Experts Identify Roadblocks to Electronic Payment Adoption

Electronic payment experts have identified factors militating against the adoption of the policy in 30 states of the country where the third phase was launched in July 1, 2014.

Onajite Regha, executive secretary/CEO, E-Payment Providers Association of Nigeria (E-PPAN), said that in other cities apart from Lagos and Abuja, there has been a slow pace of growth for the other use of these channel to conduct the cashless transactions owing to many reasons and facts.

“Some of which includes: poor network and infrastructure, language barrier (as most of these people are not educated), under-commercialization of such areas too affects the level of adoption of this policy. But the response we are getting in Lagos and Abuja can be equated with the available infrastructure, the sophistication of the market and the commercial exposure of the cities”.

She stated that: “So far, E-PPAN in its advocacy nature has taken steps ahead to break the barrier of this poor adoption. We are looking into capturing the lower part of the pyramid with the mobile payments awareness which will see more people included financially and thereby increase the adoption of the Cashless policy.”

Tunde Ogungbade, managing director, Global Accelerex Limited, added that ATMs have served well as a training ground for consumers and merchants alike in Nigeria. 

“They are accepted as a means for withdrawal by both because the ATM machine has established its credibility in Nigeria for over a decade, unlike its cousin, the PoS terminal. There have been issues with ATMs and banks have risen to the occasion to address them, therefore, cardholders over the years have become more comfortable with the use of the technology”. 

He explained that without the ATMs for examples, many cardholders in Nigeria, especially the underserved, would not have been trained in the use of Chip and Pin card that has led to the level of trust and adoption of PoS terminals as we observe today.

“The issue of PoS terminals adoption as a means of payment, I will go one step further by saying that POS Terminals are ready for adoption as both a means of Payment and Cash Withdrawal at merchant locations.  Last November and subsequently afterwards, CBN has established policies aimed at promoting cashback transactions at the POS Terminals as an incentive scheme for merchants in Nigeria”.