As commerce increasingly transcends national borders, the demand for seamless, reliable cross-border transactions has intensified.

In response, Verve has launched a deliberate continental expansion under its Destination Campaign, positioning itself not merely as a domestic card scheme, but as a pan-African payments enabler.

With over 100 million cards issued, Verve has achieved significant scale within domestic markets. The next phase focuses on enhancing interoperability across African corridors, with East Africa, particularly Kenya and Uganda, serving as the primary testing ground for this African Expansion Drive.

Vincent Ogbunude, managing director of Verve International, emphasized the strategic importance of African-owned payment infrastructure in facilitating cross-border commerce and reinforcing economic resilience:

“Africa’s economic potential depends on payments infrastructure that is designed for its unique realities. Verve’s expansion into East Africa goes beyond issuing cards, it is about creating a network of payment infrastructure that is secure, reliable, and purpose-built for the continent. By enabling entrepreneurs, SMEs, corporates, and everyday travellers to transact seamlessly across borders, we are ensuring that value remains within African markets, fostering economic integration, and demonstrating that Africa can build world-class financial systems from within.”

The choice of East Africa is highly strategic. The region’s mature digital banking ecosystem, robust regulatory frameworks, and vibrant commercial networks provide an ideal environment to validate cross-border acceptance and infrastructure integration.

Verve’s expansion model leverages a hybrid advantage, combining the reliability and local alignment of a domestic scheme with growing cross-border capabilities.

This approach allows African markets to transact regionally without excessive reliance on external settlement systems.

Significant progress has already been achieved. Key issuing partners, including FCMB, Union Bank, Jaiz Bank, Taj Bank, and Access Bank, have enabled cardholders to use Verve cards confidently beyond Nigeria.

On the acquiring side, partnerships with KCB, Equity Bank and others are embedding acceptance across East Africa’s merchant ecosystem, strengthening the practical infrastructure required for seamless regional payments.

Cherry Eromosele, executive vice president, group marketing and Corporate Communications at Interswitch Group, highlighted the tangible benefits this expansion brings to consumers, businesses, and regional trade:

“Our vision is to contextualise payments for African realities. By extending Verve’s trusted domestic infrastructure into East Africa, we are enabling consumers and businesses to transact across borders with the same convenience and security they enjoy at home. This expansion is not simply about issuing cards; it is about facilitating transactions and exchange of value, supporting regional commerce, and strengthening financial connectivity across the continent.”

Significantly, Verve has extended its reach beyond financial institutions to secure real-world merchant acceptance. Cardholders can now transact seamlessly at Kenya Commercial Bank ATMs and POS, prominent lifestyle and hospitality destinations, including The Carnivore Restaurant, Tamarind Hotels, Tamarind Dhow, Roast by Carnivore, Kengeles, and Social House.

These channels and venues serve as strategic touchpoints within the continent’s business and tourism ecosystems.

By ensuring acceptance in high-traffic, high-visibility locations, Verve transforms payment infrastructure into a seamless, lived experience.

This expansion is not about scale for its own sake, it is about relevance, adaptability, and reinforcing Africa’s internal economic connectivity.

As trade corridors deepen and mobility across the continent grows, interoperable payments are becoming indispensable infrastructure.

Through its East Africa rollout, Verve demonstrates that Africa’s financial future can be powered by solutions designed and built from within for African realities and scaled to meet continental ambitions.

The post Verve with 100 million Cards Issued Targets East Africa Expansion appeared first on Tech | Business | Economy.

This Memorandum of Understanding was signed at the MoMo PSB head office in Victoria Island, Lagos on Wednesday February 3.

Through this partnership, registered SMEs under SMEDAN will gain access to MoMo PSB’s digital solutions across multiple channels, including apps, POS, USSD, partner portals, and other tailored platforms.

These solutions enable merchants to accept payments through multiple channels, pay staff salaries, manage tills and multiple shops, and oversee core business activities from a single, integrated platform.

Participating businesses will also enjoy access to market opportunities within the broader MoMo PSB and MTN ecosystem, alongside capacity-building support designed to strengthen their operations and support long-term growth.

The partnership underscores MoMo PSB and SMEDAN’s shared commitment to empowering entrepreneurs with practical, accessible financial solutions that reduce operational stress, improve cash flow, and enable business growth. By combining SMEDAN’s extensive SME network with MoMo PSB’s digital financial infrastructure, the collaboration will drive meaningful impact across Nigeria’s SME ecosystem.

Speaking on the partnership, Usoro Usoro, the executive director, Strategy and Innovation for MoMo PSB said:

“This partnership with SMEDAN reflects our commitment to supporting small and medium-scale businesses with tools that help them operate more efficiently and unlock new growth opportunities. Through the MoMo PSB Business App, we’re making it easier for entrepreneurs to manage payments, increase revenue, and focus on growing their businesses profitably.”

Charles Odii, the director general/CEO of SMEDAN, also said,

“This partnership is about removing friction and making sure financial support reaches small businesses in a way that is simple, transparent, and built for real impact.”

The benefits of the MoMo PSB’s digital solutions are not limited to SMEs within the SMEDAN Ecosystem. SMEs all over Nigeria can also access these tools for growth.

MoMo PSB remains committed to bridging financial gap in Nigeria through strategic partnerships and collaboration.

The post MoMo PSB, SMEDAN Partner to Digitise Nigeria’s SME Sector appeared first on Tech | Business | Economy.

In a circular published on its website and signed by Rakiya Yusuf, director of the Payment System Supervision Department, the apex bank explained that the upgrade is essential to achieving Nigeria’s payments objective of ensuring standardised, high-quality data.

Referencing earlier circulars issued on July 17 and September 23, 2020, the CBN noted that all licensed operators must align with SWIFT’s global migration timelines.

“All payment transaction messages exchanged domestically or internationally must be formatted in ISO 20022 in line with CBN and SWIFT specifications.

“All Institutions shall ensure complete and accurate population of mandatory data elements, including payer/payee identifiers, merchant/agent identifiers, and transaction metadata,” it reads.

The CBN has set October 31, 2025, as the deadline for full compliance.

Additionally, the regulator mandated that all existing and newly deployed payment terminals must have native geolocation services enabled, with Double-Frequency GPS receivers for reliable tracking.

Terminals must also be registered with a Payment Terminal Service Aggregator (PTSA), providing accurate latitude/longitude coordinates of merchants’s or agents’ business locations.

Operators are further required to ensure all Point of Sale (PoS) terminals and applications are duly certified by the National Central Switch to meet the prescribed standards.

Existing terminals must be geo-tagged within 60 days of this circular, while new terminals must be geo-tagged before certification and activation.

The CBN announced that compliance validation exercises will begin on October 20, 2025.

The post CBN Mandates Banks, Fintechs to Migrate POS Messaging to ISO 20022 System appeared first on Tech | Business | Economy.

For the past three years, payZeep has been working behind the scenes to redefine digital payments in Nigeria. The company’s offerings range from Point-of-Sale (PoS) solutions to financial applications built for businesses, institutions, and government agencies.

The company stated that it has quietly established itself as a key player in the fintech space, leveraging innovative technology to drive financial inclusion and cashless transactions.

Describing itself as one of Africa’s fastest-growing fintech firms, payZeep aims to become the leading payment solutions provider. Its comprehensive suite of services—including payment gateways, portals, and applications—continues to meet the evolving demands of Nigeria’s digital economy.

Reflecting on payZeep’s journey, its Chief Executive Officer, Ayodele Adeluka, said, “Our mission at payZeep has always been clear—to make seamless transactions accessible to all.

“Over the past three years, we have worked tirelessly to build a robust payment ecosystem that empowers businesses and individuals alike. Our strategic partnerships, technology-driven solutions, and regulatory milestones position us as a trusted leader in the fintech space.”

One of its unique innovations is ‘Smallie’, a mobile point-of-sale (mPOS) device that has boosted digital transactions in Nigeria’s transportation sector. Smallie enhances convenience and simplifies financial operations by reducing reliance on cash.

As Adeluka asserted, all payZeep POS and mPOS devices feature contactless ‘Tap and Pay’ technology, allowing businesses and consumers to complete transactions without physical card swipes or cash handling. This ensures faster, more secure payments while addressing the growing demand for digital financial solutions.

payZeep also noted its key regulatory approvals, reinforcing its leadership in the fintech space. The company holds a Payment Solution Service Provider (PSSP) license for facilitating seamless online transactions, while Payment Terminal Service Provider (PTSP) license allows for deploying and managing POS terminals nationwide.

Again, its Agency banking approvals helped with the expansion of financial services, particularly for young people, ensuring wider access to banking without traditional branches.

Reaffirming its commitment to financial inclusion, payZeep has also partnered with the Amalgamated Union of App-Based Transporters of Nigeria (AUATWON), further expanding its impact in the mobility sector.

The post payZeep Eyes Leadership in Nigeria’s Payment Solutions Market appeared first on Tech | Business | Economy.

Industry watchers believe the partnership is a significant move to further enhance the availability of digital payment services to Nigerians and to further enhance the government’s digital payment agenda.

This collaboration will also leverage Moniepoint’s extensive reach and robust infrastructure to avail an innovative solution which allows users to make payments by tapping or hovering their contactless card or Near Field Communication (NFC) enabled device over a payment terminal or directly on compatible mobile phone devices.

Moniepoint, already a leader in driving digital payments and financial inclusion in Nigeria, will utilize its vast network and technological expertise to facilitate the rapid scaling of the AfriGO cards.

Known for its innovative solutions that empower small and medium-sized enterprises (SMEs) and individuals, Moniepoint has consistently demonstrated its commitment to bridging the financial inclusion gap and has committed to deploying 5 million AfriGO cards.

AfriGO aims to deepen financial inclusivity by utilizing innovative products, a customer-focused approach, and cutting-edge technology. By reducing the country’s dependency on foreign exchange (FX) for payment transactions and ensuring data sovereignty, AfriGO Card strengthens and empowers local businesses, creating new opportunities within the growing card business ecosystem in Nigeria.

“Our partnership with AfriGO aligns perfectly with our ongoing mission to engineer financial happiness for every Nigerian while driving convenience, transparency and security with contactless payments,” stated, Tosin Eniolorunda, CEO Moniepoint Inc. “The Moniepoint/AfriGO card is not just a product; it’s a vital tool that will extend our reach, particularly to those who have been traditionally excluded from the formal financial system. Building on Moniepoint’s impressive track record, this partnership will offer Nigerians a more affordable payment option while ensuring instant transaction settlement through AfriGO. Additionally, it will further drive financial inclusion across the country”.

He continues, “the benefits of contactless payments are far reaching and will be great for our ecosystem. There are mutual synergies in unlocking potentials by creating a better life through our services for all Nigerians and we can reshape the digital economy so everyone — individuals, financial institutions, governments and businesses — can realize their ambitions.”

Speaking on the collaboration, Mrs. Ebehijie Momoh, the managing director & CEO of Afrigopay Financial Services Ltd. (AFSL),  stated,

“This partnership is set to transform financial service delivery, particularly in underserved areas, by leveraging AfriGO’s innovative payment solutions. With AfriGO Cards, merchants and agents will experience seamless transaction finalization and instant settlement, leading to improved efficiency, better cash flow management, and reduced risk. Backed by robust technology infrastructure and effective liquidity management, AfriGO ensures smooth and secure operations, further enhancing accessibility and driving financial inclusion”.

She added,

“Moniepoint’s extensive agent network will play a key role in expanding this reach, supporting local businesses and delivering essential banking services, including purchases, deposits, withdrawals and money transfers. Together, we are creating a more connected and inclusive financial ecosystem, making transactions faster, more reliable and widely accessible to Nigerians.”

This partnership reinforces the industry’s commitment to offering advanced, efficient payment solutions while significantly giving a boost to digital payment adoption in Nigeria, offering a secure, local alternative to international payment cards and shaping the future of payments in Nigeria.

Moniepoint has been instrumental in transforming Nigeria’s financial landscape by providing reliable and accessible digital payment solutions.

Their agent network, spanning across the country, has significantly contributed to bringing financial services closer to underserved communities.

The company’s focus on empowering SMEs with reliable point-of-sale (POS) terminals and digital banking tools has fostered economic growth and financial stability.

The post Moniepoint, AfriGO Ink Partnership to Distribute 5 million Cards appeared first on Tech | Business | Economy.

During a visit to an ATM stand in Lagos, we spoke with a customer who shared that eight out of ten ATMs are either out of service or have no cash. “This Bank never has money in their ATM,” she said.

“Even when they do, it’s usually only until noon, and then they stop working. The only option is to go into the bank and make transfers yourself.”

Techeconomy engaged with an insider at one of Nigeria’s top-tier banks to understand why this problem seems unending. We wanted to know: Why aren’t banks keeping their ATMs filled? Do they deserve the sanctions imposed by CBN?

In response, the insider said, “That’s a broad conclusion for a bank that has over 800 branches. I’m not sure how many branches the customer has visited before arriving at that. However, I can tell you several challenges faced by banks in Nigeria and not just ours, but it is heavier on us because of our high number of branches.”

He continued, “Yes, there is a CBN sanction on banks when your ATMs are not dispensing. The regulatory body expects the bank to load their machines when there is an obvious epidemic in the sector called “POS.”

The PoS Epidemic: A Growing Concern

The PoS (Point of Sale) phenomenon has become a big issue in the Nigerian banking sector, contributing heavily to cash shortages in ATMs. 

With the high reliance on PoS agents across the country, many Nigerians are using them as alternatives to traditional banking transactions. However, PoS agents, who often carry large sums of cash for transactions, are now becoming primary players in the liquidity problems facing banks.

“PoS agents are constantly on standby at ATMs and business locations, to collect and buy cash from customers or businesses,” the insider explained. 

“While these agents may seem to help by making things easier and providing access to cash withdrawal or deposit, in the larger scheme, they’re creating problems. The fact is, businesses are becoming more reliant on PoS agents rather than making traditional cash deposits in banks.

“They are making things difficult for both the masses and the Banks.”

This has caused a drastic reduction in the amount of cash flowing into the banking system, leading to shortages at ATMs. It’s reported that in some urban areas, PoS agents have begun hoarding cash to capitalize on the high demand, further straining ATM services.

While the CBN sanctions are meant to encourage better service across ATMs, it’s still not clear how effective they have been. The insider acknowledged the CBN’s role in attempting to regulate ATM cash availability but also noted the complications faced by banks in meeting these demands, especially when dealing with the PoS issue.

“Yes, the CBN expects us to have cash readily available at ATMs, but what is the bank to do when there is a continuous shortage of cash in circulation? How many companies are still making cash deposits? Most businesses rely on PoS agents now,” the insider said.

According to the Nigeria Inter-Bank Settlement System (NIBSS), the number of PoS terminals in Nigeria surged by 129% over the past three years, with an increasing percentage of Nigerians using PoS services daily. This growth in PoS usage has greatly impacted the ability of banks to maintain sufficient cash flow in their ATMs.

This ATM cash shortage crisis is not an isolated banking issue; it is intertwined with Nigeria’s economic challenges. The scarcity of cash is just one symptom of larger financial challenges the country is facing, including inflation and the ongoing transition to a cashless economy.

The government’s vision of digital financial inclusion, paired with inflation and currency devaluation, has placed high pressure on the banking system. As cashless transactions become more prevalent, many Nigerians are still challenged with access to physical currency for daily needs. These economic factors have compounded the challenges banks face in providing adequate ATM services.

Addressing the Root Cause: PoS Regulation

The key to solving the ATM cash issue lies in addressing the root cause—the unchecked proliferation of PoS agents. While PoS services are undoubtedly improving access to cash for many Nigerians, the increasing demand and the role PoS agents play in withdrawing cash from the banking system are draining the liquidity needed to sustain ATM networks.

The insider stressed, “Before banks can begin to solve the ATM shortage, there needs to be a conversation around regulating the PoS sector. We need to ensure that businesses are encouraged to deposit cash back into the system, rather than hoarding it.”

“The menace of POS first needs to be tackled.”

Meanwhile, the apex bank had recently stated that “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”

The statement further read, “The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.

“The new policy on cash-based transactions (withdrawals) in banks, aims at reducing (NOT ELIMINATING) the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.)”

The post Exclusive: CBN Battles to Resolve ‘Cashless ATMs’ as PoS ‘Epidemic’ Hits the Financial Sector appeared first on Tech | Business | Economy.

These accessible solutions build confidence, encouraging people to store money in digital formats and explore other financial tools.

When empowered to engage meaningfully in the economy, individuals can fund small businesses, drive entrepreneurship, and contribute to local development.

Financial inclusion enables communities to go beyond survival and build resilience, helping them weather economic shocks, reduce poverty, and foster sustainable growth.

These opportunities create a ripple effect, strengthening economies at the individual and community levels.

Despite its established importance, access to financial services remains a critical challenge in many developing countries. Inadequate infrastructure and barriers like low incomes and high fees leave many in Africa disconnected from formal financial systems.

The scarcity of bank branches, ATMs, and digital networks, coupled with long distances to urban centres in some cases, restricts access to communities living in geographical and economic peripheries, perpetuating economic inequality and limiting growth opportunities.

To illustrate, only 49% of adults across sub-Saharan Africa own a formal bank account, though this figure varies widely between countries. For instance, in Ghana, 62% of adults have bank accounts; in Nigeria, the figure is 64%; and in Kenya, where mobile money has been a key factor in expanding access, it’s 79%.

Similarly, the availability of Automated Teller Machines (ATMs) per 100,000 adults varies significantly: in Nigeria, there are approximately 16.2 ATMs; in Kenya, about 6.9; and in Ghana, around 11.4.

It is crucial to note that Africa is vast, and the financial landscape is not uniform, as evidenced by the number of ATMs in South Africa, which had 43.6 ATMs per 100,000 adults in 2021. In contrast, developed countries tend to have a higher density of ATMs; for example, high-income countries have an average of 62.7 ATMs per 100,000 adults.

Internet usage also highlights these challenges. As of 2022, 70% of Ghana’s population used the internet, compared to 35% in Nigeria and 41% in Kenya. Nigeria and Kenya fall significantly below the global internet usage rate of 64%.

Such disparities highlight the importance of innovative solutions like agency banking. We’ve seen how effective it can be in places like Nigeria and Kenya, and it has the potential to improve financial access in other developing countries as well.

By relying on a network of authorised agents equipped with point-of-sale (POS) devices, agency banking can offer essential services such as cash deposits, withdrawals, bill payments, and money transfers.

Imagine it like a water distribution system. Instead of everyone having to walk several kilometres to a central source of water (the bank), smaller taps (agents) are installed throughout every area.

These taps provide the same clean water (financial services) directly to people where they live, saving time and effort while ensuring everyone can stay hydrated (financially included).

Agency banking in action

The agency banking model has gained traction in Nigeria due to its ability to offer convenience through proximity and responsiveness.

It’s no surprise that the most popular use for agency banking in the country is withdrawing and depositing cash. This has particularly seen an adoption uptick in the West African nation following commercial banks’ capping of withdrawals at ₦100,000 ($64).

Recent IMF data highlights this trend, illustrating the rapid expansion of non-traditional access points across sub-Saharan Africa, with mobile money agents nearly doubling from 2019 to 2023.

In Kenya, an agent network played a crucial role in the growth of M-Pesa by significantly expanding its reach and accessibility. By establishing a widespread network of local agents, M-Pesa was able to provide services in various communities, including rural areas where traditional banking infrastructure was limited.

These agents facilitate transactions, enabling users to deposit, withdraw, and transfer money conveniently.

The trust established between agents and the community also encouraged more people to adopt M-Pesa as a reliable financial tool, further enhancing its popularity and effectiveness as a savings vehicle.

Today, agency banking operates under the framework established by the Central Bank of Kenya, allowing commercial banks to partner with third-party retailers who serve as authorised banking agents. Over 30,000 retail outlets are currently operating as bank agents. Here, agent banking has complemented the success of mobile money platforms, as the proximity of households to agents is a significant factor in decisions to adopt mobile money. This further enhances access to financial services and expands credit availability and savings options for small business owners.

While agency banking adoption has been slower in Ghana than in other developing nations, it has steadily grown since arriving in 2013.

Partnerships between financial institutions—such as traditional banks, fintechs, and telcos—and local agents have enabled rural populations to access microloans and savings accounts, contributing to economic empowerment.

While a lack of access to financial services stems from various challenges, including poor infrastructure, low incomes, and a lack of trust in traditional banking systems, agency banking offers a compelling solution by decentralising service delivery and making it easier for people to perform transactions without the need to visit a bank branch or ATM.

Challenges and opportunity for growth

Despite its success, agency banking faces unique challenges, especially in the areas that need it most — rural and peri-urban communities. These challenges can be grouped into three key areas: operational difficulties, financial constraints, and regulatory inconsistencies.

Operational Challenges: Given the limited presence of banks or ATMs in remote locations, agents often face logistical hurdles, such as restocking cash supplies.

Additionally, they are prone to risks such as hardware or software failures, which can halt operations, and low levels of formal training, which hinder their ability to serve customers effectively. Fraud and counterfeit bills also pose significant risks, exposing agents to financial losses.

Financial Viability: First-movers — or organisations pioneering agency banking in new markets — often face significantly higher costs.

These include training agents, educating users, and building trust in communities unfamiliar with formal banking. However, after these initial investments, competitors can easily enter the same market and benefit from the groundwork laid by the first mover, often at a lower cost. This can discourage private entities from taking on the financial risks of entering underserved regions.

Regulatory Barriers: The lack of consistent regulatory frameworks across African markets leads to fragmented implementation. In some regions, agency banking faces stricter oversight, increasing compliance burdens, while in others, inadequate regulation creates gaps that expose agents and customers to higher operational risks, such as a lack of recourse mechanisms in cases of fraud.

Still, agency banking offers significant growth opportunities. Financial institutions can tackle these hurdles by investing in training programs that confidently equip agents to offer a wider range of services.

Upgrading network facilities and using advanced technologies, like biometric authentication and enhanced POS systems, can boost efficiency and security while minimising fraud risks.

Strengthening cash logistics networks is also essential to ensure agents in remote areas have the liquidity and support they need to meet customer demands.

Successful innovations in markets like Kenya showcase the potential. Biometric systems have increased security and reduced fraud, while countries like Ghana and Nigeria are exploring ways to link agent banking with digital wallets and e-commerce. These initiatives aim to expand services beyond basic transactions, providing access to credit, pensions, and insurance.

The Role of Governments and Public-Private Partnerships

Private sector-led agency banking has expanded successfully in urban areas, but rural expansion remains challenging. Unlike cities, rural areas have lower transaction volumes, dispersed populations, and weaker economic activity, making agent operations less profitable.

Rural areas often have unique financial systems that differ within and across countries. Expanding into these markets requires tailored strategies rather than a direct urban replication.

Regulatory barriers further limit private investment. In countries like South Africa, agency banking networks are dominated by large retailers and supermarkets, as banks prefer partners with existing infrastructure and the ability to meet compliance requirements. As a result, large retail chains operate in more commercially viable areas, with little incentive to expand into deep rural regions with low economic activity. Similarly, operational and compliance requirements may make it difficult for smaller organisations to enter the market.

To address these limitations, governments and regulatory bodies must play a key role in promoting agency banking by creating public-private partnerships (PPPs) that combine private innovation with public resources. India’s Business Correspondent (BC) model is a great example of how these collaborations can expand financial services to underserved communities.

The Business Correspondent (BC) model, launched by the Reserve Bank of India in 2006, utilised agency banking to address the distribution of welfare payments, ensuring payments went directly to the right beneficiaries and improved financial access in rural areas.

Tying welfare payments to the system helped educate the market on using financial services, which would have otherwise fallen on private first movers, easing their entry into underserved regions.

The BC model became even more efficient with the introduction of Aadhaar, India’s biometric ID system. Aadhaar-enabled tools like eKYC helped agents quickly verify customer identities, cut onboarding costs, and speed up service delivery. Interoperable agent networks enabled multiple banks to utilise the same infrastructure, extending services to remote areas.

By implementing smart policies, leveraging technology, and fostering shared resources, millions of underserved individuals gained access to essential financial services, providing useful insights for other regions.

Conclusion

Agency banking represents a transformative approach to bridging the financial inclusion gap in developing countries.

By decentralising access to essential financial services, it empowers underserved communities, fosters entrepreneurial activity, and cultivates trust in formal financial systems. As illustrated by its successes in Nigeria and Kenya, agency banking provides immediate convenience and promotes long-term economic resilience by enabling individuals to manage their finances effectively.

However, realising its full potential requires ongoing collaboration between financial institutions, regulatory bodies, and local agents to address infrastructure limitations and low financial literacy.

Through the power of agency banking, we can create more inclusive financial ecosystems that drive sustainable growth and ultimately improve the quality of life for millions in developing regions. The time to embrace and expand these innovative solutions is now, as they hold the keys to unlocking opportunity and fostering economic empowerment for all.

The post How Agency Banking is Transforming Financial Access in Developing Countries appeared first on Tech | Business | Economy.

ATMs, once the backbone of convenience banking, now sit idle, often empty, gathering dust, while POS agents offer the only real alternative for cash withdrawals. In a cash-driven economy, ATMs have become extremely unreliable for Nigerians needing cash.

This shift begs several critical questions. Are ATMs going out of fashion in Nigeria? Is the massive infrastructure investment in ATMs now a waste? And most importantly, why do ATMs rarely have cash since the infamous CBN naira redesign policy?

ATMs were once symbols of banking convenience. Their introduction in Nigeria in the early 1990s revolutionized cash withdrawals, offering 24/7 access to money without the hassle of entering a bank hall.

However, the story changed drastically after the CBN’s naira redesign policy in late 2022.

The move, which sought to limit cash circulation and encourage a cashless economy, led to a severe cash crunch. Even after the policy was reversed and old notes returned into circulation, ATMs never fully recovered.

While several factors contribute to the near-death of ATM cash availability in Nigeria, the CBN’s cash policy hangover tops the list.

The cash scarcity that began with the naira redesign created a shift in how banks handled cash distribution. Even after the policy softened, many banks still operate under the mindset of cash rationing, and ATMs remain dry.

Secondly, running an ATM is expensive. Each machine requires regular cash loading, security, power supply and maintenance.

With the high cost of diesel and frequent power outages, keeping ATMs functional has become a burden for banks.

Many banks prefer to direct customers to digital transactions or POS agents reducing the need for constant ATM maintenance.

Another reason is that ATMs are prime targets for fraudsters and criminals. Cases of card skimming, machine tampering and outright vandalism have discouraged banks from investing in more ATMs.

It appears easier, safer and maybe more convenient to work with POS agents, who assume the risk of handling cash.

In addition, POS businesses have exploded across Nigeria, filling the cash withdrawal gap that ATMs once occupied. With over 1.6 million POS terminals in the country, these agents are more accessible than bank ATMs. Banks themselves appear to encourage this shift by supplying POS agents with cash, while ATMs remain empty.

Furthermore, reports indicate that many banks struggle with logistics, making it difficult to restock ATMs efficiently. Poor cash management strategies, delayed cash deliveries and a lack of urgency in ATM restocking contribute to the ongoing crisis.

Yet, considering the millions of naira invested in ATM deployment, maintenance and security, the decline of ATMS feels like a massive waste of resources. Many banks invested heavily in ATM infrastructure over the years, only to see the machines fall into disuse.

So, while ATMs may not be entirely obsolete, their role has significantly diminished. Digital banking and mobile money are rapidly replacing the need for physical cash withdrawals. It is no surprise therefore to see banks now focusing on mobile transactions, transfers and QR code payments rather than cash-based transactions.

But all hope is not yet lost. To restore ATMs to their former usefulness and balance the cash distribution system, things must be done differently.

The CBN, for one, should enforce a policy that ensures banks prioritize ATM cash supply. So, just as they provide cash to POS agents, banks should be required to maintain a minimum level of cash availability in their ATMs.

Banks can also explore solar-powered ATMs to cut operational costs, especially in areas with poor electricity supply. Additionally, introducing deposit-taking ATMs, which allow customers to withdraw and deposit cash simultaneously, could improve liquidity and reduce the frequency of cash restocking challenges.

Moreover, improved security measures, including surveillance cameras, fraud detection software and real-time tracking can reduce ATM-related crimes and encourage more banks to keep their machines functional. Aside, many Nigerians now see POS agents as the only viable cash source but their withdrawal charges are a real burden. The CBN and banks should regulate these to ensure affordability.

ATMS may not disappear completely, but their role would undeniably continue to shrink. Digital transactions, mobile banking and fintech solutions are taking over. As Nigeria moves towards a more cashless economy, ATMs may transition from being the primary cash dispenser to backup options for emergencies.

For now, though, the frustration remains. The days of walking up to an ATM and effortlessly withdrawing cash seem long gone. And unless major reforms take place, the trend of empty ATMs will continue, leaving Nigerians with no choice but to pay extra at POS stands.

In the end, the real question isn’t whether ATMs are going out of fashion in Nigeria; it is whether banks and regulators are willing to fix the system or let ATMs fade into irrelevance.

*Elvis Eromosele, a corporate communication professional and public affairs analyst, wrote via: elviseroms@gmail.com

The post Are ATMs Going Out of Fashion in Nigeria? appeared first on Tech | Business | Economy.

In Q2 2024 alone, over 11,500 fraud cases were reported, involving ₦56.3 billion, marking a 1,784.94% increase in the total amount involved compared to Q1, according to the Financial Institutions Training Centre (FITC).

Total losses increased to ₦42.6 billion, an 8,993.04% increase from the preceding quarter.

Mobile, web, and POS-related fraud remain the most prevalent types, with cybercriminal activities involving external actors increasing by 5.20% and staff involvement in fraud cases rising sharply by 23.40% from Q1 to Q2 2024. 

But PalmPay is not sitting back on this. The fintech platform is rising to raise awareness of the urgent need for collective action to fight fraud and secure Nigeria’s financial systems.

PalmPay’s Initiative Against Fraud

In commemoration of the 2024 International Fraud Awareness Week, PalmPay, a leading digital financial platform in Nigeria, organised a community walk on 22 November in Lagos.

Themed “United Against Fraud: Building a Safer Future”, the initiative aimed to educate the public on fraud prevention and digital security.

Addressing participants, PalmPay’s managing director, Chika Nwosu, noted the importance of tackling fraud collaboratively:

“Fraud is more than just a crime—it is a systemic threat that undermines trust, compromises security, and disrupts progress. Its effects are far-reaching, impacting personal livelihoods and the integrity of businesses.”

He further highlighted the growing sophistication of fraudsters, leveraging vulnerabilities in digital payment platforms:

“Recent statistics from the Financial Institutions Training Centre (FITC) reveal that over 11,500 fraud cases were reported in Q2 2024—a stark reminder of the growing sophistication and persistence of these threats. These figures are more than numbers; they represent real people whose trust has been broken and whose finances have been compromised.”

Educating the Public on Fraud Prevention

During the event, PalmPay reiterated the lessons for fraud prevention, including safeguarding personal information, verifying suspicious emails, and refraining from disclosing sensitive information, even to close family members.

He stated: “You don’t need to open suspicious links. Verify them first. Once you have a suspicious email, report it and ask questions. We have built a robust system that cannot be penetrated by fraudsters, but the public must also avoid compromising their identity.”

PalmPay also stressed the importance of educating underserved communities where ATMs are frequently unavailable. According to a recent survey by the NDIC, 70% of ATMs in urban areas experience cash shortages, with rural areas facing even higher challenges.

“POS agents play a necessary role in bridging the gap in financial inclusion. While ATMs are limited by cost and location, agency banking ensures that financial services are accessible, even in remote villages.”

PalmPay Emphasises Collaboration with Stakeholders

PalmPay reiterated its focus on fraud prevention through strong collaboration with law enforcement agencies such as the EFCC and the Nigerian Police Force.

“We maintain a close relationship with all security agencies. Whenever there is an issue, we provide them with the necessary information promptly to address fraudulent activities,” Nwosu explained.

“Together, we can create an environment where individuals and businesses can thrive without fear, knowing that trust and security are at the heart of our digital world.”

PalmPay affirmed its intention to extend such campaigns nationwide, strengthening its mission to build a safer and more inclusive financial ecosystem.

The post PalmPay Leads the Fight Against Fraud as Nigeria Loses Over ₦42 Billion in Q2 2024 appeared first on Tech | Business | Economy.

This prestigious event which was hosted by the Central Bank of Nigeria (CBN) had in attendance, several key stakeholders in the financial services industry that include Deputy Governor, Financial System Stability, Central Bank of Nigeria, Philip Ikeazor, director-general, National Pension Commission (PenCom), Omolola Oloworaran, Country Manager and Area Business Head for West Africa, Mastercard, Folasade Femi-Lawal, and Chairman of Committee of e-Business Industry Heads (CeBIH), Ajibade Laolu-Adewale among others.

Themed “Inclusive Growth: Harnessing Inclusion for Economic Development,” this year’s conference brought together global experts, policymakers, and industry leaders to explore strategies for advancing financial access and fostering economic development.

Moniepoint’s stellar contributions and nationwide impact in promoting financial inclusion across underserved communities were celebrated alongside its innovative products and solutions that bridge gaps and provide a secure, fast and transparent way to access digital financial services .

In addition to this accolade, in recent weeks Moniepoint has received several other industry awards, further cementing its position as a leader in driving financial inclusion and economic empowerment across Nigeria.

Commenting on the awards and wins, Tosin Eniolorunda, CEO Moniepoint Inc, said,

“These recognitions underscore our commitment to engineering financial happiness via solutions that empower individuals, small businesses and communities at large. At Moniepoint, we believe that financial inclusion is not just a goal but a necessary foundation for sustainable economic growth and development. We are honored to contribute and support the Federal Government’s aspirations and agenda to become a trillion dollar economy by 2030 and we remain dedicated to making a meaningful impact.”

He continued,

“the laurels and accolades are a strong validation of the hard work and dedication that our DreamMakers put into powering the dreams of millions of Nigerians, and it will continue to fuel our passion for driving excellence in Nigeria’s financial services sector. It’s just Day One for us and we will continue to develop solutions that make financial services more accessible to all.”

Scoring an uncommon hattrick, Moniepoint Inc was listed for the third year in a row in the seventh edition of CB Insights annual Fintech 100, a list of the 100 most promising private fintech companies in the world and described as high-momentum companies shaping the future of financial services.

At the prestigious BusinessDay Banks & Other Financial Institutions BAFI Awards 2024, now in its 12th year, which highlights excellence and innovation within the financial services sector and celebrates the institutions that have set new standards in performance, customer service, and leadership, Moniepoint Microfinance Bank won the award for “SME Microfinance Bank of the Year” and Tosin Eniolorunda emerged as the Fintech CEO of the Year.

At the Phillips Consulting (pcl.) Digital Jurist Awards 2024, which celebrates the remarkable achievements of organizations that have exemplified innovation and excellence in leading digital transformation across various sectors in Nigeria, Moniepoint was recognised for Best Digital and Best Website in the Microfinance Bank sector, while winning the award for the Overall Best OFI in Digital Banking Solution Delivery (Vision Category) at the NEXUS 2024 Gala and Awards Night organized by Qore, a leading fintech infrastructure and Banking-as-a-Service platform provider.

Moniepoint Inc. is Africa’s all-in-one financial ecosystem, helping 10 million businesses and individuals access seamless payments, banking, credit, and business management tools since 2019.

As Nigeria’s largest merchant acquirer, it powers most of the country’s Point of Sale (POS) transactions. Through its subsidiaries, Moniepoint Inc. processes $17 billion monthly for its customers while operating profitably.

The post Moniepoint is CBN’s Financial Inclusion Champion appeared first on Tech | Business | Economy.