By Emele Onu, 08.06.2010

 

The E-Payment Providers Association of Nigeria (E-PPAN), said at its Techno-Interactive Forum Series in Lagos yesterday that Nigeria’s payment card business among the Bottom of the Pyramid (BoP) is worth about N23.4trillion.

It said the market has the potential to become the engine room of the economy if governments, non-governmental organisations (NGOs) and private sector jointly explore the (BoP) market.

Sharing personal views about the card payment industry, the General Manager, 3Line Card Management, Mrs. Adefunke Ade-Ojo, said the cooperative model of branchless banking, using third party agent networks would be an assured means of reaching the unbanked in Nigeria, with interest in payment cards.

She said an important condition is the establishment of a well-organised cash agent network working according to regulations applicable in the financial sector with a secure cash management solution, adding that cards and PoS with potential for mobile money collaboration in future is the Holy Grail for mass financial access to the unbanked communities in Nigeria.

 

Ade-Ojo pointed out that 3Line has secured CBN’s approval to roll out “Freedom Network” branchless banking services in Nigeria, adding that 3Line has signed agreement with two leading commercial banks in the country to deploy a number of financial services to Nigerians in their locality.

 

The Managing Director and Chief Executive Officer of Nextzon Business Services, Mr. Macauley Atasie, defined the BoP as the largest, yet poorest socio-economic group, typically living on less than N500 per day in Nigeria, noting that Government to People (G2P) payment is the best way to stimulate card payment usage among the group.

According to him, G2P payments are high impact avenues to enhance financial inclusion, stressing that notable G2P opportunities in Nigeria include agricultural loans to rural farmers; rehabilitated militant’s welfare; state unemployment welfare schemes; student bursaries and scholarship and local government.

 

Source:Thisday