Nigeria’s modern globalised landscape dictates that all aspects of the business transaction process must be seamless and effective, which is a certain advantage of mobile payments and transfers over conventional banking methods.
Mobile payments are convenient for users because they take advantage of technology that is always with them: their mobile phones.
Today’s world sees customers discarding credit cards in favour of mobile phones. Mobile payments are also convenient for sellers: set-up is quick and simple and mobility allows sellers to accept payments away from their primary business locations.
Rather than financing through cheques, which would have been physically deposited at a local branch of their bank, fetswallet combats these cumbersome barriers by providing a digital solution.
Accessibility and real time control of your finances is an integral aspect of the mobile banking’s appeal and with 46.1 per cent of Nigeria’s population currently with access to the Internet and smartphone penetration reaching 30 per cent, the ability of individuals to remotely access their finances is growing at an ever-increasing rate. This has been compounded by the smartphone market reaching maturity and thus driving down the prices of smartphones, which has in turn enabled a greater population to reap the benefits of this exciting technology.
Despite the cheaper smart phone options available and the presence of an internet connection becoming the norm, there are still a vast number of individuals who are not able to enjoy these benefits. Although this is less likely to be an issue within the large scale corporate environment, it is important that all stakeholders are accounted for. In an industry such as agriculture, where the sourcing of raw materials is a vital aspect of the value chain, there is a greater emphasis on distributors being able to function within a rural setting. This is where fets truly comes into its own in comparison to other e-payment and mobile banking solutions
In Nigeria, mobile payment has become a very acceptable payment medium because of the nature of the economy. As consumers become more comfortable with the technology, analysts expect more money to flow into mobile payment solutions. Mobile payments will provide entrepreneurs with many payment options and give businesses the customised, flexible solutions they need to make payment processing simple. The greatest benefits for vendors will come from how seamlessly the mobile transaction element is integrated into the overall shopping experience.
Transitioning to a cashless society in Nigeria will promote financial intermediation, financial inclusion, minimise revenue leakages and thus increase internally generated revenue (IGR) and reduce incidences of robbery. It will also reduce the amount of cash payment while encouraging electronic payments.
Bank transfers are a method of payments for distributors in FMCG environments and are widely used throughout a number of organisations. However, this raises an issue when it comes to the efficiency and security of the payment process. In Nigeria alone, it is estimated that there are currently 59 million adult Nigerians and 70 per cent of rural Nigeria that do not have access to banking or a formal financial institution. Mobile payment services are able to vastly reduce the impact of an individual’s lack of access to a financial institution and fets is able provide this benefit and also takes this one step further. As opposed to other e-payment services requiring the individual to possess a bank account from a banking institution, fets offers the unique advantage of branchless banking. In an environment where access to financial services bodies can be limited to some, fets has been able to provide an innovative financial solution that appeal to people of all backgrounds.
It is not in doubt that statistics have shown that majority of Nigerians even the literates are unbanked, with mobile payment the number of the unbanked will reduce drastically. Mobile payment optimisation isn’t just something to consider any more – it’s a necessity for companies that want to thrive in a fast-paced, digital marketplace. Mobile payments can deliver substantial customer engagement and loyalty benefits when implemented effectively.
Ultimately, we are seeing a transition occurring as we are moving our focus from a cash oriented society to a ‘cashless Nigeria’. This is evident with the profusion of mobile payment service providers becoming available within Nigeria and Africa as a whole. Naturally, as services become increasingly digitised there is an increased prominence placed upon security. Due to the dynamic and fast paced nature of today’s corporate environment, it is imperative that businesses have access to fast, efficient and secure payment methods that enable them to capitalise upon business opportunities. fets encapsulates these needs perfectly and as a result, was recently awarded with the honour of being the most trusted mobile payment company in Africa. With major clients operating in the banking sector and telecommunications as well as service providers and distributors, it is clear to see why fets is a leading player in Africa’s fintech revolution.
Odunowo, is Managing Director of Funds and Electronic Transfer Solutions Limited (fets)