How Nigeria can perfect e-payment transactions?
With the surge in the use of electronic payments by Nigerians in the first quarter of this year due to the scarcity of cash in the economy, there are still several unresolved failed ePayment transactions. How can these transaction gaps be addressed? Omoniyi Kolade, the CEO at Seerbit, joins CNBC Africa for this discussion.
Wed, 19 Apr 2023 17:59:26 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The significant growth in ePayments in Nigeria following policy initiatives underscores the importance of such measures in driving economic development.
- The presence of unbanked populations poses challenges in terms of financial literacy and inclusion, necessitating strategic interventions to bridge the gap.
- Effective management of transaction failures, infrastructure development, and stakeholder collaboration are crucial for the sustainable growth of Nigeria's ePayment ecosystem.
The landscape of electronic payments in Nigeria has experienced a significant surge in recent times, largely attributed to policy initiatives aimed at driving the adoption of digital transactions. Omoniyi Kolade, the CEO at Seerbit, recently shared insights on the growth trajectory of ePayments in Nigeria and the impact of these policy changes on the market. According to Kolade, there has been an impressive 23.3% growth in the market since the implementation of these policies, highlighting the importance of such initiatives in shaping the economy.
However, with the rise in transaction volumes, there have also been challenges associated with failed ePayment transactions. Kolade pointed out that a significant portion of the Nigerian population remains unbanked, representing about 35% of the total population. This poses a challenge in terms of literacy and financial inclusion, leading to gaps in the system that need to be addressed to ensure a seamless transition to digital payments.
One of the key issues highlighted by Kolade is the need for effective management of these challenges to drive adoption rates and ensure the sustainability of ePayment solutions. While there have been notable advancements in the sector, there is still work to be done in terms of infrastructure development and stakeholder collaboration. The interface between telcos and banks, for instance, has been identified as a potential bottleneck that needs to be resolved to enhance the overall payment ecosystem.
In addressing these gaps, players like Seerbit are playing a crucial role in the ecosystem by focusing on scalability and reliability. Kolade emphasized the importance of anticipating and preparing for the rapid growth in electronic transactions, underscoring the need for robust infrastructure to support the increasing demand. By providing reliable payment solutions, companies like Seerbit are contributing to the evolution of Nigeria's ePayment landscape and driving towards a more efficient and inclusive financial system.
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