Fintech posts strong performance as e-payment transactions rise 46% in February
By Joseph Ekeng
In the wake of the recent currency redesign which has made a lot of Nigerians unable to access cash, the Fintech segment appears to have taken advantage of the crisis to drive growth.
According to a recent report, the volume of electronic payments in the country shot up by 45.6% in February 2023 on the back of the naira scarcity. Some of the electronic payment brands that have made the most of the crisis to expand their operations include OPay, Monie Point, Palmpay etc.
However, despite the strong performance in February 2023, it was much slower than January where electronic payment volume peaked at 55% when compared to the same period in 2022.
According to the latest data from the Nigeria Inter-Bank Settlement System (NIBSS), the total volume of NIBSS Instant Payment platform (NIP) transactions increased to 787.9 million in February from 541.7 million in the previous month. It also surged on a year-on-year basis by 121.6 per cent from 355.6 million in the same period last year.
“The cash situation propelled the use of electronic payment systems. So, I am not surprised,” Damilola Adewale, a Lagos-based economic analyst said.
He added that the country saw a significant rise in the use of these electronic channels as part of a coping mechanism. “I would say the increased use of e-channels came on the back of the naira redesign policy.”
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