Expatriates regularly send money to Nigeria through formal and informal channels. Electronic payment systems use integrated hardware and software to enable the electronic payment of goods and services rather than cash or paper checks. Payment cards like credit cards, debit cards, smartcards, and stored value cards; electronic fund transmission; electronic checks; electronic cash systems like ACE Money Transfer and Bitcoins; digital wallets like ACE Money Transfer mobile wallet, Yahoo! wallet, and Microsoft account; and mobile phones like ACE Money mobile application are all examples of these systems. Electronic payment systems are not only convenient, but they are also necessary for economic progress. In contrast to the United States, where a wide range of electronic payment methods is available, most African economies are cash-based.
How Is It Difficult Or Easy TO Implement Digital Payment System In Sub-Saharan African Countries?
Developing a system for online money transfer to Nigeria and other African countries is necessitates a significant amount of paperwork, which may be both costly and inefficient. According to a Gallup, Inc. survey of 11 countries in Sub-Saharan Africa conducted in June 2012, around 80% of adults use cash to pay bills or send money.
According to a World Bank report from August 2014, “governments, consumers, and financial providers in Sub-Saharan Africa are still bearing the high cost of cash payments—costs associated with manual acceptance, record keeping, counting, storage, security, and transportation” due to the lack of digital-payment penetration in the continent. So, there is a need for a digital system for money transfer to Nigeria and vice versa.
What Is The Overall Development In Digital Payment System In Africa?
Emerging markets in Africa use digital technology to bypass traditional financial processes and process payments faster than developed countries like the United States. Electronic currency tokens for agent or ATM withdrawals, the issuance of virtual cards, and payments through SMS or email are among the innovations currently in use.
Furthermore, Abban points out that “transfers between banks may be made instantaneously in Senegal, Ghana, and Nigeria, and this has been the standard for some years now, in contrast to countries like the United Kingdom, where legacy systems may stifle such innovation.” ACE Money Transfer is known to be the most widely used and trusted money transfer system in most countries of Africa. Through ACE, you can send money to Nigeria online from 23+ developed countries of the world.