Stitch’s Post

Virtual accounts for payments and collections have transformed digital payments in Nigeria and Africa. This innovation began at Wema Bank in collaboration with Flutterwave in 2020. The implementation of this initiative has significantly reshaped the payment landscape, superseding POS, MCash, and QR payment methods as preferred choices among digital payment providers.  To explain its operation, a unique three-digit prefix (e.g., 901) is allocated and handed over to fintech partners, who then add seven digits to make it compliant with the Nigerian Uniform Bank Account Number (NUBAN) format. For instance, an account number could be 9011234567. Each fintech partner is assigned a prefix that distinguishes incoming transactions, enabling streamlined processing. When a transaction initiates, a logic is triggered within the system to perform a name enquiry specific to the fintech assigned to that prefix. Upon successful name verification, the merchant's name associated with the virtual account is displayed. Subsequently, the transaction is fulfilled, and a transaction notification is sent to the fintech for onward communication to their merchants, confirming successful completion.   Notably, funds are credited to an internal account created by the bank for the fintech, emphasizing that the money belongs to the merchants managed by the fintech. It is the responsibility of the fintech to settle their merchants through the bank using provided APIs. Over time, there has been an increase in fraud cases related to virtual account transactions, primarily due to FinTech's deviating from established rules and policies. Key issues identified include inadequate KYC procedures before issuing virtual accounts, lack of account limit configurations akin to those in core banking applications, regulatory gaps, and misuse of accounts. Given these challenges, regulatory bodies such as the Central Bank of Nigeria (CBN) need to expand their oversight and audit capabilities to include fintechs, similar to commercial banks. It is essential to enforce stringent regulations and sanctions for violations and provide APIs to recover from fraudulent transactions. Additionally, integrating fintech operations through financial institutions can enhance security and operational efficiency.  Feedback, questions, and observations on these matters are encouraged and welcome. #nibss #cbn #CeBIH #wema #flutterwave 

Wema Bank Launches AlatPay to Digitize SME Operations And Lead Cardless Payment Revolution Wema Bank Plc., a leading Nigerian bank, has launched AlatPay, an instant digital payment solution aimed at helping small and medium businesses digitize their operations. Tunde Mabawonku Executive Director of Retail and Digital Business, stated that “the future of cards is cardless.” He explained that the payment landscape is shifting, and in the near future, traditional cards will be replaced by cardless tokens that customers can tap and go. Mabawonku emphasized that this is the future of payments, and Wema Bank is proud to be a key player in this transition through AlatPay, enabling merchants to carry out payments with ease. Read more👇 #wemabank #Alatpay #Smeoperatiom #cardlesspaymentrevolution #digitalbusiness #cardlesstokens Sylvanus Eneche, CFA Joseph Ayowole Akinola Ogungbayi

🌍 Unlocking the Future of Payments: Lessons from India and Brazil 🌍 In today's digital age, real-time payments (RTP) are revolutionizing transactions globally. South Africa has already embarked on this journey with Real time Payments, recently launching Payshap, and the UK have recently released a white paper on their National Payments Vision. However India and Brazil are the true trailblaizers in this field. Along with our global colleagues, we analysed how India's UPI and Brazil's PIX have transformed their payment landscapes, promoting financial inclusion and efficiency. They provide useful insights for how South Africa can enhance and expand instant payments and simultaneously increase financial inclusion. 🔍 Key lessons: 1. Integration with existing infrastructure: Integration into POS systems, payments wallets, and government payment portals is critical for success. 2. Create a User-friendly interface: A consistent and superior user face across Apps is critical to lower barrier to usage, and improves utilisation 3. Government support and regulation: Regulation is crucial to ensure security, privacy, anti-fraud services and consumer protection 4. Industry collaboration: Collaboration across banks, fintechs, Telcos and government were critical highlighting the need to create eco-system wide collaboration and benefit models. Dive into the full article to explore the success stories, regulatory frameworks, and technological innovations driving these RTP systems. 💡 https://lnkd.in/dRNpsJ4y #RealTimePayments #UPI #PIX #FinancialInclusion #DigitalPayments #SouthAfrica #Innovation

title:MoneyHash, which provides single access to payment services in MENA, banks $5.2M As merchants and companies launch online, they usually begin with one or two payment processors. However, as they expand into new regions, they may need to onboard more payment partners to address varying customer and regulatory requirements, facing several challenges in this process. This need has led to the emergence of companies focused on facilitating these partnerships. link:

💡 Insights on the Payment Service Provider (PSP) Industry in Nepal The digital payment landscape in Nepal is evolving rapidly, but not without challenges. One of the biggest hurdles faced by PSPs (Digital Wallets), is the lack of differentiation between mobile banking services and wallets in the eyes of consumers. Here's a snapshot of the current scenario: 1️⃣ Cost vs. Value Perception: Mobile Banking: Users are required to pay an annual fee for accessing services like fund transfers, utility payments, and more. Mobile Wallets: Offer similar services for free and often come with additional features like cashback, discounts, and rewards. Despite these benefits, mobile wallets struggle to sustain in the Nepalese market due to: Regulatory and Competitive Pressures: Wallet providers face high operational costs and intense competition, making it difficult to achieve profitability. 💼 What’s Needed for a Thriving Wallet Ecosystem? Policy Support: Regulatory frameworks that encourage innovation and reduce compliance burdens can foster growth. Collaborative Ecosystem: Partnerships with banks, telecom operators, and merchants can create a more integrated and user-friendly experience. As the demand for digital payments grows, it's crucial for stakeholders to address these challenges and unlock the true potential of the wallet industry in Nepal. #DigitalPayments #Nepal #PSP #MobileBanking #Wallets #Fintech #Innovation #FinancialInclusion

🇳🇬 From cash to cashless: the evolution of payments in Nigeria 🇳🇬 The payment landscape in Nigeria has seen a remarkable transformation, shifting from traditional cash transactions to a diverse array of digital payment methods. For high-risk industry merchants, this evolution presents both challenges and opportunities. Understanding and leveraging these new payment solutions can be key to staying competitive and ensuring secure transactions. Nigeria's journey towards a cashless economy has been driven by various factors, including increased smartphone penetration, improved internet connectivity, and supportive regulatory frameworks. Popular digital payment methods in Nigeria now include mobile money, internet banking, and Point of Sale (POS) transactions. Mobile money services like Paga, OPay, and MTN's MoMo have gained significant traction, offering convenience and accessibility, particularly for the unbanked population. For merchants operating in high-risk industries, adopting digital payments can mitigate many of the risks associated with cash handling, such as theft and fraud. Digital payments also offer enhanced tracking and reporting capabilities, making it easier to monitor transactions and manage finances. Moreover, with the rise of secure payment gateways and advanced encryption technologies, digital transactions are becoming increasingly secure, providing peace of mind for both merchants and consumers. The shift towards digital payments in Nigeria opens up numerous opportunities for high-risk merchants. By embracing mobile money, internet banking, and other digital solutions, these businesses can expand their customer base, streamline operations, and improve cash flow management. Additionally, the ability to offer multiple payment options can enhance customer satisfaction and loyalty. To navigate this evolving landscape and fully leverage the benefits of digital payments, high-risk merchants need expert guidance and support. At Paymuse Consulting Limited, we specialize in helping businesses identify and implement the best payment solutions tailored to their unique needs. Ready to transition to a cashless future? Contact us to explore how our expertise can help you optimize your payment processes and grow your business in Nigeria’s dynamic market. Send your message to 📧  info@paymentmuse.com 📧 #DigitalPayments #Fintech #HighRiskMerchants #Nigeria #MobileMoney #PaymentSolutions #CashlessEconomy #SecureTransactions #BusinessGrowth

https://lnkd.in/eNwkYGNH Interesting turn of events in Nigeria as "A change in consumer behaviour and macroeconomic conditions are leading Nigerian banks to issue local cards like Verve to customers, dumping international card schemes like Visa and Mastercard..." Not sure if players like UBX Tanzania Limited have seen this as an opportunity to start offering & supporting a locally issued card scheme... Customers in Tanzania, most of whom use cards to transact via bank's ATM, PoS or Agency networks, are indifferent to whether their card is international or local, as long as they can access their funds conveniently, fast, securely & at low cost/charges. The move to local card schemes from what I see, is mostly driven by banks & fintechs as they look to minimize the high costs of international card scheme partnerships. It'll be interesting to see how this plays out in our market & how the local card scheme will navigate operating challenges & competition from the more dominant Visa & Mastercard. Thoughts? #techcabal #banks #payments #cardschemes #fintech #ubx

The five highlights of the Philippine Fintech Report 2024 show the rapid growth of the Fintech sector in the Philippines, with a surge in digital payments and more than 300 companies innovating in various fields. The report states that the Philippines has surpassed its target of converting 50% of retail payments to digital by 2023, with digital payment transactions accounting for 52.8% of total retail payments. Despite the rapid growth of digital banks, profitability remains a challenge, with only two digital banks currently achieving profitability. The payments sector dominates among fintech companies, accounting for 35.4% in 2024. In addition, the Philippines has also launched a digital national ID card, promoting service delivery and inclusion, and made progress in advancing the Central Bank digital currency project. #Fintech #digitalpayment #digitalbanking https://lnkd.in/gVC_KJzh

Who owns Pakistan’s digital wallet throne? In 2008, Pakistan's financial services saw a major change with the launch of Branchless Banking (BB), bringing a digital revolution that transformed how millions access financial services. By the end of 2023, BB accounts reached 114 million—a growth of 18.1% from the previous year. Active accounts grew even more, jumping by 50.9% to 64.1 million, highlighting the increased use of digital finance. At the center of this growth are two major players: Telenor Bank's Easypaisa and Mobilink Bank's JazzCash. These digital wallets are widely used in Pakistan, each capturing a big part of the market. JazzCash uses its large customer base and reach, while Easypaisa, an early leader, has a vast network of agents and merchants. Their competition is driving innovation, but it raises the question: Who truly leads Pakistan’s digital wallet market? Both claim the top spot. VEON’s 2023 report calls JazzCash “the largest domestic fintech platform and most popular mobile fintech app in Pakistan.” Meanwhile, Telenor Bank’s report states that Easypaisa remains a top player in the country’s digital finance sector. #financialservice #financialbanking #digitalwallet #binance #bitcoinetf

++ Paymentology and SALAAM BANK Launch Waafi Digital Card in Horn of #Africa ++ Paymentology, the leading global issuer-processor, proudly announces its partnership with Salaam Bank’s Waafi, on the launch of its co-branded tokenised tap-to-pay digital companion card, and physical card, for Waafi mobile app users in the Horn of Africa- a first for the region.  "Mobile and digital wallets play a crucial role in the financial ecosystem in Somalia. Powering Waafi’s digital money app exemplifies our commitment to advancing financial technology in fast developing markets. We are excited to bring the first digital card to the Horn of Africa, paving the way for a future where digital and contactless payments are the norm." - Kirsten Wortmann, Regional Director for Africa, Patmentology "The digital first initiative is a testament to Salaam Bank’s dedication to innovation and customer-centric solutions in the East Africa region. Through our collaboration with Paymentology and MeaWallet, we are providing our Waafi customers with a next-generation, secure, and convenient payment solution that meets their evolving needs." - Abdiqani Hariir Ismail. Deputy General Manager, Dara-salaam bank #techafricanews #africa #eastafrica #fintech #digital #card #payment #solutions #nextgen #secure #convenient