Ugo Aliogo
A report by Unlimint has stated that only about 5 percent of Micro Small Medium Scale Enterprises (MSMEs) have their transactions digitalised.
A statement by the group said hassles such as hidden charges and complex processes are discouraging for many small businesses.
The statement also noted that small businesses need all their resources at their disposal and are incapable of coping with local trade hassles such as transaction fees, bank errors, or non-contextual debit alerts for example which are disincentives within this demographic, especially in Nigeria.
The statement remarked that with the present economic realities, it would be grossly inefficient for small scale businesses to adopt multiple or cumbersome payment platforms, all in a bid to accept alternative payment methods, or engage in smooth cross-border trade.
According to the statement, “There is a need to help these businesses integrate into these new multiple payment methods through an all-encompassing payments platform, with a single integration; this will enable these businesses to securely receive payments from anyone and anywhere across the world, without limits. Such a solution would aid in driving commercial improvement and economic growth which is crucial for Africa’s future.
“Africa, however, still has a long way to go in terms of accepting the array of payment options available across the world. This is because the continent is still faced with the challenge of navigating around non-cash payment options, especially because most of its businesses and activities are cash centric. More so, the accelerated influx of new financial payment methods is difficult to keep up with and integrate into the available payment aggregators used on e-commerce platforms. And the unavailability of a simplified and efficient payments platform that can help businesses to accept these alternative payment methods has further hindered an ease of adoption.
“The popular saying that ‘variety is the spice of life’ is no longer limited to delicious food, travel, or any other form of exciting experiences, but has now come to include the sphere of making and receiving payments. Welcome to an era of convenience where thousands of options to pay and be paid are available, due to the ever-evolving frontiers of financial technology. From digital wallets to credit/debit cards, cryptocurrencies, or even potentially the e-Rupi or e-Naira, people, and businesses all over the world are now better positioned to transact any way they want. And as such, it is pertinent for individuals, and enterprises to key into these digital payment transformations, to be able to trade effectively in the global market.”
