Banks’ Instant Pay Transactions Hit 2.5 Million On Val’s Day

Bank customers carried out about 2.5 million transactions on Nigeria Interbank Settlement System Instant Pay platform recorded on Valentine’s Day, live updates provided by the NIBSS have shown.

As shopping for gift items and visit to entertainment spots in the country to celebrate the day increased, online payment of bills via NIP hit exactly 2,500,177 transactions as of 7.20pm on Thursday.

Analyses of the live electronic payment data indicated that a low failure rate of 0.62 per cent was recorded on the platform, with customers experiencing a total of 15,588 failed transactions.

The data showed that funds transfer formed the bulk of the volume of the NIP transactions.

NIP has been adjudged the most preferred platform for electronic payment having grossed more transactions in monetary terms than PoS and e-Bills Payment over the years.

The statistics also showed that Point of Sale transactions carried out by merchants and retailers in the country were 878,336 as of 7.20 pm on the same day.

The data indicated that transactions on PoS had a high failure rate of 13.85 per cent as the volume of failed transactions on the terminals stood at 121,635 at the same time.

NIP recorded the highest volume of transactions – 38,211 – at 4.30pm, while electronic payment on PoS peaked also at 4.30pm, recording a volume of 16,715.

Data on the e-payment platform efficiency showed the destination bank for electronic payment contributed the most to failed NIP transactions between January 18 to February 8, 2019.

Within the 21 days under review, the data indicated that the NIBSS platform had not in any way contributed to the failed NIP transactions while the contribution of the customer to failed transactions was minimal.

Stakeholders in the industry have attributed the high rate of failed transactions on PoS to poor network and payment systems that use multiple SIM cards, WiFi, or Local Area Network have been developed to address this.

The Central Bank of Nigerian recently imposed a fine of N10,000 on any failed Nigerian Instant Payment transaction not reversed into the customer’s account within 24 hours, based on the complaint of the sender and/or beneficiary.

The apex bank also stated that the delayed application of inward NIP into beneficiaries’ accounts beyond four minutes would attract a penalty fee of N10, 000 per item.

The CBN stated, “The sanctions above and any other prescribed in the Nigeria Bankers’ Clearing System rules or any amendment thereto, shall apply.”