The Nigeria Inter-Bank Settlement System (NIBSS) data has disclosed that the payment industry in Nigeria continues to experience rising growth. There has been a steady growth in the first 9 months of 2020 across several e-payments platform.
NIBSS Instant Payment (NIP) noted a 39.4% year/yield and 66.8% y/y growth in transaction value and volume to N105.3tn and 1.3bn. POS transactions recorded a total transaction value and volume growth of 185.7% y/y and 42.7% y/y, which amounted to N6.4tn and 440.9m respectively.
Mobile Interscheme transfers category recorded a remarkable growth with transaction value and volume rise of 311.1% y/y and 341.0% y/y which translates to N1.9tn and 88.2m respectively.
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The high rate of technology payment and cash transfers in Nigeria showed evidence of sustained growth in the volume of e-payment transactions, and value in Nigeria. The rising internet and mobile penetration, in addition to the investment by banks, and other payment-based fintech in payment technology infrastructure, has contributed to the growth rate.
The notable rise in Mobile inter scheme transfers was further enhanced as a result of the pandemic which limited many Nigerians to banking apps and USSD transfer channels for the transfer of funds. With the ease of covid-19 restrictions, there have been recovered NIP transactions and POS
The e-payment industry forecasts significant growth even after the pandemic. Finance Experts stated that ‘the payments industry and the Fintech ecosystem as a whole represent the next growth frontier for Nigeria.’
‘This is already being seen with foreign capital flowing into the sector, for example, Stripe’s recent US$200m acquisition of Nigerian-based payment company, Paystack,’ they noted,
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