Failed transactions reduce e-payment to N37tn – NIBSS

By Felicia Nwosu

The Nigeria Inter-Bank Settlement System (NIBSS) has disclosed that the impact of the failed payment transactions witnessed in February in the ongoing cashless crisis resulted to a 4.83 percent decrease in the value of cashless transactions from N39.58tn to N37.67tn, compared to the previous transactions made in January 2023. According to NIBSS data, this came as the usage of e-payment gateways recorded a 41.29 per cent month-on-month increase.

In February, cashless gateways were used 901.46 million times, in January; they were used 638 million times. Despite an increase in usage, the total value of cashless transactions fell in February, indicating an increase in the number of failed transactions.

The inability of NIBSS to update its portal since 2020 has also made it difficult to efficiently report the number of failed transactions.

As the major payment switch in the country, the NIBSS records cashless transactions from the Nigeria Instant Payment System and Point of Sales terminals. In February, the total NIP (instant payments) fell to N36.79tn from N38.772tn in January.

The value of PoS transactions grew from N807.16bn in January to N883.45bn in February. Despite the scarcity of naira witnessed in the month, the data from NIBSS revealed that the value of PoS transactions grew from N807.16bn in January to N883.45bn in February.

The body also added that the surge in the use of mobile transfers, which serve as the primary payment gateway for many Nigerians, soared by 69.87 per cent from 108.14 million times in January to 183.69 million times in February.

While usage grew drastically, transaction value only grew marginally by 7.88 per cent from N2.37tn in January to N2.56tn in February.


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