Banks and fintechs are at the centre of Point of Sale (PoS) machines deployment across the country. The use of the machine and other e-payment platforms have increased in recent months as the need to serve new entrants in the digital banking space continues. Speed and accessibility are some of the key factors attracting cardholders to e-payment channels, writes COLLINS NWEZE.
Digital banking is the new route that financial service providers and regulators are travelling to offer services to the banked, and encourage the unbanked and underbanked to join the financial services net.
Two channels have for long dominated the digital banking space – mobile banking and Point of Sale (PoS) services.
Despite any channel of adoption, speed, accessibility and security are key factors that determine channel to be adopted by cardholders.
In the mobile banking space, the e-Bills Pay was a major contributor to the N39.58 trillion cashless transactions achieved in January. Its is an account-based, online real-time product that facilitates the payment of bills from an account. It ensures instant credit of payments and receipt of collections on behalf of billers/merchant recruited on the platform.
The platform is used for paying utility bills, cable TV subscriptions, hotel and airline bookings, school fees, and airtime top-up, among others.
According to Nigeria Interbank Settlement System (NIBSS), more Nigerians are embracing e-payments.
Also, naira scarcity due to currency redesign policy of the Central Bank of Nigeria (CBN) pushed PoS transactions to N807.16 billion in January.
This is a 40.69 per cent yearly increase from the N573.72 billion transactions that was done in the same month last year.
The NIBSS monitors cashless transactions through the Nigeria Instant Payment System (NIPS) and PoS terminals. Total NIP transactions for the period rose by 45.52 per cent from N26.65 trillion in January, last year to N38.77 trillion last January.
The use of electronic channels for transactions grew by 45.50 per cent yearly from 438.48 million times to 638 million times in the period under review.
According to the NIBSS, 955,234 PoS terminals were deployed by January, last year.
Managing Director, Systemspecs Technology Services Limited, Demola Igbalajobi said banks, telcos and switches have roles to play in achieving secured payments.
He said stakeholders should adopt process engender confidence in the system.
The Nigeria Electronic Fraud Forum (NeFF) said the introduction of chip-and-pin payment cards have led to drastic drop in Automated Teller Machines (ATMs) card fraud. (The Nation)