Nigerian electronic banking growing fast as millions of dollars are spent on e-payments - CNBC Africa

Nigerian electronic banking growing fast as millions of dollars are spent on e-payments

Western Africa

by Aviwe Mtila 0

Faroun say Nigeria has to start looking beyond the POS terminal as just a payment system. Photo: www.publicdomainpictures.net

With card on POS (point of sale) machine transactions valued at 165 million US dollars utilised in December 2015 alone, Nigeria is becoming a huge market for electronic payments.

Wole Faroun, Founder and Managing Director at Netplusdotcom spoke to CNBC Africa about Nigeria’s growth in the electronic banking space as well as giving more insight on POS (point of sale) services.

READ THE HIGHLIGHTS FROM THE CONVERSATION BELOW OR WATCH THE VIDEO:

“There is a lot going on in the e-payment space in Nigeria. As a market and as an economy we should give ourselves a pat on the back. We’ve come a long way in the last five years from when the CBN started with the cashless policies. Initially banks were providing charges through which these cards were being issued. Today we have over 18 million debt and credit card holders.”

-          Wole Faroun, Founder and Managing Director at Netplusdotcom.

“Card procedures have risen about 30 per cent year-on-year which means the banking population is beginning to pay attention to this channel as a credible way of spending money and getting transactions done.”

-          Wole Faroun, Founder and Managing Director at Netplusdotcom.

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“There are still some challenges in the POS space. About 230 000 POSs are being deployed by Nigerian banks to date. But there are two major problems. One is being active, one in every five terminals are active, just about 20 per cent. The bigger problem is that there are millions of merchants in this country and if you only deploy 230 000 MPOS (mobile point of sale) and only about 50 000 are active, we still have a long way to go.”

-          Wole Faroun, Founder and Managing Director at Netplusdotcom.

“We have to start looking beyond the POS terminal as just a payment system. The merchant using it has to feel that it is adding much more value to the business as just a way to collect payment. That’s why we are introducing the mobile POS.”

-          Wole Faroun, Founder and Managing Director at Netplusdotcom.

“It’s only a matter of time till you will hardly see cheques because people are using online banking way more than cheques.”

-          Wole Faroun, Founder and Managing Director at Netplusdotcom.

“Part of what has happened in our own journey is the leap to mobile. Countries like the United Stated had to go through the big desktop to the smaller ones for mobile. We jumped right ahead. Our internet is on mobile and on mobile you have a lot capabilities. There’s mobile money, there’s mobile POS, there are mobile transfers and many more things that we are doing on mobile.”

Wole Faroun, Founder and Managing Director at Netplusdotcom.

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