Indigenous payment software Remita is developing a new economy where consumers will be more financially savvy and inclusive, fast-tracking Nigeria’s inclusion in the group of nations leveraging digital finance for growth, FinTech player SystemSpecs has said.
In a recent chat with newsmen, John Obaro, SystemSpecs Managing Director said the software was more than just a regular e-payment solution but also a tool for economic growth, helping the government, individuals and organisations to track their finances holistically and make more informed financial decisions.
Obaro projected that tomorrow’s economy will be built on digital finance as the world looks for alternative and faster ways to achieve inclusive growth, empowering individuals, businesses and governments to carry out cheaper and more effective transactions.
In its September 2016 report, McKinsey forecasts that “widespread adoption and use of digital finance could increase the Gross Domestic Products (GDP) of all emerging economies by 6 percent, or a total of $3.7 trillion, by 2025.” It says the additional GDP will generate 95 million new jobs across all sectors of the economy, provide access to 1.6 billion unbanked people, while governments could gain $110 billion yearly by reducing leakages in public spending and tax collection.
Obaro argued that Remita is already aligned with this objective, adding that its functionality is not restricted to powering the Treasury Single Account (TSA), but is tailored to individuals as well. He said: “Payment of fees, taxes, levies and even school fees is very often restricted to 9 to 5, five days a week. But with Remita, these payments can be made anytime of the day or night. Needless to say, Remita eliminates long queues in banking halls and missed payment deadlines which oftentimes attract huge surcharges. This has enormous potential for financial inclusion and economic growth.”
Obaro observed that the Nigerian FinTech market is saturated with all manner of software and applications that claim to facilitate electronic payments, but Remita goes the extra mile with national and individual functionalities. “Remita has not only instilled a culture of probity in our public sector but on a personal level as well. When individuals see in real time their account balances across banks, they tend to make more informed financial and purchasing decisions besides the convenience of not downloading multiple applications for payment.”
Typically, individuals are wary of electronic transactions due to trust and security issues. Customers oftentimes complain that their transfers do not reach beneficiaries but their accounts are debited nonetheless. “We recognise that, which is why Remita offers additional security layers such as hard token, soft token, biometric token, intelligent pattern tracking and more,” Obaro added.
Launched in 2006, Remita helps the government, corporate organisations, SMEs and individuals make and receive payments easily. It aggregates multiple bank accounts, giving customers the ability to see in real time their account balances across banks on a single screen. Remita is also the payment gateway that powers the Treasury Single Account (TSA), which as of Q3 2016 had enabled the government take full control of N4.3 trillion of its cash assets.
JUMOKE AKIYODE
