The Deputy Managing Director, Chams Mobile, Mr. Gavin Young, says Nigeria’s e-payment industry is one of the fastest growing in the world, but there is a need to increase the pace in the informal sector. He spoke with OYETUNJI ABIOYE.
How would you assess Nigeria’s evolving e-payment system and payment card industry?
It is thriving; the Central Bank of Nigeria is doing well in terms of injecting enthusiasm and coming up with certain principles which have taken off. At least, we have seen the Bank Verification Number project, for example, and what can be done when banks come together.
What do you think is responsible for the increase in payment card fraud in Nigeria, and how do you think this can be mitigated?
I’m not sure. I guess you need to talk to the banks or the CBN that knows about it because I’m not aware there is so much card fraud. But as in many countries, there is a high level of fraud. But there is the need for protection when you go to shop online frequently. And you need to monitor what is spent on your account through your mobile phone. There is also the need to change your password regularly as well.
Nigeria is an emerging economy, how do you see the payment card industry in the next five to 10 years?
We’ve seen it already in the last one year or two years. We have seen massive increase in electronic banking, and I expect that to continue. I expect that the objectives of the CBN for 2020 (Payment System Vision 20:2020) would actually be well exceeded. In every area and every segment of the population, there is massive growth and we’ve been experiencing it in electronic banking. I think the challenge is all more in the informal environment. I think one way (of addressing that challenge) is to reestablish distribution element. Once you get your market like this, some of the elements of buying goods to pay electronically will be present. Once this is done for those goods and services, I think people will adopt electronic payment in the informal environment as well. It’s certainly growing rapidly but the exact distribution of buyers of goods and services should be done more electronically.
You recently entered into a partnership with Skye Bank to develop virtual payment card, how will this impact the payment card industry in Nigeria?
As a mobile money operator, we needed a bank sponsor because to be within the financial services system in Nigeria, you need to be able to have a bank sponsor. You must be a Visa member to be able to do the sponsoring. It makes a lot of sense for us because we would not have operated that on our own.
Can you tell us what a virtual card is?
The virtual Visa card is an entirely digital payment card for online and mobile use, both locally and internationally. The card is unique in that cardholders get a full card image (the virtual card) on their mobile device, personal computer, or tablet, with a plastic card offered as an option if customers prefer.
The new payment system (introduced by Chams Mobile and Skye Bank) is expected to expand financial inclusion to millions of Nigerians by offering a low cost mobile banking solution, as the card is issued free and linked to a broad range of financial services. It also offers an online payment alternative for e-commerce savvy individuals, small businesses and corporate companies, membership associations, and more. The new Visa virtual card is available under the Kegow brand. Kegow is the programme and card brand of Chams Mobile Limited.
The virtual card payment solution, Nigeria’s first Visa virtual card payment solution, was developed with our company’s international joint venture partners Bancore AS (as the mobile financial services processor) and Global Technology Partners (as the Visa prepaid card processor).
What are some of the features of a virtual card as a payment solution?
It’s unique in that customers actually see an image of their card on their mobile phones, tablets and PCs, whereby all the essential features of a physical card are shown in its ‘virtual form’; card number, expiry date and CVV number, for example. This, for many customers, negates the need for a physical plastic card, although we offer plastic cards as an option for customers requiring such.
It’s also a very diverse product with a number of applications across various business and consumer segments. These include: co-branded cards for eCommerce companies, gift cards (as money can be credited to a recipient’s mobile phone), a naira card for Nigerians in diaspora as it can be issued online, a company allowances card and, as a payment card for retail distribution as it’s supported with a unique invoicing service.
Punch
No comments:
Post a Comment