As mobile payment hit N10bn

The value of cheque transactions fell sharply by 53 per cent to N9.6 trillion in the first half of 2010 while value of electronic payment through mobile phones rose sharply to N10.3 billion.

The Central Bank of Nigeria disclosed this in its economic report for the first half of 2010.

The report said, “Cheque transactions were influenced by the recent developments in the electronic payments segment as evidenced by the trends in the volume and value of financial instruments cleared through the system during the review period. At 15,558,104 and N9,683.3 billion, the volume of financial instruments cleared through the system increased by 22.2 per cent, while the value at N9, 683.3 billion, declined by 53.4 per cent relative to the levels in the corresponding half year. The development reflected largely, the impact of the Federal Government directive on e-payment of suppliers/contractors and salaries of staff of Ministries, Departments and Agencies (MDAs) as well as the increased As in the past, in volume terms, Lagos (71.2 per cent) led the other clearing zones, followed by Abuja (7.4 per cent), Port Harcourt (2.8 per cent) and Ibadan (2.3 per cent). In value terms, Lagos also led with 64.4 per cent, followed by Abuja (8.6 per cent), Kano (7.7 per cent) and Port Harcourt (3.2 per cent).

“During the review period, the use of mobile telephones for payments increased in

both volume and value by 374.01 per cent and 6149.22 percent to close at

7,471,388 and N10.30 billion, respectively.

“Internet payments increased by 576.8 and 396.4 per cent to 4,339,535 and N47.6

billion in volume and value, respectively, in the review period. The increase was due

to the growing number of airlines and merchants that accept payments online

through their websites.

“The first half of 2010 witnessed an increase in the volume of on-line POS transactions,

while the value decreased. At 535,767, POS transactions rose by 0.2 per cent from

490,172, while the value of transactions fell by 13.2 per cent to N5.4 billion from N6.2

billion in the corresponding half of 2009.

The growth in the POS transactions was due

to the increase in the number of people and merchants using debit cards.