By Laju Iren

It would definitely be out of place to say that the just concluded Card, ATM and Mobile Expo 2015 which held in Lagos recently did not live up to its name. However, a mere observer would wonder why for a three-day event called the ‘Card Expo,’ the emphasis was not just on the physical, plastic cards but  also  on contactless, cardless payments as well. One major theme that seemed to run through the programme from the opening ceremony down to the various forums and payment pitches is this: the future of the card just might be cardless.

Mastercard’s Vice President and Area Head for West Africa, Omokehinde Ojomuyide is quick to say that the stakeholders must begin to think digitally. Her words: “Everything affecting everyday life will soon be a payment device. The lines between digital and physical are blurred. The future of payments is digital. Mobile is just one way.”

There were indeed many ways showcased at the Expo. And that must have pleased the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, who said the CBN was particular about creating a conducive environment for innovation, which is essential to achieving our vision of a payment system. His words:

“We do not view innovation as an enemy of regulation, rather we seek to achieve payment system development and widespread adoption through innovative payment system solutions. Our vision is the enhance the payment system to facilitate economic activities by providing safe and efficient mechanisms for making and receiving payments with minimum risks to the Central Bank, the payment service providers and the end users.”

Emefiele, represented by the director of the CBN’s Banking and Payment System, Mr. Dipo Fatokun said that the apex bank’s vision of the development of the country’s payment system is along eight specific verticals which include: Smart Cities, Agriculture, Transportation, education, e-payments, Government Flows, Health, Direct Debits and Hotels and entertainment. These are anchored on the evolution and development of e-payment solutions. We therefore expect innovations to be in tandem with our vision of supporting these verticals.

He added: “We are creating an environment to boost innovation rather than stiffle it. Innovators can therefore rest assured that we will bring about policies that will enhance competition, collaboration and cooperation in the payment ecosystem in Nigeria.”

Secure ID’s new token card is definitely one that will enhance competition among stakeholders.   Managing Director, Kofo Akinkugbe speaking on the innovation said: “It’s like a normal card. When one needs to do a transaction, there is a button on the card which one card press and then receive a one-time OTP. So instead of carrying your token around, or waiting to receive an OTP on your phone, it is an all in one card. We are trying to sell this to the banks now.”

“Also, since we are entering into the contactless world, we have an Near Field Technology, NFT card that you can stick to the back of your phone. So instead of carrying your card, you can use it to carry out transactions on any terminal that is set up to do contactless transactions.”

Even the banks are coming on board. Nnaemeka Ugochi, spokesperson for Unity Bank told Hi-Tech: “We are trying to see how we can revolutionize the payment economy to be more cardless, cashless, payment oriented. People can begin to embrace payments outside the use of cash. There are even newer technologies that can help people make contact without the cards. What we have done at Unity Bank is to embrace all these solutions.

At this expo, we are presenting both our card and mobile solutions. We are in partnership with Remita, so customers can pay online. With our mobile banking platforms, customers can make payments to all banks in Nigeria with a superior security platform. Customers can make all bill payments ranging from toll gates to cable subscription.” Sterling bank also showcased its new offering, a mobile kiosk currently being piloted at STB estates with which customers, irrespective of their banks,   can make payments.

Card solutions however, are still getting more and more innovative. Akin Adegoke’s start up, 360 degrees posh,   has about 250 plus merchants in Lagos and beyond, so that  holders of the company’s  reloadable pin card can  obtain discounts ranging from 10 to 50 percent from airlines, internet service providers, cinemas, telcos, fashion companies.   The company currently has about 1.2 million users.

Global Technology Partners, GTP,  also showcased its prepaid processing solutions and programs, which the company says are “secure, easy to implement, profitable and cardholder friendly.” Chief Executive Officer, Richard Bialek told Hi-Tech: “With our solutions,   workers abroad can send remittance back home, parents can load spending money on students cards, and companies can use cards to distribute pay roll.”

Etranzact also showcased Paylist, its new offering which helps users create a list of monthly payments they would like to make once   they are paid salaries. These payments are then automatically deducted from the user’s accounts and sent to the specified accounts.

Beyond the card manufacturers and the banks who often patronize them, there is  still the role of software. App Zone spokesperson, Mudiagha Umukoro says that 75% of commercial banks run one or more of his company’s software. His words: “We also offer Microfinance Banks access to electronic payment systems in such a way that is cost effective for them.

We scale down the cost and provide a situation where they can pay on a monthly basis instead of investing so much money at once. App zone’s new offering, Trade Porte is an application for retail commerce companies to be able to handle all their needs. It integrates into their account systems for them to be able to receive payments end to end.