Electronic payment adoption in Nigeria is growing but remains limited by infrastructure challenges and varying levels of digital literacy. While urban centres see higher acceptance, rural areas face obstacles like low internet access and a preference for cash transactions. However, e-payments adoption in rural areas remains very low compared to urban cities.
In a brief chat with Silifat Usman, an e-payments solutions expert, about the level of penetration of e-payments in rural areas, she mentioned the reasons for the drawbacks of e-payments in some parts of Nigeria and the possible solutions.
Why is there a low level of e-payments penetration in rural areas?
The implementation of e-payments in most rural areas is being impeded by the unavailability of important elements such as ICT infrastructure, internet facilities, and other important elements. Another factor I believe is a challenge is the level of awareness in rural areas. There is a need for more awareness about financial inclusion and literacy initiatives.
Are there hopes that e-payments would penetrate rural areas in Nigeria in a few years to come?
If you look at the trend, year in, year out, there is steady growth in the adoption of e-payments channels in Nigeria. In 2017, e-payments channels recorded over N104 trillion, while in the subsequent year, 2018, it increased to N138 trillion, and that’s about a 32% increase in 2018.
If you look at the first quarter of 2019, a total volume of 557,083,712 transactions valued at N34.02 trillion were recorded as data on e-payments channels in the Nigerian banking sector, according to Statista.
Definitely, it would cover the rural areas in a few years to come. There are initiatives from both private and public sectors in raising awareness and expanding access to e-payments, but there’s still a gap to bridge. With the continued push towards digital financial inclusion objectives, I believe e-payments penetration will steadily increase, especially as mobile banking and digital financial education become more widespread.
What are the positive impacts or contributions of e-payments in Africa?
E-payments have transformed financial inclusion in Africa, making transactions more accessible and transparent. They reduce reliance on cash, increase transaction security, and enable businesses to operate more efficiently, especially in high-fraud markets where physical cash can be risky.
Digital card services, like those I helped launch recently, allow for secure, efficient, and scalable transaction solutions. Additionally, card payments support the growth of e-commerce, expand market reach for businesses, and ultimately boost economic growth by connecting more people to financial services.
To expand the frontiers of e-payments, what areas should tech and business leaders focus on?
Tech leaders should focus on three areas: infrastructure, education, and innovation. First, investing in reliable infrastructure—like improving internet access and transaction security—is essential for a smooth user experience. Second, educational initiatives to promote digital literacy and explain the benefits and security of card payments can increase user confidence. Lastly, innovation, such as the digital banking and fraud prevention solutions we deployed at DLocal and 3Line, can make card payments more accessible, user-friendly, and secure, especially for first-time users in rural areas.
Apart from e-payments, is there any other area you have explored and what are the impacts on the intended target?
I have also led the development and deployment of an HRIS platform designed to transform the human resource and talent management processes for a client. Utilising modelling tools to map out accessible user requirements and create intuitive interfaces that aligned with business goals. By integrating artificial intelligence into the platform, we automated key HR functions such as recruitment, employee data management, and performance appraisals. This significantly enhanced efficiency, reduced manual errors, and improved the decision-making process for the firm.
The HR teams experienced improved efficiency and accuracy, while employees enjoyed faster access to information, smoother onboarding processes, and a more transparent appraisal system. Additionally, features like automated background checks enhanced trust and reduced risks such as identity theft or credential fraud. Ultimately, my contributions led to a more efficient, secure, and employee-centric HR ecosystem within my space.