Instant electronic fund transfer, otherwise known as instant payments (NIPs), seems to be the darling of Nigerians when it comes to alternative cash payments in the country as about N22.6trillion passed through the platform in eight months.
Industry figures obtained from the Central Bank of Nigeria (CBN), from January to August 2016, show that Point of Sale (PoS), Automated Teller Machine(ATM) and Mobile Phone Money also witnessed an uptick in transactions unlike paper-based payments, like cheque, that took a downward spiral.
Analysis of the data shows that NIPs’ volume stood at almost 81 million valuing N22.584 trillion as against 7.774 million of cheques whose worth was just N3.85trillion. Instant electronics transfer (NIPs) is an e-payment platform that is instant, less than two minutes to be effective, and it is usually made for single or individual funds transfer, while its twin-platform, National Electronic Fund Transfer(NEFT), is best suited for bulk transfers like salary upload and takes a minimum of 24 hours to be effective because it has to go through clearing process. Read more