme launched in Lagos.

    Introduced by Sterling Bank Plc, MTN Nigeria and Technology Distributions Limited (TD), the new scheme democratises the acquisition of smartphones as well as access to the digital ecosystem through smartphones pre-bundled with data.

    Only 13 per cent of Nigeria’s 162 million mobile phone subscribers use smartphones and have robust access to the Internet, social and business applications, among others.

    Speaking at the media launch,  Group Head of Strategy and New Business, Sterling Bank Plc, Shina Atilola, said: “Knowledge and information transforms economies. Our collaboration with MTN Nigeria, TD and Payjoy to democratise access to smartphones will make knowledge and information accessible to millions of Nigerians which will improve their lives and well-being.

    “It is important that a lot more Nigerians have the opportunity to engage in societal dialogues irrespective of their social class and education. A person without access to information cannot effectively grow a business, live well and contribute to the economy. We are excited about the strong partnerships forged to deliver Pay Small Small to improve the lives of our people while delivering social impact.”

    Atilola further noted that the bank will continue to be at the forefront of seeking valuable partnerships that will enrich the lives of Nigerians. “At Sterling Bank, growing the economy remains our priority, and that is why we always design solutions that will translate into value for Nigerians. This alliance with MTN NIgeria, TD and Payjoy is a testament to the bank’s commitment to ensuring that every Nigerian is availed the opportunity to own a smart phone with all its attendant benefits which include Insurance cover and free data.”

    Also speaking at the event,  Managing Director, TD, Gozy Ijogun, expressed delight that her organisation is part of the partnership that will increase smartphone penetration with its attendant benefits to Nigerians who ordinarily cannot afford to pay the lump sum that is required to acquire these devices. “Things required for optimum living are paid upfront which makes life difficult for many Nigerians. What we are unveiling today is a revolutionary partnership which makes it possible and affordable for anyone to visit the MTN Nigeria experience centre close to them and walk out with the latest smartphone device with as low as N7,000 monthly payment in less than 10 minutes.”

    Senior Manager, Data & Devices, MTN Nigeria, Abiodun Ajayi, said: “We believe everyday Nigerians deserve the benefit of a modern well-connected life. Nothing brings this to the fore more than a smartphone which eliminates the hassles associated with visiting cybercafes.

    “However, 80 per cent of Nigerian phone users are excluded and do not have access to smartphones because they cannot afford it. Today, we have unveiled a service that bridges the affordability gap. It will not only improve the lives of millions of Nigerians; this service will also ensure that Nigeria experiences rapid GDP growth.”

  • FirstBank promotes e-payment with Digital Lab

    FirstBank Digital Lab will convene for its second Fireside chat this Friday, the lender has said. The bank’s digital lab would play host to the event with the topic “Artificial Intelligence in Banking & Payments”, facilitated by OpeAdeoye, Managing Partner, 2iLabs.

    The FirstBank Digital Lab Fireside Chat is a public conversation that brings together active players in the technology community to have thought-provoking discussions, revealing new perspectives on a range of discussion points, pulling out genuinely relevant insights.

    The topic for this edition is in recognition of the extensive and growing impact Artificial Intelligence (Ai) is having on the modus operandi of the Nigerian banking industry as a basis for competitive advantage in service delivery by industry players and its culminating influence in the experience by end users, customers.

    The monthly series which debuted on Friday, 27 July 2018 highlights FirstBank’s digital-centric approach to business as it aims to promote fintech penetration amongst its stakeholders. The engagement provides a vantage forum for practitioners to have experience of success stories and foster the exchange of ideas on trends in the industry.

     

  • GTBank, NIS partner on e-payment

    GTBank has partnered New Works Limited and the Nigeria Immigration Service (NIS) to deliver an end-to-end process for Nigerians to apply for their International Passports online and make payments at the official rates online.

    The multi-channel payment system will enable Nigerians apply for all international passport types (new and renewals) online and make payments on all  GTBank’s e-channels, using the reference ID generated at the application stage.

    To formally launch the partnership, Immigration Service Comptroller-General, Muhammed Babandede, inuagurated the GTBank Payment Office located inside the Passport Office Ikoyi, Lagos. Present at the event were GTBank CEO, Segun Agbaje and representative of New Works Limited, Usman Kuso.

    Five other payment offices will be set up at Alausa, Festac, Port Harcourt, Kano and the NIS Headquarters in Abuja.  The GTBank payment offices will make paying for immigration services at NIS offices easy and seamless.

    Commenting on the partnership with New Works and the Nigeria Immigration Service, Agbaje said: “We are delighted to be at the forefront of digital banking solutions that is making banking faster, cheaper and simpler for every Nigerian.”

     

  • Heritage Bank depeens e-payment

    Heritage Bank Plc has said it is committed to innovative banking through its Transparent  MasterCard.

    Head of Corporate Communications of the bank, Fela Ibidapo disclosed this in a statement over the weekend, where he highlighted the philosophy behind the bank’s e-payments.

    According to him, there is more to e-payment than  customers are enjoying, promising achieving greater heights in e-payments that deliver unparalleled convenience and security through the Heritage Bank Transparent MasterCard.

    He said to own a Heritage Bank Transparent MasterCard is easy as the card comes with no cost beyond the cost of applying for the average MasterCard.

    He observed that there was a huge difference between the  growth in volume of e-payment and the potential available, if the number of unbanked Nigerians with access to mobile telephone services is anything to go by.

    According to him, while the volume of e-payment in Nigeria grew from N18.1trillion in 2012 to N35.1trillion in 2014 with transaction through Point of Sale (POS) also increasing from N48 billion in 2013 to N312 billion in 2014, the growth has not mirrored the huge population of mobile phone users in the country.

     

     

  • Heritage Bank reiterates commitment to e-payment

    Heritage Bank Plc is com-mitted to innovative banking services with its transparent MasterCard.

    Its Head of Corporate Communications, Fela Ibidapo, disclosed this in a statement over the weekend, where he highlighted the philosophy behind the bank’s e-payment offerings.

    According to him, there is more to e-payment than Nigerian banking customers are currently enjoying. He promised achieving greater heights in e-payment services, which deliver unparalleled convenience and security through the Heritage Bank Transparent MasterCard.

    Ibidapo said to own a Heritage Bank Transparent MasterCard is easy, as the card comes with no additional cost beyond the cost of applying for the average MasterCard.

    He observed that there was a huge difference between the current growth in volume of e-payment in the country and the potential available, if the number of unbanked Nigerians with access to mobile telephone services is anything to go by.

    According to him, while the volume of e-payment in Nigeria grew from N18.1trillion in 2012 to N35.1trillion in 2014 with transaction through Point of Sale (POS) also increasing from N48 billion in 2013 to N312 billion in 2014, the growth has not mirrored the huge population of mobile phone users in the country, which currently stands at more than 105 million while about 60 million Nigerians, who do not have bank accounts, have phones.

    He also said innovation was inevitable in the banking industry due to changes in dynamics across the globe, which have penetrated the Nigerian banking industry and  are driven by forces of globalisation, self-service mobile devices and regulation.

    The impact of these changes on the Nigerian banking landscape, he said, has reflected in the sharp increase in the growth of electronic payment services between 2012 and 2014 in the country. He remarked that e-payment is now a commodity and innovative e-payment is the way to go.

    He said Heritage Bank has always been driven on the path of continuous innovation, transformed its interior of banking halls and set out deposit machines in all its branches nationwide.

    Ibidapo also observed that Heritage Bank has equally launched transparent MasterCard in Nigeria and transformed small and medium scale enterprise (SME) banking approach.

    “The Heritage Bank Transparent MasterCard distinguishes its customers. It gives them the prestige and excitement of being part of innovation, which is what the card represents. The youths as well as adults will find it very attractive,” he said.

    Ibidapo added that the bank is the lender of the future because its style is quite different and it caters for everyone, whether young or old.