As Nigeria prepare towards becoming one of the largest and powerful economy of the world by 2020 and with the Central Bank of Nigeria (CBN) encouraging a cashless policy in the country,Nigeria is moving into mobile money banking service.
As a result of this development, the CBN has approved eleven operating license on mobile banking with more to go. Apart from this, some banks like Guaranty Trust Bank (GTB) and United Bank for Africa (UBA) is partnering with MTN mobile network while Stanbic IBTC Bank and UBA are working with Globacom with plans of extension to First Bank and Eco Bank. The Globacom money service is also known as GloTxtcash.
The introduction of the mobile money service into the Nigeria economy will enable subscribers transfer money to any mobile number, send money directly from their mobile money account to another person with immediate effect , pay for goods, utility bills as well as buy airtime top up for themselves and others without having a bank account.
Apart from this, the mobile money encourage a cash-lite economy which would bring about positive transformation of payment into the nation’s economy.
Nevertheless, mobile money will not only achieve the country’s vision of a cashless society by 2020 which will take banking to the ‘unbanked’ population but it will also open a wife range of benefit and value added services to the banking sector including the Small and Medium scale enterprise.
‘The mobile money service would drastically changethe face of the communication and financial services in the country and provide a whole new and exciting experience to numerous customers’,the Chief Executive Officer of MTN, Nigeria, Mr Brett Groshen said during the launching of the mobile banking service of GTB.
With this in place, Nigeria is working towards a fulfillmet of a world payment report from RBS that forecasted that by 2013, mobile payment will represent 15% of all electronic transactions globally and overtake card-based transactions within the next ten years.