E-Financial
PoS Operators Dump GSM for CDMA
Point of Sale (PoS) terminals operators may have resolved to switch over to Code Division Multiple Access (CDMA) to address the perennial connectivity challenges associated with the use of Global System for Mobile (GSM) communication’s general packet radio service (GPRS).
PoS terminal is an electronic device that is used for verifying and processing credit card transactions and works by typically transmitting data over a standard telephone line or an Internet connection (either wired or wireless).
Currently, most PoS terminals in Nigeria are provided with connectivity through GSM subscriber identity module (Sim).
The terminals use the GPRS service of the network (the GSM service provide) to communicate with the network infrastructure of the terminal deployer in this case CBN licensed Payments Terminal Service Providers (PTSP) and National Central Switch as Payments Terminal Service Aggregator (PTSA).
Nigeria CommunicationsWeek however gathered that the growing difficulties to cache transactional data and transmit same accordingly are causing great discomfort to users; merchants; and payments terminal service aggregator.
And if immediate authorization is not available at the time the card was processed, the payment cannot go through and therefore the transaction would not be carried out.
Merchants said that the problem is common with most PoS terminals with connectivity provided through GSM subscriber identity module.
Telecommunications network connectivity difficulties account for 58.5% of challenges merchants faced in Point of Sale (PoS) transactions according to a field market research sponsored by Nigeria Inter-Bank Settlement System.
Samuel Oluyemi, head, Business Strategy, NIBBS, who disclosed this, 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%.
In a recommendation to NIBSS operators of NCS, the merchants argued that if the current effort by Nigeria Inter-Bank Settlement System to increase the penetration and use of the device is to succeed, there is need to provide a reliable connectivity at PoS by switching from the present GPRS to CDMA.
They believed that CDMA technology is best suited to deliver data service and that it offers secure communication channel.
According to them, CDMA can also reach even the remotest of areas, so provides wider network service and that the power consumption is reasonably lesser.
Elsewhere, some telecom industry operators have welcomed the move stressing that the switch may well be life-line for the struggling CDMA operators.
E-Financial
Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme
“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.
E-Financial
CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering
Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.
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.
E-Financial
CBN Urges Banks to Expedite Action on Recapitalisation
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.
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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