Onyeagwu instructs online bank to adopt QR payment

NNN: Zenith Bank Plc Managing Director Mr. Ebenezer Onyeagwu has urged e-banking industry officials to educate customers and merchants on the importance of adopting the contactless payment system.

Onyeagwu made the remark during a webinar hosted by the Committee of Heads of Online Banking Industry (CEBIH) on Thursday.

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The theme of the event was “Transforming the customer experience with innovative contactless and fast-response payment”.

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He said adoption of contactless payment was very low in Nigeria as stakeholders had not raised enough awareness.

The managing director said they could educate customers and merchants through traditional and new media channels on how the payment system works.

He said it was imperative to bring contactless payment to the last mile in terms of the financial intermediation process.

“We need to drive and raise awareness to the point where the man selling roast plantain on the street will say no to cash and ask for contactless payment preference.

“Contactless payment is a method where payment is made by scanning a quick response (QR) code from a mobile app.

“In terms of adoption, China, Japan, the UK, Australia, Germany, the US, France and Canada, among others, are leaders,” Onyeagwu said.

He said that in the Nigerian market, the contactless mode of payment has yet to gain traction.

The Zenith boss said that in more developed economies, contactless payment has transformed the shopping experience for customers through improved speed and enhanced security.

He said if Nigerians fully embrace the QR payment system, merchants would get access to daily transaction report, enhanced checkout experience and also leverage data-driven insights for targeted marketing.

Onyeagwu said banks would benefit from account opening opportunities and share the commission on payment.

The boss of Zenith, however, said that to increase the adoption of contactless payment, the country would have to face the problem of poor digital infrastructure.

“It’s good for us to embrace digital technologies, but there’s a huge infrastructure gap.

“We load many applications on an outdated infrastructure. Most of the ones we have aren’t designed to work with the new apps that are coming now.

“We need to transform our architecture to be able to meet our needs; without it we cannot progress,” he said.

Furthermore, the Director of Payments System Management at the Central Bank of Nigeria, Mr. Musa Jimoh, said that banks and fintechs should work according to the needs of their customers.

He said it was imperative to consider customers when introducing new products and services, ensuring they did not come at a high cost.

Jimoh said it was necessary for banks to refresh their infrastructure before adding new products.

NewsSourceCredit: NAN

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