eNNovators: Stakeholders Frown at Low mPOS Deployment

Participants at eNNovators Breakfast Series (EBS) themed making “mPOS a veritable last Mile Banking in Nigeria” have expressed disappointment with the snail pace at which providers are deploying mobile Point of Sale (mPOS) solutions in the country. 

Though NIBSS has certified 14 mPOS providers, but the participants describe the deployment as abysmally low with about 2,000 terminals in circulation.

Only by exchange of innovative ideas and exposition of business opportunities that banks, ISOs and merchants can understand that mPOS is a veritable tool for last mile banking in Nigeria.

Therefore, EBS brought together regulators, mPOS players, banks and merchants to accelerate deployment and consumer checkout experience.

(EBS) is a quarterly breakfast event. It is specially packaged for the Dreamers, Drivers and Doers (3Ds) of technology business in financial services industry across Africa.

EBS offers opportunities to network learn and plan strategically. Quarterly, leading industry Thought Leaders meet in an intimate and relaxed environment to create new relationships and promote their organizations.

mPOS
participants at the Forum, however, acknowledged the rapid growth of the mPOS solutions worldwide is making a profound impact on the wider industry with banks, FinTechs, vendors and non-bank players (NBPs) fighting for a piece of the action.

Although mPOS only emerged as a distinct category of payments about five years ago, but the global mPOS industry has experienced exponential growth.

A May 2013 report from Timetric found that globally, the number of mPOS terminals has grown from 4.5 million in 2011 to 9.5 million by 2012, representing a compound annual growth rate (CAGR) of 111%. Over the forecast period of 2011 to 2017, mPOS terminal adoption is expected to increase from 4.5 million to a staggering 38 million by 2017 with a forecast by CAGR of 42.7%, largely driven by growth in the retail sector, increased online trade and more smartphones and card users.

The report also forecasts that by 2017, the adoption of mPOS terminals over standard PoS terminals would be 46%, as opposed to the 17% seen in 2012.

But despite the global growth in mPOS deployment, it seems that banks and ISOs in Nigeria are less enthusiastic about its adoption.

Therefore, EBS brought together regulators, mPOS players, banks and merchants to accelerate deployment and consumer checkout experience.

According to Mr. Sola Fanawopo, event director at EBS, “For the mPOS scheme to succeed, it must address acceptance and payments behavior in the country as well as drive acceptance into new merchant segments in the market. The scheme must also drive acceptance into new merchant categories while extending the acceptance functionality to recurring payments such as ‘Cash-in’ and ‘Cash-out’”