E-payments Ecosystem To Drive Economy Growth Post COVID-19

The COVID-19 pandemic has brought to the fore the vital role of e-payment to the development of any economy, including Nigeria.

The payment sector in the country has continued to demonstrate its promising growth with the recent data from the Nigeria Inter-Bank Settlement System (NIBSS) showing solid growth across the various e-payments spectrum from January – May 2020.

NIBSS Instant Payment (NIP) transactions recorded a 17.3 per cent y/y and 47.7 per cent  y/y growth in transaction value and volume to N48.7 trillion and 615.3 million respectively.

For POS transactions, total transaction value and volume grew 44.0 per cent y/y and 50.0 per cent y/y respectively to N1.6 trillion and 228.9 million respectively.

The Mobile transactions category recorded the most impressive on volume and value grew 567.5 per cent y/y and 364.7 per cent y/y to 41.1 million and N853.7 billion respectively.

The growth in e-payments transaction volume and value in Nigeria are a result  of increased adoption of technology in payments and cash transfers by the Nigerian populace, especially during this pandemic.

Also many analysts say slashing of the cost of mobile and internet transfers by the central Bank of Nigeria, CBN had some impact on increased usage of these platforms.

Going forward, analysts at Nairametrics say they expect the e-payments industry to continue to record significant growth even beyond the pandemic as many of the new methods of transacting will be sustained.

“In our opinion, the e-payments sector of the fintech ecosystem is expected to serve as the growth frontier of the new decade in Nigeria as highlighted in our 2020 Nigeria Fintech Sector Report “, the analysts submit.