Electronic Payment Transactions Increases YoY by 80% to N21.9Trillion

Bukola Olanrewaju January 20, 2021 BUSINESS, TECHNOLOGY Leave a comment

Cashless economy has recorded further boost as the value of electronic payment transactions rose year-on-year (YoY) by N9.7 trillion or 80 percent to N21.9 trillion in 2020 from N12.2 trillion in 2019.

Similarly, the volume of epayment transactions rose YoY by 178.2 million or 98 percent to 359.58 million in 2020 from 181.4 million in 2019.

Analysis of electronic payment data shows that the highest volume of transaction of 264 million was recorded in NIBSS Instant Payment (NIP) channel in 2020.

Also Read:

These electronic channels include cheque truncations, ACH/Nigerian Inter Bank Settlement System (NIBSS) Automated Payment Services (NAPS)/PMS, Automated Teller Machine (ATM), Point of Sale (PoS), Internet (Web), Mobile Money, NIBSS Instant Transfer (NIP), m-Cash, E-BillsPay, Central Pay, and Inter-Bank transactions.

Further analysis shows that the channel with the highest value of transactions of N20 trillion in the year under review was NIP while that with the lowest value of transaction amounting N272 million was Central Pay.

The data also shows that transactions done using NIP, Point of Sale (PoS), Mobile transfer and E-billspay channels had significant increases in volume and value during the period.

ALSO READ: Fitch Forecasts $42bn External Reserves for Nigeria in 2021

The volume of cheque transactions, however, rose by 29 percent to 652,412 in 2020 from 504,728 in 2019 while itsvalue fell by 10 percent to N325 billion in 2020 from N391.6 billion in 2019.

It should be noted that as part of an effort to strengthening the payment system and development of other disruptive technologies relating to financial services, the Central Bank of Nigeria (CBN) has issued fresh guidelines.

“In furtherance of its mandates to, ensure the safety and stability of the Nigerian financial system, promote the use and adoption of electronic payments and foster innovation in the payments system, the Central Bank of Nigeria hereby issues the framework for QR code payments in Nigeria,” the CBN said in one of the documents that detailed the operational relationships among issuers, acquirers, merchants, other financial service providers and customers.