from OKORO CHINEDU in Lagos, Nigeria
Nigeria Bureau
LAGOS, (CAJ News) – THE growing penetration of mobile telephony, particularly the rapid growth of 4G broadband networks, is inspiring the significant growth of electronic payments in Nigeria.
Recent data from the Nigeria Inter-Bank Settlement System (NIBBS) indicates the total value of electronic transactions recorded under the NIBSS Instant Payments (NIP) increased by 13 percent month-on-month and 50 percent year-on-year N33,2 trillion (US$79,1 billion) in August this year.
On a cumulative basis, the value of transactions processed through NIP between January and August increased by 42 percent yearly to N238,7 trillion.
FBN Quest, the market watcher, noted although NIP transactions typically account for over 90 percent of electronic payment transactions due to the ease of use and ubiquitous nature of mobile phones, the data also showed considerable growth for other electronic transaction channels.
Transactions processed through the mobile (inter-scheme) channel increased 156 percent y/y to N1,8 trillion in August, thereby taking the year-to-date value to N11,1 trillion or a growth of 158 yearly.
Transactions made via point-of-sale (PoS) channels increased by 41 percent annually to N711 billion in August.
On a cumulative basis for the eight months to August, the value of transactions processed through PoS channels increased by 31 percent y/y to N5,3 trillion.
The E-bills pay platform, which makes it easier to pay bills, saw growth of 36 percent y/y N263 billion in August, and almost N2 trillion (+33 percent y/y) over the January to August.
“Payments through cheques are increasingly getting out of favour,” FBN Quest stated.
The continued push to deepen broadband penetration and the ongoing displacement of cash-based commerce with e-commerce, which have accelerated at a rapid pace, enhance the prospects for electronic payment channels.
– CAJ News