A new report indicates that online transfers are fast gaining ground in Nigeria, relegating Automated Teller Machines (ATMs) to the background.
The report attributed the trend to Nigeriaâs growing smartphone usage and mobile applications by banks and fintech for financial transactions.
Nigeria has seen a significant shift in how Nigerians carry out transactions, with online transfers surging to N2,610.5% in the past decade.
âThe Nigerian Payment Reportâ by Zone clarified how online transfers have replaced ATMs as Nigerians’ primary mode of financial transactions.
This surge in digital payments has led to a decline in the use of ATMs for transactions.
The report said that in 2012, during the launch of Payment Vision (PSV2022) by the Central Bank of Nigeria (CBN), the aggregate value of ATM transactions in Nigeria stood at N1.98 trillion, while the volume of online transfer payments stood at N31.57 billion.
According to the report, in the next 10 years, the country witnessed a boom in online transfers. ATM transactions hit about N32 trillion, while online transfers surged to N783.6 trillion, representing a 2,610.15% increase and a 43.78% yearly gain.
Data from the report also indicated that while the total volume of transactions rose by 36.26% from N10.32 trillion to N14.06 trillion in the same period, the total transaction value for online transfers rose sharply from N545.03 trillion in 2021 to N783.66 trillion in 2022, a 43.78% every year.
Leadership reports that recent data by the Nigeria Inter-Bank Settlement System (NIBBS) indicated that the volume of electronic payment transactions in Nigeria increased to N600 trillion in 2023, a 55% increase from N387 trillion in 2022, attributed to the rising adoption of digital payment platforms.
The NIBBS report said the growth shows an improved digital payment infrastructure, allowing firms to encourage online payments and reflecting growing customer confidence in digital platforms for P2P, e-commerce, and bill payment.
The report said:
TimesNow.com.ng earlier reported that Nigerian banks have lost a massive N9.5 billion to electronic fraud from January to August 2023.
The development comes as the Nigeria Electronic Fraud Forum (NeFF), on Friday, August 18, 2023, called for new standards and increased partnerships to curtail the rising cases of electronic fraud.
The Forum revealed this at its third-quarter general meeting in Lagos focused on New Strategies for Combating e-fraud in a Cashless Environment.
Wema Bank issued a warning regarding new banking cyber threats targeting Android devices.
The bank said the malware is called “Brokewell” and has cautioned customers to remain alert and never download.
Wema Bank explained that the malware is designed to steal sensitive information such as banking details and personal data, and is being spread through various means, including phishing emails and malicious websites.
A previous report by TimesNow.com.ng disclosed that in the past five years, Nigeriaâs financial industry has seen an increase in fraudulent activities and a growth in digital payment transactions.
The annual fraud rate spiked by 11%, from 44.947 cases in 2019 to 95,620 in 2023, with corresponding losses rising by 496% from N2.9 billion to N17.67 billion during the same period.
