MasterCard has launched Nigeria’s first Micro, Small and Medium Enterprise (MSME) focused Acceptance Development Program that will extend the security and convenience of electronic payments to merchants and their customers who previously depended on cash to transact.

To kick off the program, MasterCard is partnering with First Bank of Nigeria and Guaranty Trust Bank Plc (GTBank) to roll out hundreds of Mobile Point of Sale (MPOS) devices to retailers including Fast Moving Consumer Goods outlets, grocers and leading online stores allowing them to process debit, prepaid and credit card transactions by using a smartphone connected to a secure card reader.

“MSMEs are an important sector in our economy, representing 95% of registered businesses in Nigeria.  However, nearly 98 percent of all MSME transactions are still made with cash,” said Omokehinde Ojomuyide, vice president and area business head, MasterCard, West Africa. 

“Using innovative payment technology, this program will help MSMEs reduce the costs of cash, increase sales, grow their customer base and improve cash flow, while making it easier and safer for their customers to pay.”

The MPOS solution comprises a MPOS payments application and a physical card reader with a secure PIN pad for PIN entry that connects to the merchant’s smartphone using Bluetooth.

This negates the need for merchants to access a fixed data or telephone line, and helps them to overcome connectivity challenges as the devices use a range of data connectivity options including EDGE, 2G, 3G, and 4G.

They also adhere to the ‘CHIP and PIN’ certifications mandated in Nigeria, meaning consumers can be assured that their transactions are safe and secure.

To further encourage MSMEs to adopt electronic payments, MasterCard is working with MPOS solution providers to introduce a range of value added services including loyalty programs, air-time top up, person-to-person remittances, bill payments, inventory control and others.

These services will enable merchants to grow their revenues and increase efficiencies.

“The rapid growth of smartphones in Nigeria provides a huge opportunity for innovation across all industries – especially in payments,” said Ojomuyide.

“This program uses smart technology that transforms mobile devices into tools of commerce, and delivers services that will benefit all stakeholders in the payments ecosystem. It also supports the Central Bank of Nigeria’s Cashless Nigeria policy, and will help this vital sector to connect more efficiently to the national and global economy.”

MasterCard remains a technology company in the global payments industry, operating the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.

Guaranty Trust Bank plc is also a foremost financial institution with vast business outlays spanning Nigeria, Cote d’Ivoire, Gambia, Ghana, Kenya, Liberia, Rwanda, Sierra Leone, Uganda and the United Kingdom.

With a network of 233 branches in Nigeria(including Cash Centers, 18 e-branches, 23 GTExpress locations), Guaranty Trust Bank plc has a bias for innovation, ethics, professionalism and a strong service culture that has enabled it record consistent year on year growth in clientele base and key financial ratios since inception in 1990.

And First Bank of Nigeria Limited, a subsidiary of FBN Holdings Plc, is Nigeria’s leading financial services institution by total assets and gross earnings and one of the largest corporate and retail banking financial institutions in sub-Saharan Africa (excluding South Africa).

Since its establishment in 1894, the Bank has consistently built relationships with customers focusing on fundamentals of good corporate governance, strong liquidity, risk management and strong capitalization. First Bank operates an extensive distribution network with over 750 business locations (623 branches, 61 quick service points and 69 cash centers/agencies), over 2464 ATM’s and over 9 million customer accounts.

The Bank provides a comprehensive range of financial services and has international presence through its subsidiaries, FBN Bank (UK) Limited in London and Paris, FBNBank DR Congo, FBNBank Ghana, International Commercial Bank (ICB) The Gambia, Guinea, Sierra-Leone and Senegal  as well as its Representative Offices in Johannesburg, Beijing and Abu Dhabi.