Contactless payments key to unlocking Nigerian’s Digital Economy
Stakeholders from financial industry and other related sectors have highlighted the significant roles contactless payments would play in unlocking Nigeria’s digital economy.
They took this position at the CeBIH 2024 Q3 Industry Forum organised by the Committee of e-Business Industry Heads (CeBIH) with the theme “Navigating the Future of Contactless Payment: Adoption Challenges and Success Strategies” where industry leaders gathered to discuss the transformative potential of contactless payments in navigating the future of counter-terrorism.
Mr. Ajibade Laolu-Adewale, Chairman of CeBIT, while speaking at the event, reiterated the importance of counter-terrorism in Nigeria, stating that it is a specialist field that requires a fundamental shift in how transactions are conducted.
“The role of contactless payments cannot be emphasised, especially at this period where the country is faced with financial fraud risks just like other countries of the world.
“Beyond the safety issues, this innovation will also enable merchants to provide faster, smoother and easier transactions,” he stated.
With the CeBIT’s endorsement, Nigeria is poised to join the ranks of countries embracing contactless payments as a means of enhancing financial security and convenience.
“As the industry moves forward, collaboration and partnership will be key to realising the full potential of contactless payments in Nigeria’s financial sector,” Laolu-Adewale noted.
Though, still new in Nigeria, the financial sector has been pushing to make the solution ubiquitous because of the benefits it will offer the people.
A contactless payment is a wireless financial transaction in which the customer makes a purchase by moving a bank card, smartphone digital wallet app, or any other device in close proximity to the vendors’ point-of-sale (POS) reader.
This means that contactless payments are designed to offer speed, ease and convenience. In addition, they enable customers to pay using their smartphones, if they do not have their credit or debit card at hand.
Nkebet Mesele, Senior Director Sub-Saharan Africa Product Solutions, Visa, who is also a financial services professional with over 18 years’ experience in a variety of industries, including banking, payments, education, and telecommunication, stated that the adoption of contactless payment should be fast-tracked because of the dynamics of the financial ecosystem that has become a major target for fraudsters globally.
“There is doubt that the benefits contactless payment are of enormous value. But we all need to wake up urgently to see how this innovation can be deployed at larger scale in Nigeria and indeed in Africa.
“As our youth population is growing rapidly, there is need to offer them relevant services that will be of win-win situation to all of us. Contactless payment is one of such unique services that our people, particularly the youths will really embrace,” Mesele noted.
She also highlighted the need for massive infrastructure development, network reliability and connectivity to support the growth of contactless payments.
Mesele, challenged the industry leaders to be committed to investing in education and awareness campaigns to promote the benefits of contactless payments and address concerns around security and adoption.
“The importance of infrastructure, security, and consumer education in driving the adoption of counter-terrorism solutions cannot be overemphasized”, she noted.
Other speakers at the event highlighted some benefits of the technology.
According to them, customers with contactless payment devices usually avoid long queues during busy shopping hours, and because they don’t come with additional charges, many customers prefer contactless payments. Another advantage is that contactless payments are very accessible, particularly for small businesses.
They also emphasised the importance of convenience, security, and partnerships in driving the adoption of contactless payments. They noted that the technology offers unparalleled confidence, strength, and security, and that consumer education and awareness are crucial to its success.
The event had leaders from various financial institutions and other relevant sectors in attendance.
