Service charge

Nigeria cuts eNaira merchant service fees by 50% to boost adoption

It has been almost a year since Nigeria launched eNaira, but the digital currency only recently reached $10 million in transaction value. The country’s central bank is looking to change that and drive adoption, starting with cutting merchant service fees by 50%.

Speaking at a recent event aimed at onboarding more traders, Central Bank of Nigeria Deputy Governor Kingsley Obiora revealed the new moves to onboard more users to the eNaira wallet. The wallet has only been downloaded 840,000 times (only a quarter of them are active) since its launch, and that’s not enough in a country of 206 million people.

The Deputy Governor called on all merchants to take advantage of the opportunities offered by eNaira to improve their cash management and reduce their operating costs.

“Specifically, the benefits for merchants include reduced cash handling costs, elimination of failed transactions, instant settlement, increased transaction speed, improved record keeping and eliminating the challenges associated with giving change to customers, among other things,” he told attendees. .

CBN has been working to increase the opportunities that eNaira offers to its users, the official added. This includes integrating many popular payment and e-commerce platforms to give users more choice. More innovative services are in the works, with CBN currently collaborating with dozens of financial institutions and fintechs that are already leveraging eNaira technology.

“In addition, the implementation of cross-border transactions in phase 3 of the eNaira project is expected to increase cross-border trade by around 30%. In addition, lower transaction costs are expected to increase usage (transaction volume and value) of eNaira and improve revenue generation by businesses,” Obiora said.

In recent months, the focus has been on expanding eNaira’s user base, including support for QR codes, near-field technology, and USSD payments. Nigerians can also use a USSD code to open a new eNaira wallet without holding a bank account.

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