According to the press release, the mobile economy is driving the forefront of change in the ecommerce space. Nowhere is this more evident than in Nigeria, the largest country in Africa, with over 200 million citizens. Nigeria has the biggest economy in Africa and one of the fastest-growing online economies with business to consumer ecommerce market exceeding USD 15.4 billion. Besides, Nigeria's online shopping industry is forecasted to expand at an impressive compound annual growth rate of 20%, driven by increasing internet and mobile penetration rates.
Moreover, mobile money is a gateway to the Nigerian digital market. Low bank account penetration of 32% and high mobile acceptance of 87% led to the massive adoption of mobile money in the country. People use mobile phones as a digital wallet held by their mobile network operator, where transactions are authorised and recorded in real-time using SMS. The second most popular payment method in the African region is an instant EFT with mobile banking, where customers transfer funds directly from their bank account.
Payment-focused solutions have surged over the past two years, spurred, in part, by the central bank’s financial inclusion drive and favorable regulatory policies, including revised Know your Customer (KYC) requirements for lower-tier accounts and incentives to accelerate the development of agent networks across the country.
Therefore, Paga, Tingg, and other mobile money services will continue to challenge mobile banking applications and bank unstructured supplementary service data (USSD) channels for send-and-receive transactions and bill payments.
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