Remita, Others on the Cashless Race As E-payment Transactions Rise By 8%

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In the first quarter of 2019, electronic payment transactions rose by 8 % in value. This was revealed, in a data report, obtained from the Central Bank of Nigeria, (CBN).

CBN reveals that, on average, the monthly value of cashless transactions, through various e-payment channels, increased by ₦1.0 trillion, this year, bringing it up to ₦13.3 trillion.

This rise indicates that, annually, the volume of e-payment transactions, taking place in the country has increased by 8.1%.

Remita, alongside other e-payment platforms, like Central Pay, e-Bills Pay and Nigeria Instant Payment System, (NIP), led the cut on the cashless journey.

According to the CBN, the payment platforms, recorded 3.3 billion volume of transactions, in the value of N80.2 trillion in the first quarter of 2019.

In terms of the value of transactions, Remita had N9.8 trillion, followed by transaction of ₦3.2 trillion, through Automated Teller Machines and cheques with a volume of ₦2.3 trillion.

Since the introduction of the cashless policy in 2012, to limit the withdrawal and lodgement of cash, the Nigerian economy has seen an increase in E-payments transactions.

Last week, additional charges were introduced by the CBN, these charges, according to the CBN, will take effect, across the country, starting March 2020.

The charges would include a 3% fee for withdrawal processing and 2% on lodgements of cash amount, above ₦500, 000 for accounts owned by individuals, while on the other hand, corporate accounts would be charged 5% processing fees, on withdrawals and a 3% fee on lodgements, that are above ₦3 million, as released by the CBN.

Mr. Godwin Emefiele, the CBN Governor, stressed that the cashless policy is in the overall interest of the public, stating that, the policy would improve transparency, in financial dealings and reduction in advanced fee fraud.

“Indeed, it is in public interest to promote an efficient payment system, via the cashless policy, which also reduces the punitive process of cash processing, which is then passed on, to Deposit Money Bank customers. It is in line with the CBN quest, to adopt the international best practice and in line with international conventions”, Emefiele explained while speaking at the end of the Monetary Policy Committee, MPC, held on Friday.

Featured Image: Stearsng

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