The competition in the banking sector and the attractiveness of payment side of things, has given rise to Buxme, a payment app from Wema Bank.
However, mobile payment is becoming the buzzwords amongst banks and many startups who are developing over-the-top apps that allows users to pay for anything, send and receive money with ease.
However, the idea of banks getting fully into the business is not sustainable.
In the late part of 2015, Access Bank launched PayWithCapture, an app that makes use of QR codes to make payments at major supermarkets and retail venues. After a not too impressive outcome, the bank has relaunched the app as a digital bank that allows anyone to make payments, send and receive money with less charges as its USP.
GTBank has also commenced a massive campaign for its USSD-based mobile banking service called 737. The bank commenced a radio campaign that portrayed the platform as a product for anyone wanting ease of banking
The proliferation of payment apps is a recognition of the fact that digital payment is huge in Nigeria. In a Quartz report, in just two years since PayPal launched in Nigeria, it has seen the country rocket to its third largest mobile e-commerce market in the world with transactions of some USD610 million in 2015 via a phone. PayPal says it’s on course to hit USD819 million this year.
However, a me-too approach will further deflate the opportunities in the market. Banks are not known for starting independent tech projects successfully.
Instead of starting their own payment apps that is totally different from their mobile banking apps, banks should rather strike better deals with startups so that instead of dabbling into business that is outside of their business model and interests.
The business of building, marketing and running a profitable payment apps is very much different from running a commercial and or investment banking business. It has more to do with customer experience, product innovation, partnerships and personalised service.
