General News
ATM Charge Will Boost Use of PoS – Ogungbade
Tunde Ogungbade, managing director and CEO, Global Accelerex Limited, a payment terminal service provider and a payment terminal application development company has about 19 years of global business experience as a business executive, technology thought leader, management consultant and entrepreneur.
Ogungbade has worked for organizations such as PricewaterhouseCoopers, Cap Gemini, Ernst and Young, Sogeti Group as a management consultant providing consulting services to different industry sectors such as financial services and banking, retail, telecommunication, software product development, among others.
He spoke to chike onwuegbuchi on issues around e-payment in the country.
Inter-bank ATM charge of N65
There are mixed feelings about the re-introduction of the inter-bank ATM charge. However, to properly evaluate the impact of the policy reversal, it is important to understand the origin and ideas behind ATM charges.
Historically, ATMs where introduced into banking to reduce operating cost, stemming from the idea that computers theoretically should be cheaper to operate and more available than human tellers at a bank branches.
At inception of ATMs over 33 years ago, the banks predominantly covered the cost i.e. the interchange fee, which included a switch fee as well as an annual operating fee to be part of a network.
Later, Banks introduced a surcharge fees to customers using other networks, similar to our Remote-On-Us charges.
In Nigeria, the banking industry has invested significantly in ATMs since their introduction over a decade ago.
We now have 11.39 ATMs for every hundred thousand Nigerians. To maintain a 24/7 operations ATMs, banks incur a cost, which is more significant in Nigeria when you consider the cost drivers for operating ATMs: Power, Network connectivity and technical/operational human capital support costs.
The Bankers Committee in 2012 had certain objectives, which I believe has been achieved. Back then the goal was about eliminating the fees to promote cashless adoption by changing consumer behavior.
Now in 2014, the Bankers Committee has a different objective: preserve the viability of ATM network in Nigeria by making sure that the banks can cover the operating expenses related to their ATM networks.
The push back from stakeholders clearly indicates that the original intention to raise sufficient bank customers’ awareness and gain adoption on the cashless policy has been achieved.
Now that POS terminals are now available and in used nationwide, Cardholders have options and alternatives to ATMs today which were not available in 2012.
They can bypass the ATMs and engage POS terminals directly by electing to patronize merchants’ offering options beyond cash.
It’s interesting to note that other countries, such as the US with less infrastructure challenges, charge higher network surcharge fees, sometimes as much as $3.00 to their customers.
In summary, the policy will have an overall impact of improving ATM network sustainability in Nigeria through revenues now available for ATM upgrade and enhancements that will also offset ATM operating costs for banks.
For consumers, it will trigger the next behavioral change for cashless policy adoption and drive the economy faster towards achieving the objectives of the policy by causing them to look to merchants help to leapfrog the ATM and its fees by offering POS terminals at point of the sale.
Cash Transactions Still High In spite of Cashless Policy
The cashless policy in Nigeria has a primary aim or goal – achieve a cashless economy. This is a vision statement.
At present, no nation in the world can claim to have 100% consumer cashless transactions. In Nigeria, policy makers have continued to do what is necessary.
Engage industry participants and stakeholders from all sectors, solicit input on proposed policies, effect such policies and measure for impact and implications on the economy over a season before further adjustments.
This is exactly what happened with the introduction and enhancement of various policies over the last two years, such as the Lagos Cashless Pilot, the adoption across six other states and now the entire nation for POS terminals at Merchants; likewise the ATM Fees withdrawal and reintroduction of ATM Remote-On-Us fees a at financial institutions across the nation.
Other policy adjustments are the various reviews in the deposit and withdrawal fees for cash transactions at banks.
Macroeconomic monetary policy adjustments are not a dash but a marathon. The primary objective now is making the informal sector formal and getting the unbanked banked.
After the rebase of our GDP, the informal sector accounts for about 57% of our GDP. This sector is perhaps also the highest employer of labor in the economy.
This is why the cash transactions are still high in the economy. To address it, continual policy adjustments for improvements coupled with strong awareness campaigns targeted towards stakeholders in the informal sector is required.
The sector must be made aware of the benefit of becoming formal, without necessary emphasizing on eliminating cash.
Increasing Deployment and use of PoS Terminals by Small Merchants
There is a strong motivation for big merchants to adopt POS terminals. For one, the large volume amount of cash transactions that they engage in on a daily basis, even with the withdrawal of deposit fees for corporates still presents a high cost for merchants due to Cash-In-Transit services cost that is no longer borne by banks that merchants now have to incur.
Others are avoiding robbery, theft and fraud which merchants are highly susceptible to when they maintain a vault like a bank.
For big merchants, these costs far outweigh 1.25% being charge for accepting card payment via the POS channel.
Smaller merchants in the formal sector are not structured to evaluate these types of costs and sometimes when they can, the business cannot accommodate the T+1 settlement process associated with POS transactions; cash flow is a daily lifeline for majority of these small merchants.
As a service provider, we at Global Accelerex have observed that when a small business meets the evaluation criteria for a bank such as turnover volumes etc. and qualify for a POS terminal, they still do not use the POS terminals either because of the settlement process or the nature of their customer interaction.
In addition, because the majority of these small businesses deal with the customers and suppliers that live or function in the informal sector with cash preferences, cultivating e-payment habits is challenging.
The major challenge I see now is getting small merchants to wait a day for settlement and part with the proceeds from revenue to move funds electronically. It is a tough sale to any small business.
Connectivity Issue in Business of PoS
Connectivity continues to improve albeit at a slow but steady pace. There have been recommendations by the Nigerian Communication Commission (NCC) to review some of its rules to ensure consumer quality experience in the industry.
Such improvements will have a direct impact on POS Terminal connectivity since the majority of these terminals depend on Mobile Network Operators (MNOs) to back haul connection to the switch and payment network.
We at Global Accelerex have however observed that network connectivity is not the only issue with POS terminal frustrations experienced by merchants and consumers accepting and making card payments respectively.
The quality of the POS terminal hardware and software solution also plays a major role in service level experienced.
Rigorous testing and certifications is required to ensure that terminal solutions achieve the service level that guarantees business operations’ uptime to merchant and consumers.
Global Accelerex has Terminal Management Solutions that enables it to monitor from a central location the operations of POS terminals we manage and operate as terminal owners.
From our central management dashboard, we can deduce if the issue of POS terminal connectivity has to do with delayed payment of data services plan fees to an MNO by a financial institution, check the status of our POS terminals, track the registered SIMs on the terminals, determine the cause of declined transactions to mention a few.
This allows Global Accelerex to be proactive in working with the Bank, Switches and MNO to resolve issues and keep the merchants’ POS terminals in service.
We have also discovered in other situations that the issue is not the connectivity between the POS terminal and the switch, but rather a down acquirer or issuer system essential to the success of a payment transaction.
This is most frustrating for cardholders. Long and short, a failed transaction it is not always due to connectivity.
Now we have started training merchants on how to evaluate response codes for transactions to educate cardholders on the issue related to decline transactions. Sometimes, it is as easy as informing a consumer that their card has expired!
VAS in Business of PoS to Encourage Use
Value added services require extensive knowledge of system integration with the payment network. This is one area of strength for Global Accelerex.
We are both a Payment Terminal Service Provider and a Payment Terminal Application Development company.
To date, we have successfully implemented Virtual Top-up (VTU) Vending on the POS terminal with our business partners to do VTU for various MNOs products.
To use this service, you enter any GSM Number (this does not need to be tied to an account or bank card), verify it and make payment to instantly receive the VTU on your phone – no scratch card necessary.
We have also developed bespoke POS terminal application that integrates into core business systems for electric bill payments and collection.
In addition, our POS terminals have been enhanced and certified by NIBSS for Payment with Cashback, Cash Advance, Deposit so that consumers can begin to enjoy these value added services at merchant locations that are approved for such transactions by a bank.
This is all in readiness for agency banking, an area we are aggressively working on. You may have observed that these VAS Services are tailored to merchants with business needs for integrating payment into their core business process or generic consumer offering i.e. VTU Top-up.
The reason is that we have discovered as a PTSP that the revenues from VAS that can accrue to a merchant has not reached a threshold where it has become an attractive proposition and incentive for the merchant to promote consumer use. This will change very soon.
Global Accelerex and Initiatives Towards Increased Use of PoS
Global Accelerex is a CBN fully licensed Payment Terminal Service Provider and as such we provide services on the acquiring side of the payment system to banks and merchants.
From a product perspective, we offer standard and customized POS terminal solution (hardware and software) to banks and merchants that are uniquely tailored to their business requirements.
Our solutions have a rich set of application programming interface that enables seamless integration with merchants’ core business systems e.g. ERP Systems, CRM Systems, Business Operations Support Systems etc. so that they have visibility of their Order to Cash or Service to Payment business processes.
We also recognize that some merchants do not have the IT Operations for such large scale back office system and offer the ability for medium to small scale merchants to connect to our VAS Platform and enjoy similar benefits that large merchants can afford.
We do this on a pay as you go basis for such merchants. Merchants that subscribe to such services are equipped with Real Time Analysis of their business transactions at a fractional cost.
This is what most small to medium merchants are appealing for – easy reconciliation of daily transactions.
We also provide custom solutions for Agency Banking and IGR Collections. Depending on bank or merchant’s use case, our solutions can also be tailored to integrate our PoS Systems to the merchants’ system on premises or on the cloud.
From a services side, we have Service Level Agreements with merchant acquiring banks to provide terminal agnostic PTSP services to merchants they have acquired.
Our merchant support officers are spreading across the nation armed with tools and technology to help achieve one objective – terminal up time for merchants’ business operations.
They are complemented with tools and technology from our headquarters to help with work order from banks, manage deployments, triage support issues, document resolution and put terminals promptly into service for use.
Through our proprietary systems and processes, we know when an operational terminal is not active within a predefined timeframe so that we can take corrective actions; we know when the merchant is not meeting a banks expectation and often the first to inform the bank of performance metrics; we know the volumes and values of transactions across our merchants and see time series analysis of transactions.
This and more are the type of innovation and service offering we provide to merchants and acquiring banks that we believe will help towards increasing the use of PoS.
We believe consumers are ready because they want the convenience and want to avoid the ATM fees.
General News
AfDB, World Bank Collaborate to Transform Africa’s Energy Access, Connect 300 million by 2030
Connecting 300 million Africans to electricity within the next five years is within reach through collaborative effort and commitment to implementation, participants at the Africa Energy Summit in Dar es Salaam, Tanzania, heard on Monday.
The summit is organized by the Government of Tanzania and Mission 300, an unprecedented collaboration between the African Development Bank Group, the World Bank Group and global partners to address Africa’s electricity access gap using new technology and innovative financing.
Nearly 600 million Africans lack electricity, a critical resource for economic development and job creation.
Speaking during the first panel discussion of the opening day of the two-day Summit, African Development Bank President Dr. Akinwumi Adesina set the summit’s tone of action and implementation, emphasizing practical solutions to achieve the ambitious goal, from regulatory reforms to private sector engagement.
He called for active involvement from a wide range of stakeholders, including bilateral and multilateral institutions, private sector entities, civil society organizations, and foundations.
“This is mission critical… Our mission here is to say we need everybody… It’s not about us, it’s about those who are not here, and we must listen and hear and make sure this is an action-driven summit… We can’t do Mickey Mouse business…
“We can’t have a situation where Africa does not have enough electricity,” Adesina told the audience, which included several African energy ministers, international development partners and private sector titans, civil society organizations, and foundations, attending the first day of the summit.
The second day of the summit will see the participation of several heads of state from across Africa, who will join more than 1,500 other participants. Together they will chart Africa’s course toward universal access to energy.
“We have a clear path to reaching these 300 million people,” Dr. Adesina stressed, distinguishing the initiative from previous efforts. He emphasized that the program seeks to transform Africa’s vast potential into reality through comprehensive electrification.
“With power, Africa will not just meet expectations but exceed them, becoming a competitive and prosperous continent,” he added.
Mission 300 will incorporate robust accountability measures, including country-specific monitoring and evaluation systems and the Africa Energy Regulatory Index to track progress. “This is all about accountability, transparency, and delivery while letting Africa develop with pride,” Adesina stated.
Adesina highlighted the devastating toll of traditional cooking methods based on firewood and charcoal, resulting in the death of 600,000 women and children annually due to smoke exposure.
The crisis extends beyond energy access, affecting environmental sustainability through deforestation and biodiversity loss. “It’s not just about energy transition,” Adesina said. “This is about dignity. Africa must develop with dignity and pride, and access to clean cooking solutions is fundamental to achieving this goal.” He praised Tanzania for developing a comprehensive national strategy to address this issue.
World Bank Group President Ajay Banga expressed optimism about the initiative, saying its ambitious objectives are achievable through hard work, particularly in ensuring a conducive environment for the private sector to participate. He emphasized the need for predictability of currencies, regulatory frameworks and land acquisition to incentivize investments supporting Mission 300.
In his remarks, Rajiv Shah, President of The Rockefeller Foundation, called global philanthropists to support the initiative.
“Please join us in getting behind the ideas of this initiative and the country compacts that the leaders will be signing. What is at stake is the future of African economies, the future of African young people, and the future of our world,” he said, adding that his foundation was committing $65 million to the program.
Speaking after the fireside chat, United Nations Deputy Secretary-General Amina Mohammed emphasized that energy access is not merely about power delivery, but about what that power will connect and enable.
“It is important that we see food systems at the helm of all of this, and that they are powered by the energy that you will connect,” she stated.
Mohammed explained how energy connectivity would catalyze transformative change in rural communities, particularly for women and youth, through access to digital financial services, online education, and e-commerce opportunities.
However, she stressed that realizing these ambitions would require significant financial engineering and private sector engagement. “The private sector’s got to lean in and it won’t lean in if the message is that your finance environment is not conducive to us,” she noted, calling for reforms in credit rating systems and financial architecture.
“When you want to put together the financing for energy it is not easy and it requires many people at the table in parallel with what we are doing, the policy and the regulation, designing these pipelines and getting the money ready.”
The summit is expected to yield two significant outcomes: the Dar es Salaam Energy Declaration, outlining commitments and practical actions from African governments to reform the energy sector, and the first set of National Energy Compacts, which will serve as blueprints with country-specific targets and timelines for implementation of critical reforms.
In a bid to unleash Africa’s tech potential and foster a thriving tech ecosystem that drives innovation and sustainable growth, Moniepoint Inc, Africa’s leading digital financial services provider, has rolled out a transformative initiative, DreamDevs with its call for entries.
This ambitious program seeks to nurture the continent’s brightest minds, equipping them with practical tech skills and invaluable real-world experience that will mitigate current challenges around tech talent sourcing in Africa.
DreamDevs targets very recent graduates with a background in technology, computer science, engineering, or related fields who possess fundamental programming knowledge that include HTML, CSS and foundational JavaScript. Over a rigorous nine-week boot camp, these young tech enthusiasts will receive hands-on training and exposure to cutting-edge industry technology.
“We believe in investing in Africa’s future,” says Felix Ike, Co-Founder/Chief Technology Officer, Moniepoint Inc, “and that starts with empowering young people as we join hands to grow Africa’s best talent through technology.
“DreamDevs is about more than just training; it’s about creating a pathway for ambitious graduates to become the driving force of technological advancement in Africa.”
He continues, “We have always envisioned a transformative approach to technology, using it to power the dreams of millions and engineering financial happiness across the land.
“The DreamDevs initiative perfectly aligns with this vision. By providing participants with practical experience, upskilling opportunities, startup incubation, and product development support, DreamDev equips them to become invaluable assets to the tech industry.
“We are thrilled to be part of an initiative that supports the government’s efforts to build a thriving digital economy for Nigeria.”
At the end of the boot camp, standout participants will earn internship opportunities, providing a gateway to further professional development, and all participants have the potential to secure full-time positions with Moniepoint.
As Africa’s tech revolution continues to transform the continent’s socio-economic landscape from fintech to AI, Moniepoint has consistently demonstrated its fidelity to improving the tech talent pipeline with initiatives like Moniepoint HatchDev, which is carried out in collaboration with NITHub Unilag, and organized as a nine-month specialized training programme that produces 300 junior software engineers, 100 intelligent systems developers, and 100 IoT/embedded systems engineers annually.
With the call for entry, universities and other collaborating partners are primed to play a pivotal role in nurturing the next wave of tech dreamers and innovators.
To apply or learn more about the DreamDevs programme, visit http://dreamdevs.moniepoint.com/
By Reuben Kalu
In the evolving digital marketing landscape, 2025 is shaping up to be a transformative year. Traditional paid media, once the backbone of marketing strategies, is becoming increasingly irrelevant. Instead, earned media and owned media are taking center stage, offering unparalleled opportunities for brands to connect authentically with their audiences. In this article, we’ll explore how earned media has disrupted the dominance of paid media and how you can leverage your owned media assets to turbocharge your marketing efforts.
The Rise of Earned Media
Earned media refers to the organic exposure a brand receives through word-of-mouth, media coverage, social shares, reviews, and recommendations. Unlike paid media, which requires financial investment for visibility, earned media is driven by trust and authenticity—two critical factors that modern consumers prioritize when making purchasing decisions.
According to a Nielsen report, 92% of consumers trust earned media more than any form of advertising. This trust stems from the fact that earned media is unsolicited and unbiased, making it far more credible than paid advertisements. As a result, brands that focus on generating earned media are seeing higher engagement rates and improved customer loyalty.
Why Paid Media Is Losing Relevance
Paid media isn’t entirely obsolete, but its efficacy is waning. Here are some reasons why:
1. Ad Fatigue: Consumers are bombarded with ads every day, leading to desensitization and ad fatigue. Many now use ad blockers, making it harder for brands to reach their target audience through paid media.
2. Rising Costs: The cost of digital advertising has skyrocketed, especially on platforms like Google and Facebook. Small businesses often find it difficult to compete with larger corporations with bigger budgets.
3. Declining Trust: Modern consumers are skeptical of paid ads, often viewing them as intrusive or misleading. This lack of trust significantly diminishes the ROI of paid campaigns.
4. Algorithm Changes: Social media algorithms are increasingly favoring organic content over paid promotions. This means brands that rely solely on paid media are at a disadvantage.
The Power of Owned Media
While earned media’s authenticity is its strength, owned media provides the platform to control and amplify your brand’s voice. Owned media includes channels you control, such as your website, blog, email newsletters, and social media profiles. By strategically optimizing these assets, you can create a robust marketing ecosystem that works harmoniously with earned media.
Strategies to Maximize Your Own Media Opportunities in 2025
1. Create High-Value Content
Content remains king in 2025, but not just any content will do. Focus on producing high-value, shareable content that solves real problems for your audience. This could be in the form of:
• Educational Blog Posts: Address common pain points in your industry with actionable solutions.
• Interactive Media: Infographics, videos, and quizzes can significantly increase engagement.
• Case Studies: Showcase your expertise by highlighting success stories that resonate with your audience.
2. Leverage SEO and Content Optimization
Your owned media is only as effective as its discoverability. Search engine optimization (SEO) ensures your content ranks high on search engine results pages (SERPs). Key tactics include:
• Conducting keyword research to understand what your audience is searching for.
• Optimizing on-page elements like meta descriptions, headers, and image alt texts.
• Building backlinks to establish authority and credibility.
3. Develop a Strong Email Marketing Strategy
Email marketing remains one of the highest-ROI channels for owned media. Personalize your emails to cater to the unique needs of your audience segments. Use tools like automation and A/B testing to refine your campaigns and drive higher engagement rates.
4. Engage Authentically on Social Media
Social media platforms are an extension of your owned media. Rather than treating them as one-way communication tools, use them to foster genuine engagement. Respond to comments, participate in discussions, and share user-generated content to build trust and loyalty.
5. Build an Online Community
Communities foster loyalty and provide a platform for earned media to thrive. Create forums, Facebook groups, or Slack channels where your audience can engage with your brand and each other. Encourage discussions, host Q&A sessions, and reward active participants to keep the community vibrant.
6. Integrate Data Analytics
Use data analytics to measure the effectiveness of your owned media strategies. Tools like Google Analytics, HubSpot, and SEMrush can help you track metrics such as website traffic, bounce rates, and conversion rates. Data-driven insights enable you to fine-tune your approach and maximize ROI.
How Earned Media Complements Owned Media
Earned and owned media work best when integrated effectively. Here’s how:
• Amplification: Use your owned media channels to amplify positive earned media, such as reviews, testimonials, and media mentions.
• Engagement: Encourage your audience to share your owned media content, turning it into earned media.
• Credibility: Highlight earned media on your owned channels to build trust and authority.
For instance, if your brand receives a glowing review in a reputable publication, feature it prominently on your website and share it across your social media platforms.
Examples of Successful Earned and Owned Media Strategies
1. Glossier: This beauty brand leveraged user-generated content (earned media) on social platforms and amplified it through its owned media channels, including email newsletters and blog posts.
2. Spotify Wrapped: Spotify’s year-end feature encourages users to share their listening habits on social media (earned media), driving massive organic reach. The feature’s landing page on Spotify’s website (owned media) further strengthens engagement.
3. Apple’s “Shot on iPhone”: Apple’s campaign used customer-generated photos (earned media) and showcased them on its website and billboards (owned media), creating a seamless synergy between the two.
The Risks of Overlooking Earned and Owned Media
Brands that fail to adapt to the shift from paid to earned and owned media risk falling behind their competitors. Over-reliance on paid media can result in:
• High Costs with Low Returns: Diminishing ROI makes paid media an unsustainable long-term strategy.
• Missed Opportunities: Authentic engagement and trust-building opportunities are often lost.
• Decreased Credibility: Consumers may perceive your brand as overly promotional and inauthentic.
Conclusion: Turbocharge Your Marketing in 2025
In 2025, the most successful brands will be those that prioritize earned and owned media over traditional paid strategies. By focusing on authenticity, value, and engagement, you can build trust, foster loyalty, and drive sustainable growth.
Take the first step by optimizing your owned media assets and crafting a strategy to generate earned media. The result? A marketing approach that not only keeps pace with the times but also positions your brand as a trusted leader in your industry.
Call to Action:
Ready to elevate your marketing game? Partner with us to unlock the full potential of earned and owned media. Contact [Your Company Name] today for tailored strategies that deliver real results.
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