Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,143,420 members, 7,781,228 topics. Date: Friday, 29 March 2024 at 10:56 AM

Nigeria: Mobile Payments Still Hugely Untapped - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Nigeria: Mobile Payments Still Hugely Untapped (7283 Views)

How Seo & Content Can Contribute Hugely To Your Online Success / The Rise To Dominance Of Digital Wallets And Mobile Payments / Key Benefits Of Mobile Payments To Increase Sales (2) (3) (4)

(1) (2) (Reply) (Go Down)

Nigeria: Mobile Payments Still Hugely Untapped by postbox: 5:43pm On Feb 09, 2018
Data from a new report series from the NBS, produced in collaboration with the CBN, reveal that 462 million transactions valued at N29trn were recorded on electronic payment channels in Q4 2017.

As expected, ATM transactions dominated with a volume of 240 million. Internet subscriptions directly correlated with electronic transactions stood at 98 million in December 2017, according to the Nigerian Communications Commission. This translates into a penetration of 53%.

Based on data from the Nigeria Inter-bank Settlement System (NIBSS), total active bank accounts as at February 2017 stood at 67 million, pointing to 36% exposure (of the country’s population) to electronic payment transactions. Financial inclusion is still far from its optimal level.

The volume of point-of-sale (PoS) transactions shows the impact of the cashless policy on the economy. The NBS data show that 47 million PoS transactions were recorded in Q4 2017, representing increases of 20% q/q and 113% y/y.

Meanwhile, mobile payments recorded 12 million transactions valued at N307bn (US$1bn) in Q4. The value of transactions grew by just 30% y/y and accounted for only 1.1% of total electronic transactions.

Mobile banking remains hugely untapped. Indeed, better synergy between telecommunication operators and banks would boost e-transactions. Kenya is the leader in this field through M-Pesa and other platforms. Ghana is worth a mention, too: its central bank has reported total mobile transactions in 2017 (12 months) of GHS156bn (US$35.9bn), compared with KES4.6trn (US$45.3bn) for the 12 months to June 2017.


SOURCE: https://brandspurng.com/nigeria-mobile-payments-still-hugely-untapped/

Re: Nigeria: Mobile Payments Still Hugely Untapped by BrandSpurNG: 7:09am On Feb 10, 2018
interesting

1 Like

Re: Nigeria: Mobile Payments Still Hugely Untapped by bigtt76(f): 1:57pm On Feb 10, 2018
This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments even though I can use my bank issued cards to make payments through my mobile, it does not equate to Mobile Money ...but they won't allow innovators to tap into this rather they would be giving all sort of requirements for mobile money license with ridiculous fees undecided

postbox:
Data from a new report series from the NBS, produced in collaboration with the CBN, reveal that 462 million transactions valued at N29trn were recorded on electronic payment channels in Q4 2017.

As expected, ATM transactions dominated with a volume of 240 million. Internet subscriptions directly correlated with electronic transactions stood at 98 million in December 2017, according to the Nigerian Communications Commission. This translates into a penetration of 53%.

Based on data from the Nigeria Inter-bank Settlement System (NIBSS), total active bank accounts as at February 2017 stood at 67 million, pointing to 36% exposure (of the country’s population) to electronic payment transactions. Financial inclusion is still far from its optimal level.

The volume of point-of-sale (PoS) transactions shows the impact of the cashless policy on the economy. The NBS data show that 47 million PoS transactions were recorded in Q4 2017, representing increases of 20% q/q and 113% y/y.

Meanwhile, mobile payments recorded 12 million transactions valued at N307bn (US$1bn) in Q4. The value of transactions grew by just 30% y/y and accounted for only 1.1% of total electronic transactions.

Mobile banking remains hugely untapped. Indeed, better synergy between telecommunication operators and banks would boost e-transactions. Kenya is the leader in this field through M-Pesa and other platforms. Ghana is worth a mention, too: its central bank has reported total mobile transactions in 2017 (12 months) of GHS156bn (US$35.9bn), compared with KES4.6trn (US$45.3bn) for the 12 months to June 2017.


SOURCE: https://brandspurng.com/nigeria-mobile-payments-still-hugely-untapped/

3 Likes 1 Share

Re: Nigeria: Mobile Payments Still Hugely Untapped by rodeo0070(m): 7:08am On Feb 12, 2018
Na wa o...
Re: Nigeria: Mobile Payments Still Hugely Untapped by uzomagic(m): 3:03pm On Mar 26, 2018
The fact that the Central Bank is financing research in this area shows some improvements may be in the offing.
Re: Nigeria: Mobile Payments Still Hugely Untapped by Castleberry: 7:18am On Mar 27, 2018
Okay
Re: Nigeria: Mobile Payments Still Hugely Untapped by dust144(m): 7:20am On Mar 27, 2018
What platform can we use to tap it?
Re: Nigeria: Mobile Payments Still Hugely Untapped by Sarang(f): 7:20am On Mar 27, 2018
smiley

It's only in Nigeria that mobile banking is useless maka ndi thief grin grin

Please see my signature

1 Like

Re: Nigeria: Mobile Payments Still Hugely Untapped by talk2hb1(m): 7:23am On Mar 27, 2018
How do I get started tapping into this opportunity of mobile payment when investors are not their to help finance your project undecided
Drop me 25million naira and see me develop my secret mobile payment solution and take it to market in less than six month

2 Likes

Re: Nigeria: Mobile Payments Still Hugely Untapped by Doerstech(m): 7:24am On Mar 27, 2018
Interesting
Re: Nigeria: Mobile Payments Still Hugely Untapped by ZUBY77(m): 7:26am On Mar 27, 2018
How many percentage of your population is educated?
I understand Nigeria includes the same Vagabonds unleashing mayhem all over Southern and Middle belt Nigeria.

4 Likes

Re: Nigeria: Mobile Payments Still Hugely Untapped by id4sho(m): 7:27am On Mar 27, 2018
MMM made it popular na, chai mavrodi don die with my money.
Re: Nigeria: Mobile Payments Still Hugely Untapped by Pavore9: 7:31am On Mar 27, 2018
bigtt76:
This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments even though I can use my bank issued cards to make payments through my mobile, it does not equate to Mobile Money ...but they won't allow innovators to tap into this rather they would be giving all sort of requirements for mobile money license with ridiculous fees undecided


They are really confused! Mobile Money is really independent of Banks just as we have the Mpesa here in Kenya . I receive international money transfers straight to my phone number and I go to the kiosk beside me selling grocery to cash the money...no bank involved.

1 Like 1 Share

Re: Nigeria: Mobile Payments Still Hugely Untapped by Chuks9000: 7:41am On Mar 27, 2018
bigtt76:
This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments


What exactly do you mean?
Mobile banking, mobile money...
What is the difference aside being able to carry out transactions from your mobile phone?
Re: Nigeria: Mobile Payments Still Hugely Untapped by HAH: 7:43am On Mar 27, 2018
bigtt76:
This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments even though I can use my bank issued cards to make payments through my mobile, it does not equate to Mobile Money ...but they won't allow innovators to tap into this rather they would be giving all sort of requirements for mobile money license with ridiculous fees undecided

so what is the mobile money ? I think mobile money is also a source of making payment in mobility hence the referral mobile payment, this is irrespective of whether cards are used or not
Re: Nigeria: Mobile Payments Still Hugely Untapped by HAH: 7:50am On Mar 27, 2018
Pavore9:


They are really confused! Mobile Money is really independent of Banks just as we have the Mpesa here in Kenya . I receive international money transfers straight to my phone number and I go to the kiosk beside me selling grocery to cash the money...no bank involved.
but there was payment involved, you see the term money does not only mean cash, money is anything exchanged for goods and services, whether it goes through the bank or not. Is very right for CBN to term mobile money as mobile payment
Re: Nigeria: Mobile Payments Still Hugely Untapped by FarahAideed: 7:52am On Mar 27, 2018
The CBN messed up the mobile payment space years ago when it started interfering and shifting the goal post every other month till investors lost interest because they kept losing their investment every other week to a CBN mobile payment policy direction change .
Re: Nigeria: Mobile Payments Still Hugely Untapped by OboOlora(f): 7:57am On Mar 27, 2018
I remember how one bank tried pay with capture, hahahaha it was DOA with all d money spent on adverts

2 Likes

Re: Nigeria: Mobile Payments Still Hugely Untapped by Pavore9: 8:00am On Mar 27, 2018
HAH:
but there was payment involved, you see the term money does not only mean cash, money is anything exchanged for goods and services, whether it goes through the bank or not. Is very right for CBN to term mobile money as mobile payment

But our mobile payment is still tied to Banks as against the wider acknowledgement of what mobile money is known as. I need to comfortably send money to your phone number and you can cash it from an agent around you and without cashing it, use it to make payment for goods and services or even transfer it internationally......no bank is involved nor internet connection. Can you receive Western union or Moneygram transfer straight to your Nigerian phone number and go to the shop beside you and cash it?

1 Like 1 Share

Re: Nigeria: Mobile Payments Still Hugely Untapped by san316(m): 8:01am On Mar 27, 2018
Nigerians are skeptical about mobile platforms, at least many Nigerians. Especially when you have experienced transferring money to a wrong person or you money gets trapped in settlement.

Anyway, implementing the cashless system will further push people to buy in.

Especially #Octopus

2 Likes

Re: Nigeria: Mobile Payments Still Hugely Untapped by bigtt76(f): 8:07am On Mar 27, 2018
Mobile payments basically is you having access to a bank issued debit/credit, other stored value cards or bank's mobile apps to process payments on the go. Here you have your funds stored and managed by your banks. With Mobile Money, this is actually monies semi-outside the banking systems. It is stored in wallets created on your mobile SIM cards by the telecos. With this funds, you can make payments to other users of the same system.

Chuks9000:


What exactly do you mean?
Mobile banking, mobile money...
What is the difference aside being able to carry out transactions from your mobile phone?

1 Like

Re: Nigeria: Mobile Payments Still Hugely Untapped by Chuks9000: 8:14am On Mar 27, 2018
OboOlora:
I remember how one bank tried pay with capture, hahahaha it was DOA with all d money spent on adverts
PWC is like an advanced form of POS transaction.
Mobile banking/money is like a simplified form of branch banking. But this time, it uses the very basic form of tech available to the poorest. That is, USSD. Also, it is suppose to eradicate branch involvement (replacing it with bank or FinTech agents).
Just a form of banking that allows Iya Basira make or receive payments with her Nokia torchligh in a remote corner of the country.
Re: Nigeria: Mobile Payments Still Hugely Untapped by dyydxx: 8:26am On Mar 27, 2018
bigtt76:
Mobile payments basically is you having access to a bank issued debit/credit, other stored value cards or bank's mobile apps to process payments on the go. Here you have your funds stored and managed by your banks. With Mobile Money, this is actually monies semi-outside the banking systems. It is stored in wallets created on your mobile SIM cards by the telecos. With this funds, you can make payments to other users of the same system.


why has mobile money failed in Nigeria? Like it worked well in kenya a la M-PESA but Naija na another case, successful models elsewhere just don't work here
Re: Nigeria: Mobile Payments Still Hugely Untapped by HAH: 8:33am On Mar 27, 2018
Pavore9:


But our mobile payment is still tied to Banks as against the wider acknowledgement of what mobile money is known as. I need to comfortably send money to your phone number and you can cash it from an agent around you and without cashing it, use it to make payment for goods and services or even transfer it internationally......no bank is involved nor internet connection. Can you receive Western union or Moneygram transfer straight to your Nigerian phone number and go to the shop beside you and cash it?
you are right, this is one of the proposals of the mobile companies in Nigeria to have a mobile payment system like mpesa in Nigeria but it was blocked by the banks thorough vthe government, their fear is if this is allowed telecom companies will take one of the functions of banks, the CBN insisted mobile payment most pass through nibss . personally I believe telecom companies should start mobile payment without banks involve but should be regulated by nibss as well, may be an arm should be created within nibss to accommodate mobile money through telecom companies.

What are the charges associated with mpesa if I may ask?
Re: Nigeria: Mobile Payments Still Hugely Untapped by Jethrolite(m): 8:35am On Mar 27, 2018
talk2hb1:
How do I get started tapping into this opportunity of mobile payment when investors are not their to help finance your project undecided
Drop me 25million naira and see me develop my secret mobile payment solution and take it to market in less than six month
All these secret solutions are usually full of shit.
Re: Nigeria: Mobile Payments Still Hugely Untapped by Chuks9000: 9:35am On Mar 27, 2018
bigtt76:
Mobile payments basically is you having access to a bank issued debit/credit, other stored value cards or bank's mobile apps to process payments on the go. Here you have your funds stored and managed by your banks. With Mobile Money, this is actually monies semi-outside the banking systems. It is stored in wallets created on your mobile SIM cards by the telecos. With this funds, you can make payments to other users of the same system.

Ok. Here in Naija, the Telcos are required to work in partnerships with a bank (for the protection of public funds).
A lot would happen if the Telcos are allowed to manage monies outside the BOFIA.
.: the wallets you mentioned are either managed by the banks or by the FinTechs in conjunction with their banks. Anywhichway, your mobile number can be a wallet with any of the systems of your choice.
The truth is that, we are yet to embrace mobile money. Maybe because of lack of trust on our part as end users or because the institutions involved are yet to make it appealing enough for it to trend.
Re: Nigeria: Mobile Payments Still Hugely Untapped by Primemshelia(m): 9:50am On Mar 27, 2018
Ever since the airtime i bought online from my uba mobilebank app refused to show after seeing deductions on my account 2 consecutive times baba... Mans given up on this online banking stuffs till it gets more reliable like in the states
Re: Nigeria: Mobile Payments Still Hugely Untapped by goldtooth: 10:20am On Mar 27, 2018
I got a better understanding of mobile money after reading this thread.

(1) (2) (Reply)

Nigerian Online Auction Sites / Get The E-publication Of The Federal Government Tender Journal / Can Nigerian Verve Card (First Bank) be used in the U.A.E?

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 43
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.