MOBILE PAYMENT INTEROPERABILITY IN NIGERIA: Plotting the Roadmap

MOBILE PAYMENT INTEROPERABILITY IN NIGERIA: Plotting the Roadmap

MOBILE PAYMENT INTEROPERABILITY IN NIGERIA: Plotting the Roadmap for Success December 2014 The Company NIBSS Plc 2 NIBSS Critical Stakeholder NIBSS is owned by all the Banks in Nigeria and the Central bank of Nigeria. 3 NIBSS Mandate

Provides a shared service/infrastructure for the Nigeria financial system 1 A payments processing Company for payments schemes (local & international) in Nigeria, and act as a settlement Company for both inter-bank and interscheme payments 2 3 4 5

Initiates and develops an integrated nationwide network for the electronic or paperless funds transfer and settlement of transactions. Provides framework for elevating the level of efficiency in funds transfer services generally NIBSS commenced operation in June 1994. 4 NIBSS Value Proposition NIBSS is the central utility for Nigeria Payments System OPERATOR

OF THE NIGERIA AUTOMATED CLEARING SYSTEM (NACS) INTERBANK PAYMENTS AND SETLEMENT SERVICES SHARED SERVICE INFRASTRUCT

URE NIBSSS VALUE PROPOSITION PAYMENTS TERMINAL SERVICES AGGREGATOR OPERATOR OF THE NIGERIA CENTRAL SWITCH(NCS)

E-PAYMENT AND ANCILLARY PRODUCTS & SERVICES NIBSS is a major driver of the Cash-Less Nigeria project and an enabler of e-payments. NIBSS has an established Training Institute. 5 The Nigeria Central Switch and Mobile Payment Interoperability 6

ARCHITECTURE OF THE NIGERIA CENTRAL SWITCH 7 International Remittances Banks Mobile Money Service Providers POS Terminals 8

GUIDELINE ON INTEROPERABILITY INTEROPERABILITY - A situation in which payment instruments belonging to a given scheme may be used in systems installed by other schemes. - The BIS Red Book The approved Regulatory Framework for Mobile Payment Services in Nigeria requires all Mobile Payment Schemes to be operable. All are required to connect to the NCS for this purpose. NIBSS has responsibility to provide Interoperability among the licensed Mobile Payment Operators and is pursuing this with vigour

9 OVERVIEW OF TARGETS FOR ACHIEVING INCREASED FINANCIAL INCLUSION Source: CBN National Financial Inclusion Strategy 10 MPO INTEROPERABILITY ON NCS 18 of the 22 licensed MPOs are connected and operating live with the NCS NIBSS operates a Mobile Payment Switch which facilitates real-time MPO to MPO, and MPO to DMB fund transfers. NIBSS is working closely with licensed MPOs and their association, to

grow mobile payment adoption in Nigeria 11 VALUE PROPOSITION The connectivity of MPOs to the NCS provides the following benefits : 1. MPO Interoperability - Fund Transfer Instructions originating from the subscriber of one MPO for the benefit of a subscriber of another MPO -

Uniform Merchant codes, to promote purchase 2. Cash-In / Cash-Load services - Payment into mobile wallets from DMB customer accounts 3. Cash-Out / Cash-Unload services - Fund transfers from mobile wallets into DMB customer accounts 4. Settlement Services 5. Industry Payment Analytics Integration of MPOs to the NCS has great potentials of growing mobile payment

adoption 12 OTHER VALUE PROPOSITION 1. Mobile e-wallet / ATM integration for card-less cash withdrawal 2. Mobile e-wallet / POS integration for receipt printing 3. Cost-effective link of (multi-operator) Agents to Scheme Operators 4. Electronic Bulk Payments from DMBs into mobile wallets e.g. Salaries 5. Direct Debits for micro-credit operations 6. Shared Agency Network NCS providing a Single platform or NCS making independent platforms interoperable

7. Facilitate Value-Added Services (e.g. Bill Payment) and other shared service opportunities among MPOs 8. Support for international remittances 13 THERE IS A STRONG COMMERCIAL CASE FOR INTEROPERABILITY 1. 2. 3. 4. 5. 6. 7.

The Nigerian society is diverse There is a large population 22 MMOs licensed No single dominant MMO Electronic payment adoption just picking up Mobile Payment adoption is very low MMO infrastructure is expensive, so is Agent recruitment A setting such as this requires MMO Interoperability to grow mobile adoption, grow transaction volumes and revenue for investors in the industry. Also MMOs need to explore and take advantage of other (noncompete) areas of collaboration to succeed shared dispute resolution system, shared call center, collocation, etc. 14

THANK YOU Nigeria Inter-Bank Settlement System Plc Improving the Nigeria Payments System 1230b Ahmadu Bello Way Victoria Island, Lagos, Nigeria Tel: +234 1 2716071-4 www.nibss-plc.com 15

Recently Viewed Presentations

  • Lesson 28 - Radical Functions

    Lesson 28 - Radical Functions

    (A) Pendulums: Periods and Lengths From the data below, determine the nature of the relationship between the Length and Period of a pendulum Length 1 2 4 6 8 18 Period 2.007 2.839 4.014 4.916 5.677 8.515 (A) Pendulums: Periods...
  • STRATEGIE DI FACILITAZIONE E ACCOMPAGNAMENTO NELLO SVILUPPO 0-3

    STRATEGIE DI FACILITAZIONE E ACCOMPAGNAMENTO NELLO SVILUPPO 0-3

    come ti chiami? ma chiamo marco! mi chiamo marco!i ?? arrivederci * lo sviluppo del bambino con la sindrome di down segue le stesse tappe dello sviluppo normale, solo piÙ lentamente. 1. diamogli il tempo che gli serve se non...
  • ID3 Algorithm - cs.odu.edu

    ID3 Algorithm - cs.odu.edu

    ID3 Algorithm Allan Neymark CS157B - Spring 2007 Agenda Decision Trees What is ID3? Entropy Calculating Entropy with Code Information Gain Advantages and Disadvantages Example Decision Trees Rules for classifying data using attributes.
  • Diction Say What You Mean and Mean What

    Diction Say What You Mean and Mean What

    Diction Say What You Mean and Mean What You Say Diction = word choice Creates the writer's voice Creates the tone of a text Diction Levels of language: Formal- (proper) Language characterized by a learned vocabulary and grammatically correct forms;...
  • Split-Phase Busses - Ryerson University

    Split-Phase Busses - Ryerson University

    CS 258, Spring 99 David E. Culler Computer Science Division U.C. Berkeley Split-Transaction Bus Impact of just 2-stage miss processing SGI Challenge Overview 36 MIPS R4400 (peak 2.7 GFLOPS, 4 per board) or 18 MIPS R8000 (peak 5.4 GFLOPS, 2...
  • Introduction to Manufacturing - WIU

    Introduction to Manufacturing - WIU

    Introduction to Manufacturing Chapter 13: Rolling Rolling Process of reducing the thickness or changing the cross-section area of a long work piece by compressive forces. accounts for about 90% of all metals produced by metalworking processes.
  • Making Our Own High-Quality SMA Test Cables 1

    Making Our Own High-Quality SMA Test Cables 1

    Ruler in inches, with 0.1" (100 mil) increments. With the jaws closed, the dial should read 0.000". This would be 0.010" (10 mils)
  • Chapter 5 - Anxiety Disorders

    Chapter 5 - Anxiety Disorders

    involve spouse, decrease aid Possible Causes Psychodynamic: - anxiety from sexual/aggressive impulses leaking Cognitive: - Hypersensitive to internal states - Misinterpret symptoms - Perceive danger Behavioral: Classical conditioning Panic attack (US) -> fear (UR) Associate place (CS) with panic attack...