20 Foreign Companies endorse Nigeria for E-Payment Services

[Richard Akindele]

About 20 active international e-payment firms have confirmed their intention to participate in the 6th edition of Card Expo Conference scheduled to hold from June 14 to 17, 2006, in Lagos.

The Conference Director, Intermarc Consulting, organiser of the annual event, Mrs. Onajite Regha, confirmed that these firms have registered and would exhibit at the three day event, adding that this latest development has shown that Nigeria is ready for e-payment services.

According to her, the firms who have confirmed their participation include: Altech, Fundamo, Itex Pty and ATM Africa from South Africa, Diebold and Oberthur from Dubai, Verifone from the United Kingdom, Muhlbauer from Germany and NPC from Egypt.

Others include Axalto from France, Lipman from Isreal, Orga from Germany and CardsNow from Malaysia

She said Lipman in conjunction with Itex Pty, south Africa, would showcase its ranges of POS terminals at the expo. Lipman's range of POS terminals comprises of a suite of NURIT and Dione product that incorporate top-level security, advanced technology and superb quality to provide retailers with a comprehensive, future-proof solution.

In the same vein, Muhlbauer, in conjunction with SecureID, their major representative in Nigeria, will be displaying latest state of the art personalisation competencies in bank, government and SIM cards at the show.

Axalto, the French firm and the world's leading provider of microprocessor cards and a major supplier of point-of-sale terminals, would also storm the expo with its range of high-tech products and services.

ATM Africa and their counterparts from China, GRG Banking Group, will also be at the fare to showcase the latest ATM technology using the Asian models that have worked successfully in south Africa.

With a full range of self-service, software, security/facility, and card-based products, as well as consulting and support services, Diebold, the foremost Dubai firm would storm the expo with its products and services.

With sales above 600 million dollars in 2005, Oberthur Card Systems one of the world's leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization.

It is interesting to note that these foreign companies are to join about 30 other reputable Nigerian epayment and card companies being led by Interswitch limited at the show.

Meanwhile Intermarc Consulting has announced that Card Expo 2006 will feature card, e-payment, interoperability integration, switching and new business.

Regha said the Expo Conference which is specially being put together would afford attendees the benefit of understanding the key advancement that would drive the future of e-payment services globally and nationally.

The Card Expo will also give participants the opportunities to participate in about nine different fora with 40 presentations. The forums include the following.

Card and e-payment forum: this is designed to give participants a better understanding of how to make money from card business. Some of the topics to be examined are: card payment business driver, e-banking channels for mass market, post consolidation e-banking space, securing card to exploit the business opportunity in the remote and un-banked community.

Interoperability integration forum: this forum is updated to bring to fare the merits of economics of scale in technologies convergence. Topics to be examined include: interoperability and convergence as key to maximizing market potentials and growth; interoperability standards and the enabling framework and payment system interoperability: a win-win model.

Switching forum: though there are several switches in Africa, yet most card transaction are primarily off-line. This forum would seek a way to create more value for customer in a networked environment.

Topics to be looked art include, exploring new markets for multi-application cards and multi-purpose channels, using online POS terminals as building tools improved merchant retention and understanding the concept of leveraging added services on existing infrastructure.


ATM forum: this forum examines the issues with ATMs is Africa. New business forum: e-payment is gaining ground in the continent. But is it relevant to the people's social-cultural setting? Are there new applications that can be adapted to suit the purpose? This forum would examine enhancement of USB smartcard business case.

EVM & security forum: is EMV relevant to Africa. What is the updated on global implementation? What level of security do we need to protect consumer in Africa? The forum would examine the foregoing and treat such topic as global EVM drive lessons on EVM migration, building blocks for successful loyalty programs, smartcard security, biometric In Africa and secure personalization and identity theft protection.

SIM & Mobile services forum: there are big transformations in the roles and functions of SIM cards today. With 3G, what new applications and services can be expected from SIM? This forum would examine this question and more. Issues on mobile payment would also be discussed.

Source: This Day

[Richard Akindele]

Visa International, the world’s leading electronic payment company, has expended US$ 5 million (about N6.5 billion) so far in electronic cards manufacturing in its bid to promote the electronic payments systems in Nigeria.


The company has also projected a production of between 5 and 8 million cards within the next five years to fulfill its aspiration of bringing to Nigeria the significant benefits of a cashless economy.

Country Director for Visa International in Nigeria, Mr Gavin Young, who made known these facts in Lagos, said that already the company has entered into joint agreement with ValuCard Nigeria for the purpose of offering Visa products and services to no fewer than 15 banks belonging in the organisation’s fold..
The joint venture scheme which he said became operational in 2005 allows both organisations to develop the electronic payments in Nigeria adding that with the scheme, ValuCard through its member banks, will be able to offer their customers a wider range of products and services that comes with the strength of Visa’s global brand.

Young who spoke on the plans to push the organisation’s products into the Nigerian market, said the company strongly believes that the electronic and card payment industry would go a long way to promote economic growth and financial transparency in the nation’s financial sector. In his words, “the strategic alliance with Valu Card is a strong validation of one of the company’s core business strategies which is to continue its focus on expanding debit cards to the substantially under-banked and unbanked population in Nigeria."

According to him, the development of a world class electronic payment and card system in Nigeria would have numerous benefits not only to the government but also the business and people of the country. He pointed out that “research around the world has shown that when a country moves away from a largely cash based economy to an electronic payments based economy, there is a dramatic improvement in financial transparency, savings and investment, economic growth and government efficiency, factors of which serves to improve international standing and credit ratings of a country�.

The Visa regional boss also disclosed that the rollout of the Visa Cards in the next few months would be accompanied by an extensive educational campaign across the country to ensure that customers in all the member banks of the organisation understand the benefits of using a Visa debit card for purchase and transactions.
Visa is a service association owned by about 21,000 member banks around the world and all working to create payment solutions that suit the needs of every group in society.

The company’s operations are run locally in six autonomous regions of the world, one of which is Visa CEMEA covering Central and Eastern Europe, Middle East and Africa.
Worldwide there are more than 1 billion Visa Cards in over 150 countries with an annual card sales volume in excess of $3 trillion.

Source: Vanguard, Nigeria

[Richard Akindele]

Passportusa, a US based company has started negotiation with four Nigerian banks with a bid to partnering with one of them to pioneer the introduction of e-commerce based traction in Nigeria.

The company which is based in Houston, Texas said the project which is at an advanced stage of completion will open the US market to the Nigerian consumers who at the touch of a button in their computer or lap top would be able to access about 3,000 merchants in the US to place order for their products. The company is partnering with Visa, a Nigerian bank to be selected, as the four already approached are said to be asking for exclusive rights on the product, and DHL which will deliver the product.
According to Jeff Fashakin, the chief executive officer of the company, Passport usa will allow Nigerians order products on line from the US. The project has Africa market in mind but the start-off is Nigeria because of the huge market potential of the country. Fashakin said that his company is partnering with DHL for timely delivery of products ordered on line from America to Nigeria. He puts the delivery time at a maximum of five working days.

According to him, the mission of the company is “To deliver global e-commerce to the fingertips of the consumer on the African continent, ensuring this experience is pain and hassle free. Passport USA is delivering global e-commerce to consumers in Africa.

“In alliance with the right partners, Passport USA has put together a streamlined product that puts the buying power and all control into the hands of the consumer. The over 3 million online US merchants will no longer be inaccessible to consumers in Africa. Our customers akin to their American counterparts, will be able to shop online and enjoy the luxury of their products delivered directly to their door, no bottlenecks no hassles. Packaged with our product will be real-time customer support and care, first class security to guard against fraud and Customer Relationship Management (CRM), constantly providing the consumer with pertinent up- to- date market information such as prevailing prices and support�.

Fashakin said “No longer will the most current products be months away from the African consumer, no longer will e-commerce be foreign to African consumers, no longer will consumers in Africa lack the choice of products they want to purchase.When you have the Passport USA card you can reside anywhere in Africa and shop in the USA, you put the world in your hands�.

According to him The PASSPORT USA credit card will work like every other card works for online purchases with a few exceptions. The user/customer would have obtained their Instant issue Passport credit card from the issuing bank and supplied all relevant information including shipping address to the bank. The user logs on to the site they want to make a purchase from and selects their purchase, shipping method etc. In the billing address section of the web portal, the user will enter their billing address as was supplied by the bank when their card was acquired.In the shipping address, the user will enter a pre-defined address as supplied by the issuing bank when the card was acquired. Other relevant information that will be required by the PASSPORT USA service/card will be entered into an address field on the web portal. For each product order the consumer will be required to confirm your order and wait for your order to be shipped to you.

Passport usa will enable Nigerian buyers to by pass the usual requirement by US merchants for buyers to be residents in the US before shipment can be made. In this respect the goods ordered through Passport usa will be first delivered to their US address before they are shipped to the buyer.

Source : Vanguard

[Richard Akindele]

The electronic method of payment, or generally called e-payment (e-commerce) has assumed a centre stage in economic activities of countries of the world. In its bid to catch up with this trend in the world Nigeria has adopted the e-commerce.

However, the snag for now, the suspicion e-cards linked Nigeria is being treated with. So what is the future fo e-payment in Nigeria. Sunday Vanguard spoke to e-payment experts and stakeholders. Excerpts:

NIGERIA gold-spot in Africa, says Piet Cooreman, Distribution sales director, Europe, Middle East and Africa for Diebold, an American company that manufactures and supplies Automated Teller Machines (ATM)
“We have seen that Nigeria is one of the gold-spots in Africa. It is going to lead the biggest market in the future if anything is going to happen very soon in Africa. That is why we want to be here —we need to be here — because this is a real, big potential. We have already set the first step and we see the future of e-payment and e-commerce business really very bright here.�
It is a very big one, unlimited, says Afro Vilgoen, Manager, commercial crime risk information, Sabric, South Africa

“The future of e-payment business in Nigeria is a very, very big one. I think things are going on very very, well here. This is my first time to be in Nigeria and I’m impressed by the people here with their wide range of knowledge and interest in the global economy. Fortunately, from China and every other part of the world, everybody is becoming involved in the Nigerian economy. This is very positive. The future of e-payment industry in Nigeria is unlimited in terms of potentials.�

Changes in banking sector make e-solution possible, says Tony Elumelu, Chairman, West Africa Bankers’ Association (WABA) and CEO, United Bank for Africa (UBA).

“The key changes in the banking industry, not only in Nigeria but in Africa, has been the driving force for the adoption of e-solutions for retail banking. Not only that, customers are getting more sophisticated and, therefore, demand alternative delivery channels. As a result of consolidation, banks now have larger capacity and more emphasis is now on retail banking. So, banks have been able to use e-channels which have made the use of e-cards, POS, mobile phones for banking activities in Nigeria possible.�


It is a bright future, says Prof. Turner Isoun, Minister of Science and Technology
“The future e-payment industry in Nigeria is indeed a bright one. The e-payment conference which was staged in Nigeria has the potentials of becoming a technology driven, market-oriented and private sector -led regional powerhouse. Government has leveraged information technology to help transform Nigeria’s economy and help it become a driving force in the African economic renaissance. You will recall that Nigeria successfully launched low orbit satellite - Niger Sat I in 2003 and preparation is in top gear to launch the second satellite: a Telecommunication satellite early next year. This will boost the country’s communications with the rest of the world and jumpstart the full utilization of smart card in all sectors of our economy.�