The total volume of electronic transactions classified as direct debits increased to 849 million in the third quarter of 2020, an increase of 54% compared to the second quarter.
This is contained in the latest Banking Sector Report from the National Bureau of Statistics.
Direct debits involve standing instructions between a bank and customers approving money transfers to third parties on a scheduled date over the money. Direct debits are a feature of most developed economies and are used to pay utility bills and other forms of third party credit commitments.
Besides the total transaction volume, the value of direct debit transfers was 633.5 billion naira, up from 792.7 billion naira in the second quarter of the year, when most Nigerians were still stranded. According to the NIBSS, around 320.9 billion naira of direct debit transactions took place in 2017
The increase in the volume of transactions for direct debit suggests that more and more Nigerians are adopting direct debit as a method of payment. For example, most microfinance banks use it for the payment of unsecured loan transactions and could be the main factor in increasing the adoption rate in Nigeria.
Other banking sector data
Meanwhile, the total value of electronic payment channel transactions in the country rose to 319.9 trillion naira in the third quarter of 2020. The total transaction volume for the same period was 2,781,526,188 transactions.
- Mobile money operators also recorded an astonishing 5.4 trillion naira in the third quarter of 2020, as Nigerians quickly adapt to the rise of mobile money.
- POS – The value of point-of-sale (POS) channel transactions in Nigeria increased from N994.91 billion in the second quarter of 2020 to N.1200 billion in the third quarter of 2020, indicating an increase of 21 , 42% quarter to quarter.
- Check usage increased significantly as transactions through this channel grew to 3.833 billion naira in the third quarter of 2020, compared to 2.5 trillion naira in the previous quarter, indicating a 51.17% increase in quarter.
- On the other hand, ATM transactions recorded an increase, with transactions rising from 3,741 trillion naira to 5.05 trillion naira during the period under review, indicating a gain of 35.09%. QoQ. The highest value of ATM transactions was in March (1.75 billion naira), while the lowest was in April at 991.97 billion naira.