LFR Communications, Inc. of Laurel, Maryland has announced that its formal expansion into platform licensing, management and advisory services for mobile payments in Nigeria.
Mobile payment technologies are not universal and a Nigerian-centric approach is needed, said LFR to mobile payment providers in Nigeria. “Expectations are high”, said CEO Peter Ojo. “Nigeria’s leadership wants to bring the benefits to ordinary Nigerians. The technology must not fail.”
Many mobile technologies are generally viewed as “plug and play” and it may be tempting for a Nigerian company to pay to license technology from western companies with recognized names but no on-the-ground experience. One soon learns that not all “plugs” are identical. Just as international travelers pack adapters to allow use of a variety of electrical outlets, mobile payment technologies must accommodate local requirements to achieve long term and sustained interconnectivity.
There is no well-known solution provider with proven track record of success in this space in Nigeria, but there is one that has been working quietly and diligently for the past 7 years, before the market became attractive to providers, behind its branded Graphcard product and its subsidiary’s branded VirtualTerminalNetwork.com platform. Though LFR itself is not yet a household name in Nigeria, it has been a major force driving e-commerce and mobile payment capabilities in Nigeria since 2003, two years before the Nigerian Banks started issuing Visa and MasterCard products.
For organizations planning to engage in the mobile payment business in Nigeria, having the right technology from the onset is almost everything because they don’t have time to experiment with unproven imported technologies built around credit card systems and assumed bank funding interconnectivity. “The Nigeria landscape is radically different,” explains Ojo, “and what we have found in the last 7 years may shock those less technically-inclined. Retrofitted approaches that assume connectivity have poor track records.”
The term “tropically tolerant software” describes an approach that, from the ground up, is designed for the specific intricacies present in certain countries. Designing software that matches, at DNA level, the systems into which it must plug and remain connected to in order to function results in the most reliable and uninterrupted service.
Just as having a credit card in Nigeria does not guarantee acceptance online, the same mindset must be avoided when it comes to the mobile payment platforms adopted by providers. Solutions must address fundamental questions:
After moving money from point A to point B what else can my customer do and how can we increase our revenue without solely relying on money movement transaction fees alone?
As consumers get familiar with sending money how will your system interconnect with other providers seamlessly, without delay and huge associated costs?
The ability to interconnect seamlessly will depend on the vested interest of the backbone provider, flexibility of the platform to adapt and how well the mobile gateway providers understand the local market needs to ensure financial inclusion of the unbanked. It is not a game of profit-taking alone but unwavering devotion to ensure that Nigeria is not left behind in this race.
“A realization of the potential is now in sight,” said Ojo, “the benefits for my fellow Nigerian can be huge and now is the time for LFR to take the lead itself, and develop its brand in Nigeria.”
