CHEQUING OUT
NIGERIA ON TRACK TO CASHLESS SOCIETY
Abimbola Pinheiro , CEO of O3 Capital , delves into Nigeria ’ s swift journey towards a cashless society , examining how digitalisation is reshaping daily transactions , enhancing financial inclusion and fostering economic growth . Discover how innovative apps and credit solutions are revolutionising financial services and paving the way for a more secure , accessible and prosperous future for Nigerians .
How people in Nigeria live their dayto-day lives and do their business is changing beyond recognition and at an ever-faster pace . The reason ? The impact that digitisation is having on financial services and in particular the move to a cashless society .
The opportunities presented by the development of apps that work from smartphones have opened doors to new services and new financial providers that were never even dreamt of . The advantages that come from the changes are widespread and can be enjoyed at every level of society and in every corner of the country .
Does cashless mean safe ?
A cashless society makes purchasing and paying for many goods and services quick and , easy but most importantly secure and safe . The instantaneous payments that are possible using apps and cards through online terminals , phones tablets and laptops mean that large amounts of banknotes are now a thing of the past .
Only a few years ago Nigerian life was characterised by only the wealthy having credit cards and enjoying access to a relatively cash-free lifestyle . Everyone else was used to having the ordeal of carrying large wads of Naira everywhere they went , a tempting prospect for crime , and especially risky for small traders . Now those notes are rarely needed for everyday purchases , such as filling up fuel in a motorbike or car , buying the groceries – or transferring the rent and settling a bill . By 2022 , cashless payments in Nigeria hit $ 525 billion – increasing by 42 % year-on-year and it ’ s still rising .
Access to credit as a means of financial inclusion
While that shift in how we pay and are paid is in itself of great value it actually releases two further gifts we could hardly have expected – the ability for more people to have access to credit and an overall improvement in financial inclusion which liberates those on low incomes .
The ability to access micro-credit arrangements comes about because once people start to use online-based systems for financial transactions they build up a financial history they never had previously when they used cash . This record can demonstrate a person ’ s reliability in having www . intelligentfin . tech
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