Nigeria: Glo Moves to Reduce Unbanked Population, Backs Initiative

6 July 2018

Money Transfer

Telecommunications company, Globacom has thrown its weight behind federal government’s new cashless payment solution, mCash, in an effort to promote financial inclusion in the country.

This is coming as the Central Bank of Nigeria (CBN) has revealed that 37per cent of Nigerians are still unbanked.

mCash is a payment system that allows sellers or merchants to collect money for their goods and services from buyers electronically, using telecommunications infrastructure and mobile devices.

An initiative of the Nigerian Inter-Bank Settlement System (NIBSS) in conjunction with telecommunication companies, mCash targets extending e-Payment to low income earners as well as micro, small and medium enterprises (MSMEs) who transact businesses mainly in cash.

Head of Mobile Money Financial Business at Globacom, Esaie Diei, stated the firm was committed to complementing CBN’s efforts in reaching the unbanked and the masses through mobile phone technology.

“This is why we invested in a dynamic and secured USSD Gateway for financial services to which mCash is connected. Glo subscribers are therefore assured of a very efficient and robust system on the network.”

Diei further added the mCash initiative would make payment for goods and services easier and more convenient as the company would provide the requisite assistance for the payment scheme to succeed.

On his part, Chief Executive Officer of NIBSS, Mr. Adebisi Shonubi, said the initiative was intended to extend digital payment to the large segment of the population who deal with cash on a daily basis.

He said the initiative was the most convenient and cost-effective solution to address low value payment nationwide because it takes advantage of the networks of telecom operators which already have nationwide coverage.

Unlike the current payment system where settlement takes place 24 hours later, mCash gives instant credit to sellers/merchants. The solution is accessible via a Unified USSD Short Code,” he explained.

Source: This Day Live