Cashless Transactions. Platforms, Challenges and Opportunities. The Story. A paper presented at the annual Conference of The Computer Professionals Registration Council of Nigeria. Segun Akano CEO, Upperlink Limited. How We Got Here….
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Platforms, Challenges and Opportunities
A paper presented at the annual Conference of The Computer Professionals Registration Council of Nigeria
CEO, Upperlink Limited
Specific economic activities covered within the context of the cashless initiative include:
-Paying for services
-Subscribing for services
-Collecting from one or more payer
-Aggregating deductible funds.
There are about 6 Principal Platforms viz:
-Point of Sale Terminal [POS]
-Automated Teller Machines [ATM]
-Web Gateways [Paydirect/Webpay]
-NIPS [NIBSS Instant Payment System]
-Account-to-Account Transfer [NEFT, RTGS]
Enablers are firms who on the face-value capabilities of the Cashless PLATFORMS build several solutions for organizations to manage outflow and inflow of Money through these gateways. Specific examples are:
-Payment Suites [eg. PayChoice, Remita]
-Collection Suites [BranchCollect, Remita, PayChoice, BankCollect]
Some are rather best described as ‘Teething Problems,’ Others are systemic and require conscientious consideration:
Poor communications network
Limited POS deployed
Interoperability of Cards on the platforms
Poor response time to customer complaints
Vulnerability to fraud
In the face of all these Nigeria still lags behind many nations in the use of ATMs and PoS terminals.
ATM per individual is very low in Nigeria and calls for immediate actions as shown:
80 % of the cash in Nigeria’s economy is still locked up in the hands of the economic participants in the informal sector.
It is estimated that cashless transactions in Nigeria is expected to grow at an annual rate of 85% in the next 5 years.
Forecast has it that overall transaction processing for banks and other financial services would surpass $15bn (N2.4trn) by the end of 2012.
Many more levels are expected to be created in the E- Business Value Chain that will open up our economy.
It is hoped that, if the immediate challenges are adressed, the objectives of CBN would have been met on the one hand and Nigeria will be on her way to be among the top 20 economies in the world by 2020 as envisioned by the present political administration.