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3rd Party Touch-Based Payment Service to Increase 150%- Deloitte

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Deloitte Global has predicted that in 2016, the number of individuals who use a third party touch-based payment service to make a purchase on their mobile devices (smartphones and tablets) should increase 150 percent, to reach 50 million regular users.

Executive summary of the document titled, “Technology, Media & Telecommunications (TMT) Predictions 2016”, obtained by Nigeria CommunicationsWeek described ‘Touch Commerce’ as enables a customer to make a secure first-time or subsequent payment on any merchant’s website or app without having to provide registration or log-in details either to the merchant or to the payment service.

Authorizing the transaction on a mobile device simply requires the application of a fingerprint or a few touches of a screen, significantly reducing the time taken from browsing to transaction from tens of seconds or even minutes to mere seconds.

Touch commerce, according to Deloitte, enables retailers to exploit shoppers’ increasing use of mobile devices to browse retail sites and apps.

“Transactions on sites and apps remain scarce, with laborious payment processes often to blame. Indeed cart abandonment in mobile commerce can be as high as 80 percent. Easier checkout has been identified as a key factor/key requirement for increased mobile buying.

There are likely to be two principal types of third-party touch-based mobile payment services in 2016. One is linked to the device’s operating system (OS). Shopping applications can use existing information associated with the OS, including payment card details and home address”.

Deloitte Global expects this category should represent the majority of touch-based payments made in 2016: there are billions of smartphones that have payment card and home address information associated with them.

Additionally, the base of fingerprint reader-equipped devices is steadily rising, with more than 450 million forecast to ship this year, adding to the existing base of hundreds of millions’.

“The second type of third-party touch-based mobile payment service is linked to existing payment service providers.

Prior to being able to make purchases by one or two touches of the screen, the user would need to have opened an account with the payment provider and elected to stay logged in for future purchases.

“Once this feature is enabled, the user simply has to press buy and confirm buttons. Confirmation can be via a fingerprint with some devices.

“These payment services enable retailers to outsource mobile transactions to third parties, and by so doing, convert payment from a frustrating to a friction-free experience.

“One merchant reported that the checkout process via their legacy app required 103 seconds for customers to type in their full credit card and shipping information; third-party touch payment reduced this to just 17 seconds.

“Other payment services may emerge soon. For example, some large retailers could enable their customers to use pre-stored payment data to validate purchases made on other retailers’ apps.

“Today’s consumers are constantly connected to their smartphones, from the early hours in the morning to late at night, when at work, while spending time with family and friends or while commuting. Touch commerce provides opportunities for converting browsing into purchases with a simplified payment process,” the document reads.

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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