Card failures drive migration to digital payment with less fraud risk
By Jeph Ajobaju, Chief Copy Editor
Bank customers are using mobile transfer more than other e-payment channels, according to the Nigeria Inter-Bank Settlement System (NIBSS) whose data shows that N4.8 trillion was transferred via mobile in the first four months of 2022 (4M 2022).
Yvonne Elaigwu, Head of Operations at OnePipe – a fintech API firm – chipped in by explaining that more Nigerians will jettison card payment for transfer payment because it is more secure.
The failure rate of card transactions also pushes many to use transfer, which is swifter and less prone to failure.
The pandemic when it raged from 2020 to 2021 forced the world to prioritise contactless interactions and this channel has also become one of the drivers of payment via transfer.
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Digital payment reduces fraud risk
“Today, the concept of pay with transfer is so accepted that the cab driver, who before now would only accept cash, (who probably never went through the POS stage) would, without much ado shares an account number to receive payment for his services, Elaigwu said, per Nairametrics.
“Data supports this shift and growth. The CBN report on e-payments showed that in 2020, ‘pay with transfer’ NIP volume was about 200 per cent more than the volume of payments made on both POS terminals and ATM machines and significantly more in transaction value.”
“Businesses are now more comfortable with receiving payments digitally; most businesses today are profiled to receive payments digitally and this is evidenced in the fact that the transaction value and volume of all e-payment platforms are consistently growing.
“I also think that we will also begin to see simplified and more secure payment methods as people continue to embrace ‘pay with transfer’.
“Data already shows that people are gravitating toward this mode of payment and the failure rate of card transactions is not making it harder.
“In the future, the relevance of card payments would be minimised, thereby reducing the associated fraud incidences accompanied by card payments.”