E-payment transactions fetch huge profits for banks
By Jeph Ajobaju, Chief Copy Editor
Transactions worth N114.8 trillion were done through electronic payments between January and April (4M 2022), according to the Nigeria Inter-Bank Settlement Systems (NIBSS) which said the deals were conducted on its Instant Payment Platform (NIP).
This is a rise of 44 per cent in e-payments compared with N79.5 trillion in the first four months of 2021, reflecting a boom in the volume of deals in 4M 2022.
Newly released NIBSS data shows that NIP volume rose to 1.4 billion in the four months, a 4 per cent increase on 999 million in 4M 2021.
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Breakdown
Below is the breakdown of the monthly transactions from January to April 2022, per reporting by Nairametrics:
January
- NIP recorded N26.6 billion transactions, a 43.7 per cent increase year-on-year (YoY) above N18.5 trillion in January 2021.
February
- Deals worth 27.2 billion were sealed on the electronic platform. Compared with February 2021 when N18.3 trillion was recorded, this represented 48.6 per cent growth.
March
- NIP had 31.8 trillion transactions, a 44.5 per cent rise on N22 trillion in March 2021.
April
- The value of transactions stood at N29.2 trillion. It was 41.6 per cent greater than N20.6 trillion in April 2021.
NIP background
NIP is an account-number-based, online-real-time Inter-Bank payment solution developed in 2011 by NIBSS. It is the preferred funds transfer platform in the Nigerian financial industry and it guarantees instant value to the beneficiary.
Banks have over the years exposed their customers to NIP through channels which include internet banking, bank branch, Kiosks, mobile apps, Unstructured Supplementary Service Data (USSD), POS, ATM, according to the NIBBS.
E-business fetches huge profits for banks
Access Bank generated N46.25 billion from e-business in the nine months to September 2021 (9M 2021), leading in the N200 billion shared by FUGAZ and other banks.
FUGAZ is the acronym for Tier-1 banks, the five biggest by market capitalisation – FirstBank, United Bank for Africa (UBA), Guaranty Trust Bank (GTCo), Access Bank, and Zenith Bank.
The N46.25 billion intake of Access Bank was 60.6 per cent higher than N28.8 billion by Q3 2020.
The 12 banks listed on the Nigerian Stock Exchange (NSE) made N200.45 billion from e-business in 9M 2021.
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