Instant Payments, PoS Deals Hit N95.89trn In Eight Months
The value of transactions via the two digital payment platforms – Nigeria Interbank Settlement System Instant payment system and Point of Sales terminals – across the country rose to N95.89tn from January to August this year.
The two platforms recorded a 39 per cent growth in value of payments when compared to an aggregate of N69.01tn in the corresponding period in 2019.
A breakdown of data obtained from Nigeria Interbank Settlement System showed that NIP grossed N89.9tn from January to August this year while PoS deals were worth N5.99tn during the same period.
In the first eight months of 2019, total NIP transactions amounted to N67.05tn while PoS payments were valued at N1.96tn during the same period.
As banks, financial technology firms and telecommunications companies intensify efforts to deepen financial inclusion, the volume of instant money transfers also grew by 63 per cent from 702.11 million deals recorded in the first five months of 2019 to 1,144.7 million transfers carried out by banks in the corresponding period this year.
In January this year, instant money transfers valued at N10.3tn were reported by NIBSS, compared N8.11tn in the same month in 2019.
In the following month, the value of NIP transactions was N9.97tn compared N7.47tn NIP deals recorded in February 2019.
The banks grossed NIP transactions valued at N10.97tn in March 2020 as against N8.58tn in the same month last year.
NIBSS statistics showed that in April this year when Lagos, Ogun and Abuja, among other states, were on total lockdown, the value of instant transfers dropped to N7.01tn compared with N8.28tn in April 2019.
In May this year, the value of the transfers increased to N10.41tn as against N9.04tn in the same period of 2019.
The value of NIP deals in June 2020 was valued at N12.26tn compared with N7.87tn recorded in the corresponding period last year.
In the following month, instant transfers valued at N14.34tn were recorded as against N8.97tn in July 2019.
August saw the value of NIP peak at N14.65tn as against N8.73tn in the same month last year.
Analysis of the NIBSS data showed that the value of Point of Sales transactions also grew by 206 per cent to reach N5.99tn from January to August 2020 as against a total of N1.96tn recorded in the first eight months of 2019.
According to NIBSS data, the total value of PoS payment in January 2020 was N313.43bn in a total of 41.31 million deals compared with N222.92bn in January 2019.
Mobile money agents and merchants grossed PoS deals worth N326.03bn in February in a total of 46.07 million transactions as against payments valued at N193.43bn in February 2019.
In March 2020, the value of PoS transactions rose to N368.86bn as against N217.457 in March last year.
In the following month when three major cities were on lockdown, the value of PoS transactions was N272.05bn compared with N246.1bn in the corresponding period of 2019.
In May 2020, when the lockdown was slightly eased, the value of payments via PoS increased to N358.1bn as against N257.73bn in the same period last year.
June saw the value of transactions on PoS terminals reach a peak of N3.55tn as against N246bn transactions carried out in June 2019.
The value of PoS transactions in July amounted to N416.73bn compared with transactions valued at N279.48bn recorded in July 2019.
Stakeholders grossed PoS deals worth N386.35bn in August 2020 as against N294.04bn in the same month last year.
As the drive to reach 80 per cent financial inclusion target by 2020 given by the Central Bank of Nigeria intensifies, the apex bank issued three Payment Service Banks their licences after meeting specific requirements.
The three digital banks – Hope PSB, Moneymasters and 9PSB – are expected to extend the reach of financial services to remote areas where banking services are not available.