eTranzact, one of Nigeria’s online payment service operators, has revealed that it handled transactions up to the tune of N50 trillion in 2022. The company also stated that it recorded a 99% success rate for its services, guaranteeing that customers stay happy.
The payment service provider made this known at its 19th Annual General Meeting in Lagos. According to CEO Olaniyi Toluwalope, the value of transactions rose from the N31 trillion it generated in 2021. Toluwalope credited technology and his team of specialists that ensured payments get processed immediately.
He also noted that his company’s efficiency helped ensure their service channels suffered little to no downtime. eTranzact’s CEO claimed that the steady growth of the electronic payment sector has led to the growth in yearly transaction volume.
“The volume of electronic transactions peaked at the highest in five years in 2022 with a total value of N387 trillion. The huge growth is premised on the shift of more consumers towards the use of electronic banking channels for financial transactions.”Olaniyi Toluwalope, eTranzact CEO
Over the last few years, Nigeria has encouraged the use of alternative methods for financial transactions. This is in line with the country’s road to a cashless policy. Toluwalope also noted that positive “regulatory policies, a predominately youth population, and the influx of talent and expertise” have contributed to the payment industry’s great run so far.
The place of eTranzact in Nigeria’s evolving e-payments space
Nigeria continues to gravitate to electronic payments and remittances, following a path already laid by developed countries. The fact that more Nigerians own smartphones than before can’t be easily ignored. He also said that agency banking has helped the system grow.
Toluwalope foresees the growth of the payment segment, adding that telecom operators have a huge role to play. He expects them to leverage their respective network of customers to begin offering financial services. Interestingly, that’s already happening.
MTN has MOMO, Airtel owns Smart Cash, 9mobile has 9PSB, and Glo has Money Master. These payment service banks, alongside fintech and internet banking solutions, are expected to drive financial inclusion in the country.
Aside from announcing e-Tranzact’s transaction volume, the CEO also revealed future business moves.
“We are poised and committed to be a regional leader in the medium term and in the long term, a global leader in the electronic and mobile payment industry. To this end, we will continue to deliver secure, cost-effective and innovative electronic and mobile payment services that are compliant with globally recognized standards,” he stated.
Technology’s role in Nigeria’s financial inclusion drive
Early this year, Nigeria’s overreliance on cash was on display following the currency redesign policy. Although its impacts on transactions will be hard to forget, it’s worth noting that it helped PalmPay, Opay, Kuda, and the like to increase their customer base. The situation also spurred the Central Bank of Nigeria to run campaigns for its digital currency, eNaira.
However, factors like low internet penetration in rural areas and limited digital literacy may impact the country’s plans for a cashless future. Aside from discouraging the use of cash, Nigeria should also focus on increasing the number of internet users and run constant sensitization programs. Telcos should also expand their infrastructure to improve service delivery for all consumers including those on the fading 2G and 3G network bands.
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