In continuation of our last article on the CBN’s Nigeria Inter-bank Settlement System (NIBSS), we previously brought you ideas on how NIBSS has powered digital payments to new heights through its Instant Payment System (IPS). With support from AFRICANENDA, together with the World Bank and the European Economic Commission for Africa, NIBSS has demonstrated the inclusiveness, and accessibility of IPS to end users and operators.
As we have observed in part 1 of this series, the SIIPS study is consumer research involving “extensive in-country qualitative and quantitative research covering low-income adult individuals and micro, small, and medium-sized enterprises (MSMEs) across seven countries: The Democratic Republic of Congo, Egypt, Ghana, Kenya, Nigeria, Tanzania, and Zambia”.
READ ALSO: Talk To CBN Through Your Bank: What Do You Feel About Nigeria’s Online Payment Systems?
The qualitative techniques of in-depth interviews, focus group discussion and immersions to understand the “key drivers of shifting consumer behavior toward IIPS”. In this offering, we present a digest of SIIPS research results on consumer behaviour, perceptions, drivers and barriers to digital payments.
Through the qualitative techniques, the SIIPS 2022 report showed that “personal preference, the nature of transactions, and merchants’ acceptance of digital payments are among the key determinants of how payments are made.” Many buyers would prefer to use digital payment options, but are often forced to make other decisions based on prevailing circumstances such as whether a vendor has a digital account or the quantity of products purchased. Summarily, “key considerations for cash or mobile money usage include perceived speed and convenience, incentives, and better planning and management of finances”. This means that buyers and vendors alike are taking advantage of perceived benefits in the digital options such as simplicity of use, rewards from digital money providers, and the tendency to be more prudent in spending on the digital platform.
READ ALSO: Naira Hits N1,532/$1 As Nigerians Lament Worsening Economic Crisis
Against the backdrop of these benefits, the SIIPS 2022 report also showed that consumers complained that “poor network connectivity and high transaction costs are the leading barriers to usage of digital payments among individuals and MSMEs” as shown in Figure 1.
Figure 1: Barriers to digital payments
Rising transaction charges, network connection problems, delayed transaction alerts and fear of fraud or scam are the most potent among customers. However, traceability of transactions, openness through the display of transfer beneficiary names and the use of passwords have increasingly offset most of these barriers. And as the barriers give way, the report concludes as follows:
READ ALSO: Instant And Inclusive Payments Systems: From Fear To Fast Payouts
The report recommends increased effort at addressing customer concerns following user experiences, which should align with service offerings. The most important concerns arise because “customers feel that they pay double transaction charges for the same services from the same providers. For example, bank maintenance fees, bank transfer charges, bank mobile charges per transaction are all surcharged to the same account holder”. Access to customer care and representatives should be addressed digitally to sidestep delays.
In concluding the recommendations, the report reaffirms the call of the present article by asking “In your opinion, what should be done to make digital payments more instant and inclusive?” Just talk to your bank.
Dr Mbamalu, a Jefferson Fellow, is an Editor, Publisher and Communications Consultant. Follow on X: @marcelmbamalu
Davido has released the music video for his hit song "Kante," featuring singer-songwriter Fave. The… Read More
Nigerian government has described as "false", the allegations made by cryptocurrency exchange platform, Binance, that… Read More
The military is saddled with the responsibility of safeguarding a country's territorial borders and it's… Read More
Nigerians have expressed dissatisfaction with the new cybersecurity levy imposed by the Central Bank of… Read More
The number of students in most Nigerian universities engaging in businesses has been rising in recent times. This… Read More
Nigerian superstar Simi has spoken up about the inspiration behind the controversial title of her… Read More
This website uses cookies.