Data from a new report series from the NBS, produced in collaboration with the CBN, reveal that 462 million transactions valued at N29trn were recorded on electronic payment channels in Q4 2017.

As expected, ATM transactions dominated with a volume of 240 million. Internet subscriptions directly correlated with electronic transactions stood at 98 million in December 2017, according to the Nigerian Communications Commission. This translates into a penetration of 53%.

Based on data from the Nigeria Inter-bank Settlement System (NIBSS), total active bank accounts as at February 2017 stood at 67 million, pointing to 36% exposure (of the country’s population) to electronic payment transactions. Financial inclusion is still far from its optimal level.

The volume of point-of-sale (PoS) transactions shows the impact of the cashless policy on the economy. The NBS data show that 47 million PoS transactions were recorded in Q4 2017, representing increases of 20% q/q and 113% y/y.

Meanwhile, mobile payments recorded 12 million transactions valued at N307bn (US$1bn) in Q4. The value of transactions grew by just 30% y/y and accounted for only 1.1% of total electronic transactions.

Mobile banking remains hugely untapped. Indeed, better synergy between telecommunication operators and banks would boost e-transactions. Kenya is the leader in this field through M-Pesa and other platforms. Ghana is worth a mention, too: its central bank has reported total mobile transactions in 2017 (12 months) of GHS156bn (US$35.9bn), compared with KES4.6trn (US$45.3bn) for the 12 months to June 2017.


SOURCE: https://brandspurng.com/nigeria-mobile-payments-still-hugely-untapped/

interesting

This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments even though I can use my bank issued cards to make payments through my mobile, it does not equate to Mobile Money ...but they won't allow innovators to tap into this rather they would be giving all sort of requirements for mobile money license with ridiculous fees

postbox:
Data from a new report series from the NBS, produced in collaboration with the CBN, reveal that 462 million transactions valued at N29trn were recorded on electronic payment channels in Q4 2017.

As expected, ATM transactions dominated with a volume of 240 million. Internet subscriptions directly correlated with electronic transactions stood at 98 million in December 2017, according to the Nigerian Communications Commission. This translates into a penetration of 53%.

Based on data from the Nigeria Inter-bank Settlement System (NIBSS), total active bank accounts as at February 2017 stood at 67 million, pointing to 36% exposure (of the country’s population) to electronic payment transactions. Financial inclusion is still far from its optimal level.

The volume of point-of-sale (PoS) transactions shows the impact of the cashless policy on the economy. The NBS data show that 47 million PoS transactions were recorded in Q4 2017, representing increases of 20% q/q and 113% y/y.

Meanwhile, mobile payments recorded 12 million transactions valued at N307bn (US$1bn) in Q4. The value of transactions grew by just 30% y/y and accounted for only 1.1% of total electronic transactions.

Mobile banking remains hugely untapped. Indeed, better synergy between telecommunication operators and banks would boost e-transactions. Kenya is the leader in this field through M-Pesa and other platforms. Ghana is worth a mention, too: its central bank has reported total mobile transactions in 2017 (12 months) of GHS156bn (US$35.9bn), compared with KES4.6trn (US$45.3bn) for the 12 months to June 2017.


SOURCE: https://brandspurng.com/nigeria-mobile-payments-still-hugely-untapped/

Na wa o...

The fact that the Central Bank is financing research in this area shows some improvements may be in the offing.

Okay

What platform can we use to tap it?

It's only in Nigeria that mobile banking is useless maka ndi thief

Please see my signature

How do I get started tapping into this opportunity of mobile payment when investors are not their to help finance your project
Drop me 25million naira and see me develop my secret mobile payment solution and take it to market in less than six month

Interesting

How many percentage of your population is educated?
I understand Nigeria includes the same Vagabonds unleashing mayhem all over Southern and Middle belt Nigeria.

MMM made it popular na, chai mavrodi don die with my money.

bigtt76:
This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments even though I can use my bank issued cards to make payments through my mobile, it does not equate to Mobile Money ...but they won't allow innovators to tap into this rather they would be giving all sort of requirements for mobile money license with ridiculous fees

They are really confused! Mobile Money is really independent of Banks just as we have the Mpesa here in Kenya . I receive international money transfers straight to my phone number and I go to the kiosk beside me selling grocery to cash the money...no bank involved.

bigtt76:
This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments

What exactly do you mean?
Mobile banking, mobile money...
What is the difference aside being able to carry out transactions from your mobile phone?

bigtt76:
This is because CBN is very confused as to what make up 'Mobile Payments' ....Mobile Money is not the same as Mobile Payments even though I can use my bank issued cards to make payments through my mobile, it does not equate to Mobile Money ...but they won't allow innovators to tap into this rather they would be giving all sort of requirements for mobile money license with ridiculous fees

so what is the mobile money ? I think mobile money is also a source of making payment in mobility hence the referral mobile payment, this is irrespective of whether cards are used or not

Pavore9:


They are really confused! Mobile Money is really independent of Banks just as we have the Mpesa here in Kenya . I receive international money transfers straight to my phone number and I go to the kiosk beside me selling grocery to cash the money...no bank involved.

but there was payment involved, you see the term money does not only mean cash, money is anything exchanged for goods and services, whether it goes through the bank or not. Is very right for CBN to term mobile money as mobile payment

The CBN messed up the mobile payment space years ago when it started interfering and shifting the goal post every other month till investors lost interest because they kept losing their investment every other week to a CBN mobile payment policy direction change .

I remember how one bank tried pay with capture, hahahaha it was DOA with all d money spent on adverts

HAH:
but there was payment involved, you see the term money does not only mean cash, money is anything exchanged for goods and services, whether it goes through the bank or not. Is very right for CBN to term mobile money as mobile payment

But our mobile payment is still tied to Banks as against the wider acknowledgement of what mobile money is known as. I need to comfortably send money to your phone number and you can cash it from an agent around you and without cashing it, use it to make payment for goods and services or even transfer it internationally......no bank is involved nor internet connection. Can you receive Western union or Moneygram transfer straight to your Nigerian phone number and go to the shop beside you and cash it?

Nigerians are skeptical about mobile platforms, at least many Nigerians. Especially when you have experienced transferring money to a wrong person or you money gets trapped in settlement.

Anyway, implementing the cashless system will further push people to buy in.

Especially #Octopus

Mobile payments basically is you having access to a bank issued debit/credit, other stored value cards or bank's mobile apps to process payments on the go. Here you have your funds stored and managed by your banks. With Mobile Money, this is actually monies semi-outside the banking systems. It is stored in wallets created on your mobile SIM cards by the telecos. With this funds, you can make payments to other users of the same system.

Chuks9000:


What exactly do you mean?
Mobile banking, mobile money...
What is the difference aside being able to carry out transactions from your mobile phone?

OboOlora:
I remember how one bank tried pay with capture, hahahaha it was DOA with all d money spent on adverts

PWC is like an advanced form of POS transaction.
Mobile banking/money is like a simplified form of branch banking. But this time, it uses the very basic form of tech available to the poorest. That is, USSD. Also, it is suppose to eradicate branch involvement (replacing it with bank or FinTech agents).
Just a form of banking that allows Iya Basira make or receive payments with her Nokia torchligh in a remote corner of the country.

bigtt76:
Mobile payments basically is you having access to a bank issued debit/credit, other stored value cards or bank's mobile apps to process payments on the go. Here you have your funds stored and managed by your banks. With Mobile Money, this is actually monies semi-outside the banking systems. It is stored in wallets created on your mobile SIM cards by the telecos. With this funds, you can make payments to other users of the same system.

why has mobile money failed in Nigeria? Like it worked well in kenya a la M-PESA but Naija na another case, successful models elsewhere just don't work here

Pavore9:


But our mobile payment is still tied to Banks as against the wider acknowledgement of what mobile money is known as. I need to comfortably send money to your phone number and you can cash it from an agent around you and without cashing it, use it to make payment for goods and services or even transfer it internationally......no bank is involved nor internet connection. Can you receive Western union or Moneygram transfer straight to your Nigerian phone number and go to the shop beside you and cash it?

you are right, this is one of the proposals of the mobile companies in Nigeria to have a mobile payment system like mpesa in Nigeria but it was blocked by the banks thorough vthe government, their fear is if this is allowed telecom companies will take one of the functions of banks, the CBN insisted mobile payment most pass through nibss . personally I believe telecom companies should start mobile payment without banks involve but should be regulated by nibss as well, may be an arm should be created within nibss to accommodate mobile money through telecom companies.

What are the charges associated with mpesa if I may ask?

talk2hb1:
How do I get started tapping into this opportunity of mobile payment when investors are not their to help finance your project
Drop me 25million naira and see me develop my secret mobile payment solution and take it to market in less than six month

All these secret solutions are usually full of shit.

bigtt76:
Mobile payments basically is you having access to a bank issued debit/credit, other stored value cards or bank's mobile apps to process payments on the go. Here you have your funds stored and managed by your banks. With Mobile Money, this is actually monies semi-outside the banking systems. It is stored in wallets created on your mobile SIM cards by the telecos. With this funds, you can make payments to other users of the same system.

Ok. Here in Naija, the Telcos are required to work in partnerships with a bank (for the protection of public funds).
A lot would happen if the Telcos are allowed to manage monies outside the BOFIA.
.: the wallets you mentioned are either managed by the banks or by the FinTechs in conjunction with their banks. Anywhichway, your mobile number can be a wallet with any of the systems of your choice.
The truth is that, we are yet to embrace mobile money. Maybe because of lack of trust on our part as end users or because the institutions involved are yet to make it appealing enough for it to trend.

Ever since the airtime i bought online from my uba mobilebank app refused to show after seeing deductions on my account 2 consecutive times baba... Mans given up on this online banking stuffs till it gets more reliable like in the states

I got a better understanding of mobile money after reading this thread.