e-payments rise on greater adoption of mobile money
By Jeph Ajobaju, Chief Copy Editor
Electronic payments grew 387.19 per cent from N189.50 billion between January and April 2019 (4M 2019) to N923.24 billion in 4M 2022, according to the Nigeria Inter-Bank Settlement System (NIBSS).
“e-BillsPay is an electronic bill payment platform that facilitates the payment of Bills, Fees, Levies, Premiums, and Subscriptions etc. by the banking public through electronic payment channels provided and managed by Banks,” NIBSS explained.
NIBSS data shows a surge in e-bills payment during the pandemic. Up to N189.50 billion was paid through e-BillPay channels in 4M 2019, N363.87 billion (4M 2020), N716.99 billion (4M 2021), and N923.24 billion (4M 2022).
e-BillsPay touch points include bank branches, internet banking, mobile banking, USSD, and agent networks.
Association of Mobile Money Agents in Nigeria National President Victor Olojo explained that mobile usage is driving the increase in e-BillsPay.
“Primarily, the increase in mobile usage and mobile payment has helped very aggressively in e-bills payment as people now have access to mobile phones and are now able to do payments themselves,” he said.
“Secondly, financial inclusion; more people have access to finance and that way they can link their accounts to their mobile numbers to carry out transactions.
“Also, a bulk of e-bills payments have to do with utilities, PayTV, and power. More Nigerians have been able to embrace mobile banking.”
In Olojo’s view, the surge is likely to continue because it entails ease of payment, and with an increase in demographic expansion, more people now have access to this form of payment.
Telecom companies are also making it easy for Nigerians to carry out transactions coupled with the rise of fintech.
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Covid fuels e-payment growth
“COVID contributed to the growth of electronic payment. It taught us many ways of doing things differently. For things we thought needed a second party to carry out, COVID has shown us that we can do them by ourselves,” Olojo added, per The PUNCH.
“COVID helped the adoption of this channel. Many people would rather before now go to the bank to make some payments, but these days people use e-channels. States have also integrated their payments, statutory payments, e-payments, and payments to local governments.
“Both the private sector and public sector have accepted this payment channel. It is a payment channel that will continue to increase.”
A source in the telecom industry who did not want to be named said: “When people make payments, they don’t have to wait for a long while before it reflects. People can pay on the go and get the service immediately.
“Convenience and speed are the two key drivers for it. Now that we are talking about financial inclusion with PSBs and other mobile money where in areas without access to banks people can use phones to carry out financial transactions.
“Convenience and speed are what is driving this. Mobile is driving this adoption fast. As I have said, mobile enables on-the-go payment. It is not location-based. Mobile is the way to go, mobile is what is driving adoption.”