CBN, operator decry low patronage of e-payment channels

The Central Bank of Nigeria, CBN and operator in the e-payment system have decried low patronage of electronic, e -payment channels in the country, stating that cash continues to be the predominant method used for transactions.

They  also said that cheque system remains the second most important payment medium in the national payment system.

The Director, Banking and Payments System, CBN, Mr. Dipo Fatokun who disclosed this said “The success recorded so far on e-payments has been encouraging considering where the country started.

“Electronic payments channels have been broadened with several options such as online web payments, electronic funds transfer, various forms of cards,  Point of Sale, POS, ATM non-cash transactions etc.

The channels are recording enormous growth. As an instance, the NIBSS Instant Payments (NIP) used for online transfers has grown at an annual growth rate of

199 % and 190% in volume and value respectively with total transfers on the platform in 2013 grossing N10.85 trillion.

The development goes beyond electronic payments growth; even jobs have been created with over 21 MMOs licensed with each employing not less than 20 staff along with about 66,930 agents.”

Wole Ogunsola, an Executive of NEXTZON Business Services Limited,  who represented the Guest Lecturer, MD/CEO NEXTZON Business Services Limited, Mr.  Mac Atasi at the conference for finance correspondents held in Lagos stated that globally, governments are the biggest generators of payments, estimated at over $40 trillion in 2010.

He said “Though since the introduction of cashless policy in Lagos in January 2012, the use of e-payment channels has improved. According to him “In 2012, the volume and value of cheques cleared nationwide decreased by 1.3 and 11.2 per cent to 37.24 million and N19.80 trillion, from 37.72 million and N22.30 trillion, respectively, in 2011.

The development was attributed to the increase in the use of e-payment channels. The volume and value of electronic card (e-card) transactions increased from 355,252,401 and N1,671.4 billion in 2011 to 382,616,953 and N2,095.7 billion in 2012, reflecting an increase of 7.7 and 25.4 per cent, respectively.

The increase was attributed to enhanced public confidence in electronic card payments.”

Commenting on the data on various e-payment channels, he said “ Automated Teller Machines (ATMs) remained the most patronised, accounting for 98.1 per cent; Point-of-Sale (PoS) terminals at 0.7 per cent and Web and mobile payments accounted for 0.6 per cent each.”

He explained that the e-payment is a financial exchange that takes place online between buyers and sellers.

According to him “Consumers generally use electronic payments in one of the following ways: Purchase of Goods and Services. In this case payment is made at the time the goods or services are purchased.

A variety of payment instruments may be used, including cash, cheques, debit cards, credit cards or prepaid cards.  Secondly is the Bill Payments. This is a payment for previously acquired or contracted goods and services.

Payment may be recurring or nonrecurring. Recurring bill payments include items such as utility, telephone and mortgage/rent bills. Nonrecurring bills include items such as medical bills.

Vanguard