Automated Teller Machine (ATM) transactions hit an all time high in May, when dealings through the money dispensing machine reached 65 million, Nigeria CommunicationsWeek investigation has shown.
This is despite the challenges of system failure and fears created by fraudsters in the e-payment system
It also underscored Nigeria’s rapid progress towards becoming a cashless society and the dwindling fortunes of the over the counter cash payments.
The 65 million transactions for the month of May were achieved on the switching platforms of Interswitch and ValuCard acquirer of V-pay debit card.
The growth in non-cash payment has been seriously supported by the advancement in Information and Communication Technology (ICT) in Nigeria and elsewhere in the world.
Nigeria CommunicationsWeek also gathered that Interswitch recorded a little above 61 million while ValuCard pulled over 4 million.
This accounts for over 100 per cent of the figure of 33.3million recorded in October last year when Interswitch, the major debit card switching company released the record.
ValuCard which re-launched its operations in the e-payment system in the country with V-pay debit card last year recorded a volume of less than one million has increased to an estimated four million as most banks have join to ValuCard switch.
It was also revealed that banks on ValuCard switching platform have issued over 2 million V-pay cards.
Ngeria CommunicationsWeek investigations also revealed that none of the 24 banks in the country that have deployed over four thousand ATM has met the required standard for optimal functioning of ATMs which has resulted in increased downtime cardholders experience while attempting to withdraw money from ATM.
The entire bank deployed ATMs that require two connectivity links has only one connectivity link which has resulted in high downtime rate. They have blamed this to high cost associated with providing redundant link.
It would be recalled that e-payment system in the country is facing technology challenge as greater per cent of debit card issued in the country are on magnetic stripe against EMV chip.
It was gathered that all ATMs deployed in the country are EMV compliant and that it requires upgrade for them to accept EMV chip cards.
Mr. Bukar Kyari, managing director, ValuCard Nigeria, said that EMV chip card is the global accepted technology all over the world because of its robust feature in security of cardholders’ information stored in it.
He urged operators in the card industry to upgrade their system to EMV compliant as a security proof against the rising cases of fraudsters soliciting for cardholders debit card pin numbers.