Category: Payments

Adedeji Olowe’s take about everything payments. You could read about technologies, business models, direct debit, transfers, virtual accounts and other industry stakeholders for payments.

Crashing the Cost of Banking: The Bitter Sweet Experience

The Central Bank (of Nigeria, if you really want to know) has been at the fore-front of financial inclusion, and oh, at the forefront of cashless economy.

Obviously they decided to mash the two together.

Kudos can be given to CBN for forcefully yanking our sorry backside from comfortable banking to make things really cashless. Considering that government and regulators are not known for speed or innovation, this is extremely commendable.

So, the CBN started the cashless thingy, did a million road shows and I guess the people we hardly see, the real banking customers, complained about the cost of everything. CBN came back and said, “From December 17, 2012, thou shalt not demand for N100 when your customers use other banks ATMs again!”

What?

You see, the N100 from ATM is almost synonymous with N20 collected by Askaris. You can’t dodge it. But then it cost money, I mean real money – mostly in Benjamins, to make the ATMs and other e-things work. Nothing goes for nothing.

The NCC came around and said, “From February 2013, thou shalt not collect more than N4 from SMS sent within Nigeria.” That is going to hit the pretty backside of SMS alerts. That itself is a story for another day.

Well, the CBN is not done yet – there wouldn’t be any minimum balance any minimum balance anymore. By this time, bankers are looking around bewildered.

Ok, so where do this all lead to? Simple English: Financial Inclusion.
The reality is, the cost of banking could be a barrier to quite a number of customers. Better put, most customers. Take the annoyances – COT, minimum opening balance, minimum balance, ATM fees, transfer fees, bla bla. Customers simply run for the gates. By crashing the fees, CBN is making sure no one has a real excuse for not having an account.

I can see this game evolving over time – I expect that CBN might banish some other fees, put a max on interest that can be charged on loans, a minimum percentage that must be lent to SME (wait, what happened to that 10% of PBT to be invested in SMEs?). Some even think the days of COT are numbered.

The take from everyone is this – in the short term, there would be a dip in revenue but with rapidly growing number of customers flocking to the banks and e-channels, the revenue and potentials will pick-up. This happened in telecoms, I hope and sincerely pray it happens in banking.

Poor Support and Initiatives from Payment Gateway Providers Kills ECommerce in Nigeria

My experiments with Magento and OpenCart revealed a lack of modules for Nigerian payment gateways, hindering e-commerce growth. Providers should offer plugins for popular platforms and improve support to boost online shopping.

In my recent online payment experiments, I worked with both Magento and OpenCart. While Magento is complex enough to make even a bishop go raving mad, it still came with some payment modules/plugins out of the box. Same for OpenCart. Conspicuously missing are the modules from top payment gateways in Nigeria.

From my own firsthand experience, handcrafting APIs for payment is a bore. It has significantly retarded the growth of ecommerce in Nigeria more than anything else.

If you want to accept payment online in Nigeria today, you are limited to payment gateways from:

  • InterSwitch and/or UPSL (ValuCard)
  • Banks and their proprietary systems
  • Other independent providers such as Pay4Me, etc.

Thereafter you are on your own. One, you don’t have any pre-cooked modules or plugins you can easily install on the most common payment applications such as OpenCart, Magento, PrestaShop, ZenCart, etc. and also their integration documentations are lame, non-existent or sometimes downright incorrect. Support is patchy and poor, and they want to charge you for every time you take a breath.

So how can life be easier? Payment gateway providers should make available modules or plugins that can be used for probably the 10 commonest online engines, including the venerable old WordPress and Joomla (yes, some people do use such). Also, they should have a vibrant support system such as an online forum – with sample codes, reviews, user interactions, blah blah blah.
This should create a network effect; as more shops go online, much more will like to go online. Ultimately anyone with a card will always have something to buy online.

Online Payment Sucks

Despite the government’s push for a cashless society, major retailers like DSTV and telcos lack integrated payment options. Swift Wireless excels, showing the need for smarter solutions from industry leaders.

Why isn’t the cashlite breeze blowing over to some of the major retail forces in the industry? I mean the government has stoked the cashless fire but I don’t know if guys over at DSTV are wearing fire-retardant pants or what not.

Ok. This is a gripe but then someone’s got to listen to me.
The other day I wanted to pay for my cable TV and still had to do it over QuickTeller. Given, those dudes have done some job, though it feels pre-historic at times but the gripe is why I have to go over to QuickTeller when I should be able to pay for this right inside my DSTV account? Why hasn’t DSTV integrated payment into their own website and make the customer experience sticky? Maybe this is a jamb question, which I would never know. Last I checked, I did mine eons ago.

Same for MTN and the other clueless telcos, you can’t buy airtime on their websites. They don’t have any mobile app. You can’t type in your card number and get some chatty airtime added as extra-life to your phone to harass some poor souls at the other end of the virtual wire.

Reality is sometimes big society change will only happen when some prime movers get moving. Time CBN and the big ole’ banks work on initiatives that can make impact on the market.

Sorry I forgot, someone got it right. Swift Wireless. Even when your internet subscription is up in flames and you can’t see any cat videos or lulz on the web, the payment gateways still work. Someone apparently thinks in that place but it seems they patented intelligence and MTN and folks wouldn’t pay licensing fee.

How Do I Accept Payments on my Website? Part 5

The adventure with Magento for web payment came to a crashing end faster than I thought. Like my previous post explained, Magento is extremely powerful and highly configurable. However, it doesn’t lend itself to ease of deployment or management.

It has just way too many settings and configurations that could drive even a mad man insane. For the middling developers, the structure is bloated and cumbersome with thousands of files and annoying folder structure.

So I’m giving up on it for a while to try another approach. Maybe it would be osCommerce, OpenCart, etc. my research should tell me. But whether I like it or not, we have to crack this online payment experiment.

In the midst of my frustration, I have left my friend, fellow executive guinea-pig extremely angry and taciturn.

But it seems I’m not alone. As far back as 2009, Magento has been driving people nuts.

How do I Accept Payments on my Website? Part 4

The adventure to put up an ecommerce website has been a very exciting one. Or maybe that’s what I wished for.

I got the website up and running with great support from siteground.com; slapped on an SSL; got a merchant account from the bank and also the integration document.

Then it stopped looking like an adventure.

Magento is powerful, indeed powerful enough to run some of the most complex shopping websites out there. In fact, I have a friend who’s contracted some dudes in India to help him use Magento for an online shopping mall.

Magento has settings for apparently everything under the sun. Getting the basic shop online has been one hell of a job that I’m still grappling with. There are gazillion settings and codes and parameters and yada yada to check and configure.

Or maybe I’m getting old and em, em, gray and this is for script kiddies. Or maybe not.

The good news is I should get this fixed before the end of the week and then we can put a pretty makeup of a nice theme on it.

Until then I need more than 5 truckloads of luck.