E-Payment, Fintech Represent Next Growth Frontier for Nigeria -CSL
Given the significant record level uptrend in reported performance in the segment, analysts said payment industry, financial technologies services represent the next growth frontier for Nigeria.
CSL Stockbrokers Limited made the submission in a commentary on the development.
Recent data from NIBBS showed solid growth across the various e-payments channels in the first 9 months of 2020.
Reacting to the recent data from the Nigeria Inter-bank Settlement System, the firm said payments industry in Nigeria continues to demonstrate promising growth.
NIBSS Instant Payment (NIP) transactions recorded a healthy 39.4% and 66.8% year on year growth in transaction value and volume to N105.3 trillion and 1.3 billion respectively.
For POS transactions, total transaction value and volume grew 185.7% and 42.7% year on year respectively to N6.4 trillion and 440.9 million respectively.
The most impressive growth was recorded in Mobile Inter scheme transfers category where transaction value and volume grew 311.1% and 341.0% to N1.9 trillion and 88.2 million respectively.
CSL Stockbrokers said the sustained growth in e-payments transaction volume and value in Nigeria evidences increased adoption of technology in payments and cash transfers by the Nigerian populace.
This was driven by increasing internet & mobile penetration as well as investment by banks and other payment-based fintechs in payment technology infrastructure.
The remarkable rise in Mobile interscheme transfers has been supported by the pandemic which has made many Nigerians resort to banking apps and USSD transfer channels to transfer funds, analysts said.
Furthermore, CSL Stockbrokers noted that recent lifting of covid-19 restrictions has led to recovery in NIP transactions and POS transactions.
Going forward, the firm stated expectation that the e-payments industry will continue to record significant growth even beyond the pandemic.
“In our view, the payments industry and the Fintech ecosystem as a whole represent the next growth frontier for Nigeria.
“This is already being seen with foreign capital flowing into the sector for example Stripe’s recent US$200m acquisition of Nigerian-based payment company, Paystack”, CSL Stockbroker explained.
Read Also: IMF says Sub-Saharan Africa Economy will Recover 3.1% in 2021
E-Payment, Fintech Represent Next Growth Frontier for Nigeria -CSL
