Palmpay, Opay, Others Process N97.7 Trillion as E-Payment Transactions Hit 59 Per Cent
- Electronic payment transactions increased in value yearly in 2024, hitting N284.4 trillion from N178.5 trillion
- The figure represents a 59% increase in e-payment transactions in the review period, dominated by NIP transactions
- Mobile money transactions also rose to N79.7 trillion during the period from N46.77 trillion in 2023
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Electronic payment transactions rose in value by 59.3% per year to N284.4 trillion in 2024, up from N178.5 trillion in 2023.
A breakdown from the Nigeria Interbank Settlement System (NIBSS) showed that NIBSS Instant Payment (NIP) recorded the highest volume at N10.47 billion and N105 trillion of e-payment transactions under the review period.
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Opay, Palmpay and others rival traditional banks
Mobile money transactions followed with N79.7 trillion in value and a volume of 3.92 billion transactions.
A further breakdown showed that the NIP volume transaction rose yearly by 92% to N10.47 billion in 2024 from N8.49 billion in 2023, while the value dropped by 8.69% to N105 trillion in 2024 from N115 trillion in 2023.
Also, the volume of transactions by mobile money operators (MMOs) rose 28.9% per year to 3.92 billion in 2024 from 3.04 billion in 2023, while the value rose by 70% to N79.7 trillion in 2024 from N46.77 trillion in 2023.
Rise and fall of fraud incidents
NIBSS disclosed that the amount of fraud counts dropped to 95,620 in 2023 from 101.669 in 2022.
The Nigerian central switch system said that mobile money payment saw a five per cent increase relative to 2022, becoming the most selected fraud during the review period.
The development comes as Nigerian banks have reported a whopping N42.33 billion in fraud losses in the first six months of 2024, with increases recorded in multiple channels.
Data from the Financial Institutions Training Centre disclosed in its first and second quarter reports on fraud and forgeries that the losses revealed an alarming trend.
Fraud cases in bank branches spike
Most importantly, fraud in bank branches spiked 31%, hitting N42.2 billion in the second quarter of this year, relative to N133.9 million recorded in the previous quarter.
Also, computer/web fraud increased by 1,560.3% from N24 million in the first quarter to N400.8 million the following quarter.
Mobile fraud declined by 59% from N216.4 million in the first quarter to N88.7 million in the second quarter.
There were no ATM-related fraud cases for the review period.
Other fraud channels
The figures for the first and second quarters also showed a shift in fraud activities involving some financial instruments.
Card fraud declined by 47.66% from 21,469 cases in Q1 to 11,231 in the second quarter of the year, while cheque-related fraud rose 36.67% from 30 cases in the first quarter to 41 cases in Q2.
Cash fraud cases increased 9.09% from 209 in the first quarter to 228 in the second quarter of this year.
Fraud cases across other payment channels showed a decline relative to the previous quarter.
3 Nigerian banks report 26,877 fraud cases
Legit.ng earlier reported that According to financial reports, Access Bank, GTB and Fidelity Bank registered about 26,877 fraud cases in the first half of 2022.
The report shows a 56.45 per cent decline from 61,715 fraud cases recorded by the banks between June and December last year.
The Punch report said that Guaranty Trust Holding Company and its subsidiary firms reported 15,004 fraud cases in the period under review.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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