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Cashless transactions in Nigeria rose by 42.05 per cent to hit N395.47tn in 2022, according to new data from the Nigeria Inter-Bank Settlement System.

The new data revealed that Nigerians used cashless forms of payment to process N117.07tn more than the N278.39tn that was processed in 2021.

The N395.47tn processed in 2022 amounted to the total amount processed on the Nigeria Instant Payment System and Point of Sales terminals, which is how cashless transactions are recorded on the NIBSS.

This continued the growing adoption of electronic payment channels in Nigeria since its uptake began during the COVID-19 pandemic. The total NIP transactions for the period was N387.08tn and PoS transactions amounted to N8.39tn.

Total NIP transactions for the corresponding period of 2021 was N271.96tn and PoS amounted to N6.43tn. In two periods under review, December recorded the highest e-payment numbers. NIP and PoS transactions amounted to N42.03tn and N826.30bn respectively in December 2022.

In December 2021, NIP and PoS transactions amounted to N30.26tn and N699.75bn respectively. The NIBSS’s ‘Instant Payments – 2020 Annual Statistics’ report revealed that the pandemic changed the e-Payments landscape in the country and accelerated the adoption of instant payments with more people adopting electronic channels for funds exchange.

The growth of e-payment is expected to continue in 2023, with a new Central Bank of Nigeria favouring cashless transactions.

The new ‘Naira Redesign Policy – Revised Cash Withdrawal Limits,’ by the apex bank is set to curtail cash transactions. With a weekly withdrawal cap (without penalties) of N500,000 for individuals and N5m for corporates, cash transactions are set to slow down in the country.

It said, “Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”

According to a recent survey by Mastercard, 91 per cent of respondents in Nigeria use digital platforms to make financial transactions.

The report titled ‘Financial Inclusion – Connecting People to Finance, Health, and Education’ said, “There is now a greater awareness of mobile money, combined with a broader diversification in its uses. Consumers are now more open to using mobile money for more than just transactions.

“They are using credit, savings, and insurance products; in many cases, mobile money is being used to receive payments for services or products. Consumers are also paying bills and buying products using mobile money.”

First Publised on PUNCH