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Payment Card Use Sees Double-digit Global Growth in 2016

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Global card purchase volume for goods and services (excluding cash advances on credit cards and cash withdrawals on debit cards), grew 5.8 percent to $20.606 trillion in 2016, according to The Nilson Report.

UnionPay debit cards were the most popular payment product based on purchase volume, followed by Visa credit cards, Visa debit cards, UnionPay credit cards, MasterCard credit cards, MasterCard debit cards, American Express cards, JCB cards, and Diners Club/Discover cards.

Visa, UnionPay, MasterCard, JCB, Diners Club/Discover, and American Express brand general purpose cards generated 257.17 billion purchase transactions at merchants in 2016, an increase of 13.3 percent, or 30.21 billion more than in 2015. These transactions included all commercial and consumer credit, debit, and prepaid cards.

Visa cards generated 54.06 percent of all purchase transactions on general purpose cards worldwide. Debit cards with the Visa brand continued to account for the most purchase transactions with a share of 34.82 percent, followed by Visa credit cards with 19.23 percent.

MasterCard debit cards had a 13.30 percent share, overtaking MasterCard credit cards, which had a 12.87 percent share.

UnionPay credit cards had a 7.59 percent share, and UnionPay debit cards had a 7.32 percent share.

American Express had a 2.81 percent share, followed by JCB cards with 1.15 percent, and Diners Club/Discover cards with 0.91 percent.

“When consumers worldwide reach into their wallets for a payment card, more than half of the time, they use a Visa card,” said David Robertson, publisher of The Nilson Report.

UnionPay had the largest percentage increase in purchase transactions. Combined, UnionPay credit and debit card purchase transactions at merchants grew 32 percent in 2016.

Debit and prepaid cards accounted for 55.44 percent of purchase transactions, up from 54.64 percent in 2015. Visa purchase transactions were 64.42 percent debit, up from 63.91 percent. MasterCard purchase transactions were 50.82 percent debit, up from 49.99 percent. UnionPay purchase transactions were 49.08 percent debit, up from 46.90 percent.

Credit, debit, and prepaid cards in circulation worldwide totaled 11.15 billion at the end of 2016, up 9.4 percent from 2015. Of all cards in circulation, 77.37 percent were debit, up from 75.89 percent.

Debit cards in circulation grew by 894.8 million compared with a 67.1 million increase for credit cards. UnionPay added the largest number of cards at 683 million, an increase of 12.6 percent; JCB had the second largest increase in cards, at 9.4 million, an increase of 10.1 percent.

Visa added 141.4 million cards (up 4.8 percent), MasterCard added 136.9 million cards (up 8.9 percent), American Express declined by 7.9 million cards (down 6.7 percent), and Diners Club/Discover declined by 1 million cards (down 1.7 percent).


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“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.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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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.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

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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