Mobile payment transactions in Nigeria for the first half of 2018 hit a record N739.6 billion in the first half of 2018 compared to N555.8 billion and N612.7 billion in the first half of 2017 and 2016 respectively.
POS transactions topped N1 trillion for the first half of the year compared to N610 billion and N676.7 billion in the same period in 2017 and 2016 respectively. Internet Web-enabled transactions came in at about N113.9 billion for the first half of 2018 compared to N83 billion and 106.2 billion in the same period in 2017 and 2016 respectively.
In total, E-payment channels in Nigeria for the first half of 2018 was N65.3 trillion in the first half of 2018 compared to N49.4 trillion in the same period in 2017. This is based on banking data from the National Bureau of Statistics.
Reading of the data.
- For Nairametrics, Mobile money, Internet, and POS transactions remain the core focus of Fintech led growth Payment channel transactions in the country.
- Combined this industry was worth a whopping N1.8 trillion in the first half of 2018. Total payment channel transaction in 2016 and 2017 was N3.1 trillion and N2.69 trillion respectively.
- 2018 numbers indicate we are on track to set a new record as we could top 2016 numbers to hit N3.7 trillion. The second half of the year is typically stronger.
- Based on this, various players in the industry are competing for a potential N37 billion in fees earned in 2018 (assuming commissions of 1%). Commissions can be as high as 3% in some cases.
- This calculation excludes ATM, Cheque, NEFT and other e-payment transactions.
- Nigerians are increasingly adopting the use of payment channels to facilitate transactions.
- Fintech and other payment channel operators will be looking at this data as a benchmark for exploring growth opportunities. The higher the value of transactions the more they can earn
- Nigeria has witnessed an influx of payment channel agents looking to facilitate transactions in the country.
- This market is still nascent and will keep growing stronger. For example, ATM transaction was worth about N6.7 trillion in 2017.
- There is also several trillions of Naira outside the banking sector which is being targeted via the CBN’s financial inclusion initiatives.
Other key indicators
- Value of Cheque transactions was N2.59 trillion in the first half of 2018 compared to N2.7 trillion and N3.3 trillion in the same period in 2017 and 2016 respectively.
- NEFT transactions, which is the Nigerian Electronic Fund Transaction was a whopping N7.2 trillion in the first half of 2018 (N7 trillion in 2016 and 2017 respectively)
- Banks basically make most of the money from Cheque, ATM, and NEFT transfers.
- Remita transactions was a whopping N9.3 trillion in the first half of 2018 (N6.9 trillion in the same period 2017).