e-payments increase 40.9% YoY
By Jeph Ajobaju, Chief Copy Editor
Growth remained strong across various e-payment channels in the first seven months of the year ended July (7M 2022), according to the latest data released by the Nigeria Inter-Bank Settlement System (NIBSS).
NIBSS Instant Payment (NIP) transactions notched 40.9 per cent year-on-year (YoY) transaction value increase to N205.5 trillion and 46.5 per cent YoY transaction volume rise to N2.7 billion.
Total point-of-sale (POS) transaction value grew 29.3 per cent YoY to N4.6 trillion and total transaction volume 25.0 per cent to 679.8 million.
According to the NIBSS, the highest growth was in the mobile transactions category where transaction value was more than twice as tall, beating that of 7M 2021 by 159.0 per cent YoY to N9.3 trillion.
Transaction volume was up 122.4 YoY to 300.6 million.
The pandemic, which accelerated the adoption of digital payments, has paved the way for the continued growth in e-payment transaction volume and value in Nigeria, reflecting the enduring shift away from cash.
The growth has also been driven by increasing internet and mobile penetration as well as by investment by banks and other payment-based fintech companies in payment technology infrastructure.
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Rise in agency banking
The growth in POS transactions shows increase in agency banking services, and the newly launched e-Naira – though still at the nascent stage – if fully integrated into e-payment channels, will see significant growth, writes Nairametrics.
Despite the growth, the Nigerian e-payments industry is still scratching the surface of its potential and poised for further growth as alternative payment channels evolve.
The country has seen the development of the Nigeria Quick Response (NQR) code by the NIBSS and, more players are keying into facilitating contactless payments.
Favourable demographics and regulatory support continue to inform expectation of accelerated growth of the fintech industry in Nigeria.
This expectation has received much attention from investors, which has led to significant investments as existing players look to position for future growth.