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Mobile Payment: Potential and reality for Nigeria

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The ability to pay for goods and services without having to carry cash or cards has universal appeal. In Africa it is being driven by the need to reduce the risk of theft.  The mobile is ideal because it is cheap and ubiquitous and can authenticate the payer and payee and record the transaction. The recent re-awakening of initiatives in the mobile and financial industry on mobile banking and payment services is causing a stream of field trials and potential new revenue streams and customers for the financial services sector.
The mobile payment industry will change the way consumers interact with financial services and make payments. Mobile financial services will include consumer accounts information, updates, alerts, bill payments, person to person transactions and remittances.
The mobile will play a key part in the foundation of sustainable development in Nigeria.  In a country where electricity and transportation are unreliable, the mobile phone is a driving force for change – and not just for voice calls. Mobile phones can address one of the biggest cost barriers in the value chain.
The success of M-pesa in Kenya has demonstrated the strong compelling need for a platform that can empower Africans to make transaction cashless and without need to visit a Bank. Nigeria’s seeming slow uptake of mobile payment presents a huge opportunity that can revolutionize the payment world, create new set of mobile entrepreneurs and new Business models with strong value realization in a market of 54 million mobile subscribers and an addressable market of 140 million people.
The mobile phone is a powerful channel for developing business. The Banks can still not yet win the youth segment accounts because they are approaching them via traditional channel and not what  they always have with them, the mobile phone. The youth segment will most likely adopt mobile payment faster than the older segment because they are early adopters of technology and the good news is that they constitute a large segment in the mobile subscription pyramid in Nigeria and still largely unbanked or under-banked. Simple arithmetic from total subscriber base in Nigeria, shows that 54 million mobile subscription base is twice the Bank account holders of about  24 million, this clearly shows a huge 30 million people out there with mobile phones but without a Bank account.
Nigeria financial industry  players seeks elusive mobile technologies and standards but slow progress is being made towards achieving interoperable and transparent standards for mobile payments. The process is complicated by the large number of stakeholders involved, in addition to the challenge of integrating various business models and technology layers into one platform. Even the term ‘mobile payments’ has different definitions. While some Banks currently offering Mobile Banking are erroneously  classifying their service as mobile payment even when the subscribers cannot do more than check account balance or transfer money between self account in same Bank.
Wizzit in South Africa, M-pesa in Kenya, Gcash in Philippines are country with similar demographics with Nigeria are examples of very successful mobile payments deployments.
Mobile operators are known not to be very adept in providing core payment and financial services, hence there is need for cross industry collaborations like what we have seen in the Glo / First bank cash card and  the MTN / UBA x-change cards. Such collaborations is paying off in the mobile Banking arena in South Africa’s MTN and Standard Bank’s partnership. In South Africa, MTN, launched a SIM-based m-banking service with Standard Bank in a 50:50 joint venture, MTN MobileMoney. The Y’ello Bank, as it is often referred to after MTN’s pan-regional Y’ello branding campaign, operates as a separate division of Standard Bank, and as such is regulated under Standard Bank’s banking licence which brings compliance and interoperability to the rest of the payment infrastructure.
Many Nigerian Banks are evaluating different mobile payment systems from offshore providers but they are yet to learn from  Africa’s  own painful experiences in wap Banking. Offshore transfer of WAP banking  technology was a disaster because an internet-based technology was applied to the mobile phone, resulting in an experience that was slow, unreliable and costly for consumers in a continent with expensive mobile internet cost, poor coverage, hand set limitations and  inadequate customer education. Simpler technologies would have achieved more.
SMS text messages will continue to be the dominant channel for mobile payments, although take-up of WAP, USSD and near field communications (NFC) contactless services will also grow. NFC technology seems to be attracting attention of players in Nigeria because of its ease of use and the European Hype but they are not factoring the end user into the plan at this early stage. The main draw back for NFC is that users will require acquiring NFC enabled handsets and that will be a major obstacle in a economy where income per head is low and average Hand set replacement rate is four years.Near sound Data transfer technology of the likes of Tag attitude of France are clear bridge gap measures not requiring any form of new hand set acquisition from the end user and it is immediately compatible with all Phone models.
Already, informal exchanges of Mobile Airtime locally in Nigeria accounts for over 5 percent of airtime purchases and Banks  might start losing market share if people find it more convenient to move money around and repay their debts, send little amounts to friends and relatives  via this informal channel for  small value payments.
A mobile payment system therefore needs to adapt its technology and business model to its specific target demographic and not the other way around. The potential for mobile payments, especially in emerging markets where many people are unbanked and few other payment options exist, is obvious. In developed countries, on the other hand, these types of services will likely appeal more as a matter of convenience and extension of the other payment options available, rather than as a replacement bank.
Mobile payment is not a problem of technology. It is the management of the ecosystems of players like Banks which lack the technology, telcos industry non collaborative positions and inadequate understanding of financial matters and lastly, regulations which does not take into consideration, the speed of technology innovation that will hinder the growth  of the sector that is already striving underground though not illegally but informally.
 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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New CAMON Device Set to Redefine Mobile Content Creation

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TECNO is gearing up to launch the next CAMON series device, which promises to be the next evolution in mobile photography.

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The CAMON lineup has always been known for its innovation in capturing and sharing cherished moments. Now, TECNO is taking it to the next level with a groundbreaking camera innovation that aims to redefine what’s possible.

For years, the CAMON series has been the driving force behind countless memorable shots, empowering users to unleash their creativity and capture the world in stunning detail. With the upcoming device, TECNO promises to exceed your expectations and deliver an unparalleled photography experience that’s second to none.

The new CAMON device will feature cutting-edge technology and unparalleled performance, setting a new standard for mobile photography and content creation. Imagine being ten steps ahead of the curve, armed with a device that empowers you to capture the perfect shot every time.

Stay updated on the latest news and announcements regarding the upcoming TECNO CAMON device by following TECNO on FacebookInstagram, and X(Twitter). Join TECNO on this exciting journey towards the future of mobile photography!


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Data Protection: NIMC’s Licensees to Face More Scrutiny

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Following the reported incident of unauthorized NIN verification by expressverify.com, investigation reveals that a third-party who, among others, was originally authorized to provide verification services to citizens and genuine businesses might have allowed expressverify.com to use its NIN verification credentials to conduct verification. The circumstances surrounding this permission is still under investigation.

 

To remedy this incident, National Identity Management Commission (NIMC), in line with established remediation protocols, barred all forms of access to its database.

Though necessary, barring all forms of access affected all genuine and crucial verification requests. After a painstaking review, limited access has been granted to few establishments that are providing pivotal public services such as education and security.

Ongoing investigation – by relevant agencies – seeks to establish the medium through which expressverify.com obtained the credentials of bona fide third parties and to determine the liability of persons involved in line with extant laws.

At the moment, data processing by licensees generally are to be scrutinized and only those that are cleared based on credible evidence of regulatory compliance will be permitted to carry out NIN verification going forward.

Furthermore, series of intensive trainings will be conducted in order to ensure that personnel and licensees are abreast of the duty of care and the standard of care mandated by the Nigeria Data Protection Act, NIMC’s Privacy Policy and other relevant regulatory protocols.

In the meantime, NDPC calls on members of the public to see NIN as an essential data for sustainable development. While existing technical and organizational measures are being strengthened to ensure the protection of this data, it is important for citizens to ensure that they are not left unidentified in various frameworks for development. It is equally important to be vigilant when sharing personal information on various online platforms.


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5 Common Backup Mistakes and How to Avoid Them

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Are you confident that your valuable data is protected from unexpected disasters or cyber threats? Consider this: 1 in 10 computers fall victim to viruses, and a staggering 113 phones are stolen every minute every day[1].

With data loss being a sudden and potentially irretrievable nightmare, ensuring reliable backups is non-negotiable. March 31st, celebrated as World Backup Day, is a poignant reminder of this essential task. Let’s delve into the common backup mistakes people make and how to steer clear of those.

1. Skipping regular backups:

The most common mistake is forgetting to back up data regularly. Whether personal files or crucial business documents, not establishing a consistent backup routine leaves you vulnerable to data loss.

Unexpected system crashes or malware attacks can happen anytime, making your precious data inaccessible or permanently lost. But you can help avoid such a situation by setting up automatic backups.

SSD Backup Mistakes to avoid
2. Putting all faith in a single backup device:

A device can get damaged or stolen, putting your backups at risk, so depending entirely on one storage medium is playing a dangerous game with your data’s safety.

 Instead, diversify your backup storage solutions with a combination of external HDDs, NAS, and cloud storage.

Portable HDDs like those from WD like Western Digital’s My Passport offer up to 5TB for simple, cost-effective backups. For smartphones, 2-in-1 flash drives such as SanDisk Ultra Dual Drive Go USB Type-C and SanDisk iXpand Flash Drive Luxe are convenient options.

These drives, compatible with USB Type-C devices, automatically back up photos, videos, and more. Just plug and play for seamless data transfer across devices.

If you need a device to store huge amounts of data, then the desktop drive called My Book  from WD is just the product for you, with up to 22TB of storage capacity.

SSD Backup Mistakes to avoid
storage device

3. Forgetting version control:

Overlooking version control during backups is another blunder. Not keeping multiple versions of files increases the chance of saving corrupted or wrong data over previous versions.

Without a proper versioning system, fixing mistakes or retrieving older versions can become a challenge. To prevent forgetting version control, establish a system that tracks changes to your files over time.

This ensures that you can always revert to earlier versions if needed, helping protect against accidental data loss or corruption.

Regularly maintaining this system will help you stay organized and prepared for any unforeseen issues.

Additionally, it’s crucial to verify the version you’re backing up to ensure it’s the correct one.

This simple step can help prevent accidental overwriting of important data with potentially corrupted or incorrect versions.

Double-checking ensures that you’re safeguarding the most up-to-date and accurate information, minimizing the risk of errors during backups.

SSD Backup Mistakes to avoid
4. Ignoring off-site backup solutions:

Many people overlook off-site backup solutions, assuming local backups are foolproof. However, relying solely on local backups makes you vulnerable to site-specific disasters like fires or theft.

Using off-site backups means keeping copies of your data in different places so that if something bad happens in one area, your data stays safe.

As an alternative, you could use cloud storage. Cloud backup devices are popular for remote data storage accessible via the internet. Various online cloud services offer features like file synchronization, sharing, and encryption for secure data storage.

5. Underestimating encryption:

Not prioritizing encryption in backups can be a costly mistake. Storing unencrypted backups makes your sensitive data vulnerable to unauthorized access or breaches.

Implementing strong encryption ensures even if your backups fall into the wrong hands, the data remains protected.

However, it is equally important to remember not to opt for out-of-the-box encryption solutions, as they might make it difficult for you to retrieve the backed-up information later.

My Passport HDD and My Book from WD come equipped with built-in 256-bit AES hardware encryption with password protection that helps keep content secure.

Additionally, maintaining proper key management practices is essential to ensure smooth decryption and access to your data when needed.

SSD Backup Mistakes to avoid
Monitor and storage device

This World Backup Day, Western Digital urges you to back up your data safely, and at the same time, prepare for the unexpected by having a contingency plan in place for device mishaps like crashes, theft, or damage.

Worrying about losing data isn’t something you have to lose sleep over if you have an active data backup strategy.

A common rule of thumb for keeping important data from disappearing forever is the 3-2-1 Rule. It dictates that you should:

3. Have THREE copies of your data. One is a primary backup and two are copies.

   2. Save copies of your backups on TWO different types of media or devices.

   1. ONE backup copy should be kept offsite in case of disaster.

Determine where and how you’ll store backup files and identify support contacts for swift assistance.

These proactive measures ensure quick data recovery and safeguard your cherished memories for the long haul.


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