Visa, one of the electronic payment cards scheme in the country, has recorded transaction volume to the tune of N1.12trillion ($7billion) last year, Nigeria CommunicationsWeek can now reveal.
Visa entered into the epayment sector of the economy through the acquisition of 70 percent stake in ValuCard now Unified Payments which was licensed by Visa to process its cards issued by Banks in Nigeria and West Africa.
Visa was the first card scheme to launch EuroPay Mastercard and Visa (EMV) certified chip and pin card in the country before Cenetral Bank of Nigeria (CBN) mandated others to adopt it as a way of reducing fraud in the system.
Nigeria CommunicationsWeek gathered that since the Unified Payments began processing of Visa cards issued by Nigerian Banks it has not recorded any fraud in its platform and has grown by 70% year on year in terms of transactions.
Ade Ashaye, Country Manager for Visa West Africa, said that financial institutions in the country have issued a little above 5 million Visa cards by the end of last year.
He added that innovation is key to Visa’s growth, and through investments in mobile technology, Visa provides the underlying platform for a number of the licensed mobile money operators in Nigeria.
He said Visa plans to introduce in the latest mobile money features in Nigeria to ensure local mobile money customers can participate in the newest payments ecosystem.
Electronic payments are critical to development of a strong, modern economy. Visa products can promote transparency and accountability, reduce transaction costs and decrease the size of the gray or informal economy, all of which helps to stimulate economic growth and employment. A growing acceptance infrastructure also gives merchants access to millions of consumers worldwide, guarantees payment for goods and services, and enhances the point-of-sale experience for their customers.
The stability of a banking system grows with each new consumer achieving financial inclusion. This in turn has a positive and lasting effect on the economy, social reform and government efficiency. “By driving both card acceptance and card issuance through our partner banks, we hope to underpin Nigeria’s efforts to achieve these goals,” concluded Ashaye.
Nigeria CommunicationsWeek investigations revealed that the success recorded by Visa in Nigeria is as a result of major banks with large customer base that issue mostly Visa cards, they include, Zenith Bank, Standard Chartered, UBA, Diamond, Access and Fidelity.