E-payment: Nigeria records a 387% rise in usage
A report has shown a significant rise in the usage of electronic payment channels by Nigerians, with utility bill payments via these channels rising by 387% from the N189.50b recorded in the first four months of 2019.
What factors contributed to this?
The Nigeria Inter-Bank Settlement System (NIBSS) reported a surge in the usage of electronic payment channels following the coronavirus pandemic and its effects, especially the restrictions on movement. NIBSS also noted that the rise in e-payment usage has been consistent in the last three years, with N363.87b between January and April 2020; N716.99b in the same period in 2021; and N923.24b in the corresponding period of 2022.
What are examples of these channels?
They include Internet banking, Mobile banking, USSD, and agent networks. According to the National President, Association of Mobile Money Agents in Nigeria, Victor Olojo, telecommunication companies are making it easy for Nigerians to carry out transactions, and the rise of fintech is also fuelling the growth. These, he said, are in addition to the adjustments people have been forced to make as a result of the coronavirus pandemic.
Another industry expert linked the e-payment usage growth to the convenience and speed these channels afford users. “Convenience and speed are what is driving this. Mobile is driving this adoption fast. As I have said, mobile enables on-the-go payment. It is not location-based. Mobile is the way to go, mobile is what is driving adoption”, he said.