E-PAYMENT: ATMs DOMINATE VOLUME, NOT VALUE

In spite of the tough times Nigerians continue to patronise e-payment channels increasingly but more through ATMs in terms of volume.

According to the e-payment channels statistics for the third quarter to September released this week by the National Bureau of statistics (NBS), there was 17.8% growth in volume of transactions to 23,888,9940 within the period compared to quarter two.

This compares favourably with only 8.59% growth recorded in volume of transactions in the second quarter.

In terms of value though, the quarterly growth rates were farther apart as third quarter value came to N18,156,886m, up 23.5% compared to 11.1% growth in the second quarter.

ATMs remain the dominant channel patronised but only in terms of volume, not value of transactions.

Within the third quarter, ATMs accounted for 65.8% of volume, down slightly on 67.2% in quarter two and 66.8% in quarter one.

In value terms, however, ATMs accounted for only 6.87% of total transactions in third quarter representing continued slide from 7.72% and 8.09% in second and first quarter respectively.

On the other hand, interbank payment locally (NIP) accounted for more than half in terms of value but not up to 17% of volume.

In the third quarter, NIP accounted for 52.8% of e payment, considerably down though on 59.4% in second quarter and even first quarter's 57.7%.

Meanwhile, its share if volume rose steadily from 13.2% in the first quarter to 15.6% in second quarter and then, 16.3% by the third quarter to September.

What NIP lost as percentage share of value was gained by external fund transfer (NEFT) especially in the third quarter while increasing volume share marginally each quarter.

NEFT share of value of transactions rose to 30.1% in third quarter, much higher than 20.7% and 20.8% in second and first quarter respectively.

Mobile money  recorded  impressive 32.6% and 25.7% increase in value and volume respectively in the third quarter but only volume made impact on the the total for all channels.

In the first quarter, mobile money channel had accounted for 7.54% of volume but this dived to 4.26% in the second quarter as 38.7% drop in its volume was recorded.

By the third quarter, however, its volume share recovered to 4.55% still behind NIP and ATM. Its value grew quarterly though.

A similar third quarter recovery occurred in internet payments but in both volume and value. Volume of transactions through the internet rose by 32.7% in third quarter compared to 2.58% drop previously while its value increased by 17.1% just about the same percentage it lost previously.

POS patronage maintained steady quarterly growth in both volume and value with volume rising by 17.9% and 15.7% in third and second quarter respectively.

In terms of value, POS recorded 16% and 13.1% growth in third and second quarter respectively but it may be a while before it could displace any of the three leading channels in volume or value.

As for payment through cheques, marginal quarterly growth in volume was accompanied by more marginal quarterly drops in value.

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