Five years after Nigeria’s Central Bank (CBN) launched its Cash-less Nigeria project, Nigerians are starting to embrace electronic payments. By making Nigerians pay electronically, the bank wants to reduce the amount of physical cash circulating in the economy.
The latest statistics show that the use of Point of Sale (PoS) terminals for payments was catching on last year, with a total transaction volume from January to November 2016 increasing 65% against all of 2015. The value of PoS transactions has doubled between 2014 and 2016. Nigeria’s central bank not only hopes that electronic and online payments will help eliminate the backdrops of frequent use of cash. Handling cash is costly, but there is more to it than that. Going electronic may help expose and curb fraud-related payments easily detectable.
Local entrepreneurs have joined the action. Online transactions Paga, a mobile money operator, reported is has now 5 million customers. Quartz reports that the operator said it handled almost $800 million worth of transactions between July 2015 and July 2016. Several start-ups have explored technology to enable Nigerians make more payments online. Paystack, one of those payments-focused start-ups, recently closed a $1.3 million seed investment round.
Further reading on qz.com