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Connectivity Problem Tops Challenges of PoS Usuage

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Telecommunications network connectivity difficulties account for 58.5% of challenges merchants face in Point of Sale (PoS) transactions according to a field market research sponsored by Nigeria Inter-Bank Settlement System (NIBSS).

Samuel Oluyemi, head, Business Development, NIBBS, who disclosed this at this year’s Card Expo going on in Lagos, said that the field market research main goal is to provide to NIBSS, as Payments Terminal Service Aggregator for the industry (PTSA), a clear guidance on the improvement areas for NIBSS services, as well as to support other stakeholder in the Nigerian Payment System, how to achieve increased volumes of transactions on PoS Terminals in Nigeria.

Other challenges include transactions charges 47.2%, customer insistence to pay in cash 31.3%, transactions often rejected account for 29.1%, card reading difficulties 27.4% and customers’ do not have cards 26.5%.

He noted that the market research was conducted by Financial Derivatives Company Limited in October, 2012 and covered four different areas of Lagos namely, Lagos, Yaba, Ikeja and Badagry.

The Company administered a total of 6,776 questionnaires 3,562 to merchants with PoS, 1,627 to merchants without PoS and 1,587 to consumers.

“Although there is increasing effort to deploy PoS to Lagos’ merchants, it is not fully accepted as 26.8% of merchants still do not accept PoS payments.

The research further revealed that 40% of the merchants that still does not accept payments with card using the PoS are merchants that typically have facilities above the common standard in Nigeria, e.g. restaurants and hospitals.

Furthermore, from these merchants 21%, irrespective of their activity, are located in shopping malls which also provide better infrastructures than usual.

Additionally, almost all these merchants are accepting payments in cash which is 98%, while the cheques are the second most accepted mean of payment representing 36%.

The report also revealed reasons why merchants still not having a PoS, these include, fear of default/fraud, easy access to cash, Bank refusal to deploy terminal among others.

He added that, there are some technical difficulties to solve but also the preference of cash and the lack of confidence in PoS network, as well as price sensitivity are still major constraints to PoS adoption.

The report concluded that, “nonetheless, the consumers understand the PoS and its value, as more than 70% already would recommend its usage as a mean of payment to other people”.

It would be recalled that CBN had issued guideline on PoS card acceptance services aimed at increasing transactions through the device.

According to the guideline, acquirers were mandated to handover to CBN licensed Payments Terminal Service Providers (PTSP) among who are Unified payments Plc, Paymaster, Etop Nigeria, Easyfuel and Citiserve before November 1, 2011.

The process of deploying a point of sale terminal requires the PTSPs to first register such terminal with Payments Terminal Service Aggregator for the industry which is Nigeria Inter-Bank Settlement System (NIBSS) before such terminal will be deployed.

The essence of registration of terminal before deployment in the present arrangement is to ensure that the terminal commences transaction immediately it is deployed.


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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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