Payment system experts have stressed the need for electronic payment (e-payment) providers to embrace increased partnerships and utilisation of data analytics to sustain the triple digit growth recorded so far under the Payment System Vision 2020 (PSV).
The experts made the observation while speaking at the 2019 retreat of the Committee of E-Business Industry Heads (CeBIH) held in Abeokuta, Ogun State.
The retreat, with the theme: “Payment 2020plus: The Next Frontiers of Payments,” featured Dele Adeyinka, Chief Digital Officer, Polaris Bank; Niyi Ajao, Deputy Managing Director, Nigeria Interbank Settlement System; Ekechi Nwoka, Chief Executive Officer, Migo Technology Services; Kevin Chen, Director of International Business, Eastcompeace China.
Others were Bola Asiru, Principal Mastercard Advisory, Sub-Sahara Africa; Wole Oyeniran, Technology and Transformation Leader, Deloitte West Africa; and Olayinka Oni, Chief Digital Officer, Sterling Bank.
The Secretary to the Ogun State government, Tokunbo Talabi, in his goodwill message, commended the huge progress recorded in the Nigerian payment system landscape.He, however, pointed out the concomitant rising risk of cyber fraud, and called for collaboration to tackle cyber fraud, stressing that it is critical to ensuring that the gains recorded are not eroded.
Talabi also called for collaboration with government on key policies and initiatives to ensure the system is adopted by average Nigerian.But in a presentation titled: “Review of the Evolution of the Payments in Nigeria between 2000 and 2019, Adeyinka of Polaris Bank noted that the industry achieved a Compound Annual Growth Rate (CAGR) of 120 per cent in transactions value.
According to him, this was driven majorly by collaborations between the regulators and stakeholders in the payment but called for the attention of the gathering to the rising prominence of data in driving payments.“Data plays a major role today and moving forward. As we deliberate on the next frontiers of payment, we will know that data will play a major role.
Also speaking on the rising prominence of data, Asiru of Mastercard, said: “Anything that we see that is facilitating payment in the digital space, behind it there is some level of data.”He advised banks and other stakeholders to follow the rising trend of partnerships between banks and Fintechs in the global payment space, and collaborate with the upcoming Payments Services Banks (PSB).
While highlighting the global trend in collaboration between banks and Fintechs, Asiru added: “Another reason why global financial institutions do this kind of deals is because they don’t have the data about a particular geography”.
The Chief Executive Officer of Migo Technology Services, Ekechi Nwoka, cited the Migo platform as an example of the collaboration needed to enhance further growth in the payment space.“We are interested in partnering with everyone to drive the business of credit and lending”, he said. Migo, he explained, works with a variety of partners, from switches and payment gateways, like Interswitch, Cellulant, telcos and banks.