Mobile Money Gets Boost as CBN Loosens Restriction on Telcos
With the review of the mobile money guidelines, which allows for the participation of the telecommunication companies, the adoption of this form of banking is expected to get a significant boost.
With the review of the mobile money guidelines, which allows for the participation of the telecommunication companies, the adoption of this form of banking is expected to get a significant boost.
Surveys had attributed the slow pace of adopting the mobile money services to the low public awareness on the payment transfer system. Another challenge had been low number of agents as well as inadequate infrastructure.
Already, three of the telecommunication companies in Nigeria have already applied for super-agents license to render mobile money services.
But the Central Bank of Nigeria (CBN) has stated that it decided to review its policy on mobile money to accommodate the telcos because it realised that they (telcos) have huge infrastructure and actually provide the enabling infrastructure for mobile money agents to work.
“The telcos have outlets and so they can come in as super-agents, which means, we can leverage on some of these infrastructure to provide mobile financial services and that is basically what we are doing. So, all outlets of the telecommunication companies are going to act as agents,” the Deputy Director, Banking and Payment System Department, CBN, Mr. Musa Itokpa Jimoh advised.
From July next year, the capital requirement for being a mobile money operator shall be N2 billion The CBN introduced mobile money services to provide basic financial services and create payment access especially to Nigerians without bank accounts, as well as to help drive financial inclusion in the country.
Mobile money is a tool for economic growth and development, if fully explored. It enables monetary transactions to be done on mobile phones through text messaging. Also, it serves as an alternative way of storing money, for both account and non-account holders. It reduces the risk of theft and loss of money as it does not involve the handling of cash.
Through this service, an individual can make money deposits, pay bills, transfer funds and pay for goods and services purchased.
Meanwhile, as a result of the challenge of frequent complaints of network failures being reported by points of sale (PoS) merchants, the central bank has taken steps to improve efficiency
Firstmonie, the mobile money platform of FirstBank of Nigeria Limited, has gone into a partnership with Mobile Media Info Tech Global Limited (MMIT) to commence a new mobile wallet capability that allows consumers to purchase services on international merchant websites.
This initiative is expected to enable online purchases, and apps download through the Firstmonie platform. Leveraging on its expertise in electronic payments, a statement from FirstBank said the financial institution was constantly exploring innovative ways of enhancing its service offerings to ensure products are well suited to its existing and potential mobile subscriber base.
“With the upswing in digital applications, Firstmonie subscribers can now directly pay for applications download from their mobile wallet. This has eliminated the limitation posed by daunting payment process, especially for the youth market, many of whom have no access to international payment cards and have been un-served within the global ecommerce space,” it explained.
On the heels of the partner- ship, Firstmonie and MMIT have launched the Aflix project - a mobile Video-On Demand (VOD) content provider that offers a wide range of streaming materials including international hit movies, series, music, children programmes, lifestyle, nature and science, and much more.
The Aflix VOD application, is available through the Google Play store, it allows consumers to stream content directly on their mobile devices and tablets on 3G/4G networks and WiFi. Nigerians can now enjoy a first-of-its–kind experience by paying for international digital content in local currency using the Firstmonie electronic wallets on their mobile devices. Through this partnership, FirstBank has again spearheaded the CBN cashless policy and financial inclusion for unbanked youths, as you do not even have to be a bank customer to use Firstmonie and enjoy the Aflix service.
The CEO, MMIT, Kim Fraser, while commenting on the initiative said: “MMIT is very excited about the launch of services with FirstBank’s mobile wallet. The ability to use an African based mobile wallet to transact with international merchants is a first in the alternative payments space, and MMIT is very proud to be working with First Bank of Nigeria on this initiative.”
Also, the Acting Head of Mobile Financial Services at FirstBank, Celestine Okobi, asserted that the bank was proud of the innovation.
According to him “this service will allow consumers to use global best app-based services and pay for such services with their Firstmonie wallet in naira. With this new development Firstmonie will be one of the payment options for digital content.”