Electronic payment channels are expected to bolster the Christmas and New Year spending this year and build on the consistent growth recorded through the first three quarters of the year, despite diminishing purchasing power of many individuals.
Data on all payment channels for Q3 2016 as released by the Nigerian Bureau of Statistics showed a total value of N18.1 trillion, which excluding cheque based transactions leaves N16.7 trillion in payments made through NEFT, ATM, POS, Internet, Mobile payments, and NIP.
A sizeable number of retails payments to be made this yuletide are expected to be carried out through electronic means, such as POS transactions which have seen growing volumes over the last three quarters. POS transactions have grown from a value of N145 billion in Q1 2016, to N163 billion in Q2, and N189 billion in Q3 2016.
Q4 with the multitude of special offers and discounts is expected to record even higher volumes (and value) of transactions from revelers of all categories across the country. At the end of 2015, there were 129,322 registered POS devices with 106,921 fully deployed for use, a figure expected to have increased this year.
ATM transactions are also expected to be significantly impacted. In Q1 2016, ATM transactions were worth N1.07 trillion, N1.13 trillion in Q2 2016, and also grew to N1.25 trillion in Q3 2016. The value for ATM transactions, in view of the several offerings available this yuletide will also go up significantly.
This also puts up security concerns for many people who may be using their cards for different transactions.
“This is a peak period for fraudulent people to carry out their nefarious activities,” said Kalu Udonsi, an IT Auditor with Union bank, and Assistant General Secretary, Information Security Society of Africa- Nigeria (ISSAN).
“One of the ways customers are advised to ensure personal security is to use (as much as possible) ATMs in populated areas, avoiding those in isolated areas, especially at night when it is not properly lit,” Udonsi said.
He also emphasized that for those who will have preference for online transactions, they should avoid making payments on websites without “HTTPS” in the address bar, highlighted in green and with a padlock icon.
Alternatives which can also be explored include “Cardless transactions” where individuals can subsequently move around without their cards and still be able to make cash withdrawals.
One of such is Verve World which enables cardholders to store all their payment options and to carry out everyday transactions without physically using their cards.
Users are able to store payment instruments from all major card brands in Nigeria. In addition to debit, credit and prepaid cards, and Verve eCash, bank accounts can also be added to the app, available for download online.
Cardless transactions are carried out through ‘Paycode’, a unique one-time code valid for 24 hours, which can be used to withdraw cash from an ATM machine without a card. The Verve Paycode can then be sent to a loved one or friend to withdraw a pre-set amount of money from most ATMs in the country. The service opens a new range of possibilities for users and also offers a new level of security as cardholders can still carry out regular transactions as usual without the need to move around with a physical wallet.
Other banks have their different cardless transaction methods, including Guaranty Trust bank which has what is a called “cash-out from an account to ATM”. Account owners can initiate cash out request from their phones, indicating amount to be withdrawn through any ATM using Fund Access Code for the cardless withdrawal option.
CALEB OJEWALE
