E-Payments: Building the Path to Digitalization
The recent data from the Nigeria Inter-Bank Settlement System (NIBSS) has shown solid growth across the various e-payment channels in the first 4 months of 2021 (January-April). NIBSS Instant Payment (NIP) transactions recorded a sturdy 107.9% y/y and 110.8% y/y growth in transaction value and volume to N79.5tn and 999.2m, respectively. For POS transactions, total transaction value and volume rose 56.0% y/y and 66.8% y/y to N2.0tn and 301.1m, respectively. Transactions from Mobile Interscheme transfers category recorded the most impressive growth as both transaction value and volume increased by 185.8% y/y and 112.4% y/y to N1.8tn and 67.0m, respectively.
The country’s favourable demographics, increasing mobile and internet penetration coupled with the need to achieve financial inclusion has brought significant opportunities in the fintech space. This has also forced traditional banks to be part of the change in driving new transformations in the financial system. From major funding announcements to new policy directions and strategic partnerships shows the fintech space is proving to be the frontier of the next decade. Nevertheless, we believe the sector still requires more investments and novel ideas to make it competitive with the players in developed climes. Recently, the NIBSS announced the launch of the NQR payment solution designed for merchants and customers to receive and make payments for goods and services.
Despite the increasing payment channels available to Nigerian consumers, the digital payments industry remains significantly under tapped and is poised for significant growth over the next few years. Payment for goods & services are mainly done with cash. Nevertheless, we highlight that the volume of non-cash transactions in Nigeria has showed some improvement over time. Nigeria’s fintech landscape consists of 210 – 250 fintech companies, key stakeholders (banks, telecom companies, and the government), enablers and funding partners (i.e., universities and research institutions, investors, incubators, technology, and consumers). According to Frost and Sullivan, the country’s fintech revenue is expected to reach US$543.3m in 2022 from US$153.1m in 2017.
Follow Our Activities On Facebook
4 hours ago
6 hours ago
22 hours ago
#BigBrotherNaija “Level Up” Week 6
Though last Sunday Sunday was meant to be a “no-eviction” day, it came as a shocker when fake housemate, Modella…
Dating in 2022; Situationships Are Not For The Fainthearted
Situationships are defined as that space between a defined relationship and something other than a friendship. It is a romantic…
20 Questions With Dinta Media’s Visual Storyteller, Chimeremogo Nwoke
Dinta Media is not really just a media production brand but we like to see ourselves as a hub for…
How Are Nigeria’s Small Businesses Coping?
The current rising rate of inflation and other burdens against the Nigerian economy speaks to the realities of the times.
Thrifting Is All The Rave Now, Here’s Why
By Amy Adindu The affordable clothing movement has gained global attention and acceptance as we’re all trying to look like…
#BigBrotherNaija “Level Up” Week 2
Week 2 of the highly watched Nigerian TV show kicked off with an early plot twist. On Sunday, Big Brother…
#BlueTunes: Burna Boy, Omah Lay Top Album Picks For July
July was a promising month for music lovers; from Lizzo’s album titled Special and Imagine Dragons’ Mercury, (Acts 1 &…
#BlueTunes Album Picks For June
Gbagada Express – Boj Bolaji Odojukan, popularly known as BOJ, was raised both in England and Nigeria. He shot to…
“A Creative’s Dream” with Jeff Chinonso
On the 26th of June 2022, Jeff Chinonso hosted his first solo art exhibition. The Augmented Reality exhibition themed “A…
Nigerian API-based company Thepeer raises $2.1 million
Tech infrastructure startup Thepeer has raised a $2.1 million seed round according to a report from TechCabal. Thepeer, a Nigerian…
Dika Ofoma, Ugochukwu Onuoha take on grief in Debut Film “The Way Things Happen”
The twenty-minute film focuses on the loss of a loved one, and how grief changes a person.
Nigerian Startups might just be Crippled by a Recently Leaked bill
Over the years there has been talks of amendment on the 2007 Act of the National Information & Technology Agency (NITDA).
Why We Love Kelechi Amadi Obi
The definition of talent is Kelechi Amadi’s iconic story. Imagine a person who studies law in school, gets called to Bar, and leaves it all for something different and unrelated…Painting!