The global expansion of the internet has significantly contributed to the transformation of trade and transactions on electronic commerce platforms. The National Bureau of Statistics (NBS) recently released a new set of data which captures activities (volume and value) on electronic payment channels in the Nigerian banking sector. According to the data, N91.5m worth of transactions were carried out on the internet while the value of transactions on mobile payment platforms hit N442bn in 2015.
This year the volume of transactions on mobile platforms was highest in March at 5.2 million. However, it dropped significantly by 52% in July to 3.4 million.
Industry sources suggest that the purchase of mobile phones have declined by about 80% this year primarily due to the country’s current economic downturn which has resulted in a squeeze in consumer spending.
As for the internet payment channel, February also recorded the highest volume of transactions at one million which was worth N11.1bn. In July the volume of transactions on this platform dropped by 12% to 900,000 while transaction value stood at N9.1bn.
The cashless policy launched in 2012 by the CBN has gained considerable traction as increased traffic has been recorded on e-payment platforms since its launch. The policy is expected to enhance financial inclusion and reduce incidences of theft.
ATM transactions continue to be by far the dominant channel as the chart above shows, followed by Point-of-Sale (POS) terminals and mobile.