Source: Enterprise IT News
Wall Street, New York. Oct 20, 2014 - Nigeria has seen tremendous increase in the adoption of alternate payment channels (APC) since the implementation of its Cashless Policy in January 2012 – an initiative to encourage the use of electronic payment transactions, and to reduce the circulation of cash in the economy.
Channels like Point-of-Sale (POS) terminals, Credit card payments, Internet and Mobile banking, and the use of self-service ATM technologies have experienced widespread growth in just 2 years.
With this implementation, the Central Bank of Nigeria (CBN) wants to achieve economic growth and modernization by realizing the Payment System Vision 20: 2020. It hopes to eliminate high occurrences of money laundering and crime rates caused by a cash-based economy.
CBN also hopes to help banks reduce the cost of cash, so that savings can be re-purposed to provide banking customers with better payment options and greater banking reach.
A customer satisfaction survey conducted in April 2013 by Nigeria Banking Industry has shown that ATMs remain to be banking customers’ most used and preferred channel. London-based research firm RBR also reported that Nigeria will continue to experience one of the fastest ATM market growths globally until 2018.
Rototype International recently teamed up with Orange Apple Technologies Limited (OAT) of Nigeria to introduce the Rototype Cashless ATM – a self-service machine designed to maintain the familiar experience of a cash dispensing ATM which can be shared amongst multiple merchants.
Based on extensive market studies conducted at grassroots level,OAT CEO Osato Izegbuwa strongly believes that this machine will command a large part of the e-payments market because of its shared ATM model.
Other APC models such as the POS not only require merchants to invest in a physical terminal, commit to a monthly subscription fee and levy their customers with a service charge – there is a settlement cycle of up to T+3 days. Hence, such models may prove unattractive amongst tier-3 and tier-4(long-tail) merchants.
The Rototype Cashless ATM is purposefully built based on a shared ATM concept whereby shoppers will be able to pay for purchases using their ATM card – thus eliminating cash handling between the shopper and merchant. It also enables instantaneous payment debited into the merchant’s account so that merchants will never face the risk of robberies or pilferage again.
Besides realizing substantial savings from decreased cash handling, participating banks will also benefit because new merchant customers would need to open operating accounts with the bank. A large and profitable market segment can be found by capturing enough of these long-tail merchants.
Rototype International Group CEO Harres Tan said, “Nigeria is now equipped with the right infrastructure and its people are ready to embrace technological advancements.”
“We look forward to continue expanding our presence in West Africa through forward thinking companies such as OAT.” He added.
Rototype International is a global self service banking solutions provider facilitating electronic payments via its shared Cashless ATM concept. It is the designer of the world’s only Cashier’s Check Dispensing machine.
The company also provides outsourcing services to financial institutions with schemes such as “pay-per-use” and “all-inclusive” lease/rental for its above solutions. Other services available includes check collection service, back office check processing and 24/7 online status monitoring and control of all self service machines deployed by banks.
Rototype International is dedicated to helping its bank clients stay ahead of competition through banking technological innovations that redefine user experience and transforming business models to withstand the global economic challenges.
Media contact: Ms. Vanessa Tan