Real-Time Technology To Unlock $6bn In Nigeria By 2026
Real-time transactions in Nigeria are forecast to rise from 3.7 billion real-time transactions in 2021 to 8.8 billion annually by 2026.
This is a 5-year Compound Annual Growth Rate (CAGR) of 18.6 per cent that would help unlock $6 billion of additional Gross Domestic Product (GDP).
According to a report by ACI Worldwide in partnership with GlobalData, a data and analytics company, and the Centre for Economics and Business Research (Cebr), this would make Nigeria rank 4th among the world’s economies that are realising the maximum economic benefits of real-time payments.
The report – tracking real-time payment volumes and growth across 53 countries – includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time for consumers, businesses, and the broader economy across 30 countries.
Also, it revealed Nigeria as Africa’s undisputed real-time and digital payments leader, having recorded 3.7 billion real-time transactions in 2021, ranking sixth among the world’s most developed real-time payments markets behind India, China, Thailand, Brazil and South Korea.
The widespread uptake of new digital and real-time payment services helped Nigeria unlock $3.2 billion of additional economic output in 2021, representing 0.67 per cent of the country’s GDP.
The Head of Middle East, Africa, and South Asia, ACI Worldwide, Santhosh Rao noted: “Nigeria is fast becoming a posterchild across Africa for the successful digital transformation of the country’s economy.
Accelerated by the COVID-19 pandemic, Nigerians increasingly expect higher speeds, greater simplicity, and modern thinking from financial service providers. While cash is still being used widely, the shift towards digital and real-time payment services is ta testament to the success of government regulators in fostering rapid growth in digital openness, particularly pin payments.
“Our research shows that governments that advance the real-time modernization of their national payments infrastructure create a win-win situation for all stakeholders in the payments ecosystem. Consumers and businesses benefit from fast, frictionless and hyper-connected payments services, financial institutions future-proof their business in a highly competitive environment by speeding up cloud-first and data-centric modernization, and national governments boost economic growth, reduce the size of their shadow economy and create a fairer financial system for all.”
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