Mobile Devices Mean Big Payment Growth In Nigeria

Mobile devices have increased payment activities in Nigeria by more than 600 percent. Reports show that an array of mobile devise like smartphones and tablets, which also includes phone/tablet hybrids known as phablets and the lesser-powered feature phones- have drastically increased payment transaction activities in the African Nation.

Mobile is actually generating more growth than desktop Internet access, third party access and even bank tellers.

Reports point to three key drivers of this phenomenon: general advance in technology, an increase in both smartphone usage and Internet access in general, and a set of new products and services to hit the market. Nigerians now have more mobile devices than they do bank accounts, so they are turning to systems that don’t necessarily require banking. The Nigeria Inter Bank Settlement System pegs the number of banked Nigerians to be over 73 million, while the Nigerian Communications Commission’s estimates that number at more than 145 million.

In addition, World Payment Report, data reports mobile payment transactions were up 58.5 percent over the previous year, and e-payments in general were up 18.1 percent annually.

However, this surge in growth has been costly in other sectors; reports say that desktop Internet grew at 117 percent, third party deals were up 97 percent and even bank tellers saw 87 percent growth.

These new findings suggest Nigeria is ready to accommodate mobile payments as the financial market is showing a strong penchant for access to the platform. However, it’s unclear just how long these growth rates can hold out, as demand for new and improved services grows, offering a greater value overall.