Nigerian payment space, one of the most dynamic in the world

The payment space in Nigeria is one of the most dynamic in the world, as it has rapidly evolved with many investments coming into the region.

This was disclosed by the Country Manager, Visa Nigeria, Mr Andrew Uaboi, in an exclusive interview with The Punch on Sunday.

Uaboi discussed topics including payment systems, the effect of Covid-19 on businesses and the future of e-commerce in Nigeria.

What Visa Nigeria is saying?

He said: “The payment space in Nigeria is one of the most dynamic in the world because we are rapidly evolving, and many investments are coming into the region as a result of that. Nigeria has evolved rapidly from manual cash processing a few years ago to seamless and convenient real-time electronic payment solutions driven by innovation and technology as well as partners that are nimble, fast, and creative.

“Today, consumers and merchants typically have a full suite of payment options to choose from. So, they are spoiled for choice. Many of the solutions offer them safety and convenience in making and receiving payments. This is also driving the adoption of digital payments. Mobile phones have become increasingly important not just for mobile money but also e-commerce.”

Cross-border transactions, he said have increased over the years and his company is proud of the role it played in driving that across Africa.

“Some of the tools that we have provided to support this include solutions like virtual cards and payment gateways such as CyberSource,” he added.

On the effect of the global pandemic, which disrupted businesses, he said, “We have seen new behaviours, new ways of accessing commerce, and new methods of consuming both information and everything else individuals would normally consume.

“While purchasing power has been impacted not just in Nigeria but around the world as a result of COVID-19 and lockdowns, the e-commerce space has continued to evolve. Interestingly, unlike physical shopping, e-commerce has not reduced at all; in fact, it has exploded. Essentially, whilst COVID-19 has resulted in a large backlog of issues, it has given an opportunity for e-commerce to thrive. Our studies showed that during the lockdown, about 71 per cent of consumers started purchasing groceries online. That is why we see countries such as Nigeria, South Africa, and Kenya driving and continuing to push and expand the e-commerce platform across the whole of sub-Saharan Africa.”

Uaboi said Visa is channelling growth initiatives that will drive the future of e-commerce and online shopping space to enable digital payments in a safe and enabling manner.


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