The Nigeria’s electronic payments systems have been recording significant success as the number of Instant Pay users in the system is put at 11million with mobile and Unstructured Supplementary Service Data (USSD) accounting for 77 per cent of this figure.
USSD is a Global System for Mobile (GSM) communication technology that is used to send text between a mobile phone and an application program in the network. Applications may include prepaid roaming or mobile chatting.
Executive Director, Technology & Operations, Nigeria Inter-Bank Settlement Systems (NIBSS), Mrs. Christabel Onyejekwe, disclosed this at Point of Sale, PoS, innovation summit held in Lagos.
According to Onyejekwe, ‘innovation is critical to the growth of e-payment in country as disruption we are going to witness in the next five years will be bigger than what we have seen in the last 10 years. Data is the future. If any business is not based on data such business will not go far.’
She added that Instant Pay is the future of payment as card business is declining. “This is why MasterCard and Visa are coming up with mobile payment services such as Mvisa and MasterPass,” she said.
Mohammed Rudman, Chief Executive Officer, Internet Exchange Point of Nigeria (IXPN) speaking on impact of digitisation on banking system, said that Nigeria has recorded huge success toward digital transformation.
“There has been unprecedented transformation in the banking industry brought about by digitalisation, for example financial transactions involving the use and movement of physical cash are gradually declining.
“The use of POS and other several simple avenues of transaction have made life very easy to the consumers, the bank and government. Individuals no longer had to embark on a trip to the bank to conduct banking business, the banks on the other hand have less ratio of customers to attend to, in essence reduction in the cost of banking services as well as reduction in high security and safety risks – Remember the days of abundant bullion vans on our roads, with frequent reports of armed robbery?
“Reducing the amount of cash being physically handled ensures that CBN has less old notes to destroy and to print replacements. Government can now have better data to understand the informal sector of the economy which would assist in tax and general development planning,” he said.