Nigeria has seen a sharp increase in the adoption of alternate payment channels (APC) since launching its cashless policy in January 2012 – an initiative to encourage the use of electronic payment transactions, and to reduce the circulation of cash in the economy, reports Rototype International.
The self service banking solutions provider says that channels like point-of-sale (POS) terminals, credit card payments, internet and mobile banking, and the use of self-service automated teller machine (ATM) technologies have experienced widespread growth in the past two years.
With this implementation, the Central Bank of Nigeria (CBN) wants to achieve economic growth and modernization by realising the Payment System Vision 20:2020. It hopes to eliminate high occurrences of money laundering and crime rates caused by a cash-based economy.
CBN also hopes to help banks reduce the cost of cash, so that savings can be repurposed to provide banking customers with better payment options and greater banking reach.
A customer satisfaction survey conducted in April 2013 by the Nigerian banking industry showed that ATMs remain banking customers’ most used and preferred channel. London-based research firm RBR also reported that Nigeria will continue to experience one of the fastest ATM market growths globally until 2018.
Rototype has itself partnered with Orange Apple Technologies Limited (OAT) of Nigeria to introduce the Rototype cashless ATM – a self-service machine designed to maintain the familiar experience of a cash dispensing ATM, which can be shared amongst multiple merchants. OAT chief executive (CEO) Osato Izegbuwa believes the machine will command a large part of the e-payments market because of its shared ATM model.
Other APC models such as the POS not only require merchants to invest in a physical terminal, commit to a monthly subscription fee and levy their customers with a service charge – there is a settlement cycle of up to T+3 days. Hence, such models may prove unattractive amongst tier-3 and tier-4 (long-tail) merchants.
The Rototype cashless ATM is purposefully built based on a shared ATM concept whereby shoppers will be able to pay for purchases using their ATM card – thus eliminating cash handling between the shopper and merchant.
Rototype International Group CEO, Harres Tan, said; “Nigeria is now equipped with the right infrastructure and its people are ready to embrace technological advancements. We look forward to continue expanding our presence in West Africa through forward thinking companies such as OAT.”
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