Survey reveals that now is the time for Nigerian entrepreneurs to embrace e-commerce

Lagos, Nigeria, 28 May 2012 – The latest MasterCard Worldwide Online Shopping Survey has revealed a strong positive sentiment towards online shopping in Nigeria, with 92% of Nigerians surveyed who had shopped online saying that they were extremely or very satisfied with their overall shopping experience.

Additionally, 57% of those Nigerians who had shopped online in the three months prior to the survey being conducted indicated that they would be very or quite likely to continue making purchases online over the following six months.

“Nigerian online shoppers believed there was a wider purchase choice online rather than offline, that shopping online was extremely convenient and easy, and that most goods were cheaper online than they were offline,” says Omokehinde Ojomuyide, Country Manager, West Africa, MasterCard Worldwide.

The most popular online shops among Nigerians were those that offered music downloads, books, CDs, DVDs, apps and computer software for sale, with travel and coupon or deal websites capturing the highest value of purchases.

The survey, which serves as a benchmark that measures consumers’ propensity to shop online, was conducted by MasterCard in 25 countries from 5 December 2011 to 6 January 2012 and involved 12,500 consumers aged between 18 and 641 who were asked questions about their online shopping habits. MasterCard has conducted the survey in other markets since 2009; however this was the first time that Nigeria was surveyed. The survey and its accompanying reports do not represent MasterCard financial performance.

Ojomuyide, explaining why MasterCard conducted this survey in Nigeria, says “MasterCard’s vision is to create a world beyond cash. We are spearheading a focussed drive towards a cashless society in Africa, where cashless transactions will assist in improving the lives of the continent’s people by removing the risks and expenses associated with carrying, using and handling cash.”

“Shopping online is just one way that Nigerians can reduce their dependence on cash payments, and MasterCard conducted this research to identify the factors that influence Nigerians’ sentiments towards online shopping,” she continues.

The research also explored the reasons why the majority (78%) of Nigerians surveyed do not currently shop online. Of this group, 59% said they were not sure that making transactions online was secure or safe, 43% said they simply preferred to shop in-store to look at the physical products and an additional 40% raised their concerns about the time it would take for items to be delivered to them.

“Online security is a priority for MasterCard, and we work closely with our customer financial institutions and retailers in Nigeria to ensure that MasterCard cardholders can have the highest level of confidence when shopping online, and that retailers can gain greater assurance about the identity of the customer completing a purchase,” says Ojomuyide. “Using a MasterCard credit or debit card allows customers to make payments quickly and efficiently on a variety of secure websites – both Nigerian and international. We are working hard to grow the number of online retailers in the region who accept payment via a MasterCard card.”

Interestingly, 59% of respondents who had made an online purchase in the last three months had done so from an international website. There were however clear indications in the survey results that Nigerians are willing to shop locally, with online shoppers saying that they believe that buying through a Nigerian website would be faster (38%), more convenient (33%) and cheaper (32%).

“These findings are an obvious note for entrepreneurs that Nigerians who are shopping online see the value in purchasing locally, which creates a considerable business opportunity for them to enter this exciting retail sector now, while it is still its early growth stage,” says Ojomuyide.

The survey also highlighted some helpful recommendations for Nigerian entrepreneurs planning to enter this retail sector. When asked what features would encourage online shoppers to shop online even more, 78% of respondents suggested more user-friendly websites, 76% said enhanced payment security and 60% said no additional service charges.

Another interesting finding of the survey was that 93% of respondents were equipped with the ability to access the Internet through their mobile phones, and that 25% of these respondents had either recently made a purchase online using their mobile phone or were planning to do so within the next six months.

“While the world of online shopping may be relatively new to Nigerians, the world of mobile phone ownership certainly is not.” said Ojomuyide. “MasterCard believes there is a huge opportunity for online shopping growth in Nigeria utilising mobile phones, and we are actively working with Nigerian banks and other business organisations to advise on the development of mobile payment solutions.”

“Shopping online is becoming increasingly popular globally, as consumers realise the benefits of shopping from the comfort of their office or home, or with the convenience of their Internet-enabled mobile phone. The results of this survey show that, while online shopping in Nigeria is still in the early stages of growth, the country’s citizens are beginning to experience the considerable benefits that it can offer firsthand,” concludes Ojomuyide.

#ENDS#

MasterCard and its Suite of Research Properties
The MasterCard Worldwide Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Worldwide Index of Consumer Confidence, as well as the MasterCard Worldwide Index of Women’s Advancement, Online Shopping, Index of Financial Literacy, and the Index of Global Destination Cities. In addition to the Indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).

MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004.

About MasterCard
MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.

Contacts
Aderayo Bankole, CMC Connect, aderayobankole@cmcconnect.com, +234 (0) 8032011455
Geraldine Trennery, Tribeca Public Relations, geraldinet@tribecapr.co.za, +27 (0) 82 677 5201