In 2008, the combined market for all types of mobile payments was projected to reach more than $600B globally by 2013, which would be double the figure as of February, 2011. The mobile payment market for goods and services, excluding contactless payments using near field communication (NFC) and money transfers, is expected to exceed $300B globally by 2013. Investment on mobile money services is expected to grow by 22.2% during the next two years across the globe.
Well, this is Nigeria, and the stats are growing – rapidly – as well, at least according to our very keen observations and the numbers released by the National Bureau of Statistics.
According to a report of electronic payment channels in the Nigeria banking sector Q3 2016; the report revealed that the Nigerian Banking Industry conducted 10,865, 558 mobile payment transactions in the third quarter of 2016, a significant increase from the 8,643,518 in the second quarter of 2016.
One would expect that since mobile banking is this widespread, internet banking should follow suit but we should also put in mind that poor internet services in Nigeria could limit us in that aspect, as well as inadequate access to internet facilities too.
Nigerians made about 3,526,717 web transactions in Q3, 2016 as opposed to 2,658,016 transactions made in the previous quarter. Meanwhile, the value of mobile transaction rose to N223,057,440,592 in Q3 2016 from N168,284,644,032 in Q2 2016, while the value of Internet banking rose to N30,763,588,632 in Q3 2016 from N26,275,951,568 in Q2 2016.
In developing countries mobile payment solutions have been deployed as a means of extending financial services to the community known as the “unbanked” or “underbanked,” which is estimated to be as much as 50% of the world’s adult population, according to Financial Access’ 2009 Report “Half the World is Unbanked”.
These payment networks are often used for micropayments. The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill & Melinda Gates Foundation, United States Agency for International Development and Mercy Corps.
I think in the next few years, with the growth rates of mobile banking and its internet counterpart, banks would be one of the most deserted buildings around us. I am forced to infer that Mobile banking/payment has come to stay – for as long as possible.