2024 has presented an inflection point for digital payments. Processors have been made to understand that merely delivering traditional payments will not be sufficient anymore. Fortunately, companies have an opportunity to evolve in line with customer preferences.
Recently, Zone – a regulated payment infrastructure company – shared its Nigeria Payments Report, which offered a few critical insights on consumer preferences concerning payments. And for companies looking to thrive, this report is undeniably a must-read.
Convenience and Speed:
Today’s digital environment is heavily reliant on speed and convenience. Customer needs have evolved significantly, but nothing beats speed from the customers’ perspective.
The focus on speed is primarily what drives the rise in point of sale (PoS) transactions across Nigeria. As Zone’s Nigeria Payments Report shows, PoS transfers in Nigeria saw a 17% uptick from 2021 to 2022, rising from 982.83 million to 1.14 billion. At the same time, total transaction volumes surged from ₦6.43 trillion to ₦8.39 trillion within the same period.
The reason is simple – PoS transactions offer optimal convenience and speed, combining these benefits with top-notch security. As Nigerians move more towards cashless transactions, PoS transfers – as well as innovations such as digital wallets and contactless payments – are expected to take centre stage.
Security and Trust:
Another major consumer preference comes in the form of trust and security. And, in many ways, this requirement can be seen as the most critical.
Between 2022 and 2023, almost 11,000 fraud cases – totalling almost ₦1.6 billion – were reported on PoS channels alone. When accounting for other payment channels, this figure comes in even higher.
The need for security is one that payment services and processors just can’t ignore anymore. And no matter how revolutionary a payment solution is, adoption will continue to lag if customers can’t trust that its infrastructure is safe and reliable enough to protect their funds.
To improve this, payment services have had to diversify and implement the right underlying technologies that can optimize security. And this is one area where blockchain excels. By providing a decentralized network, blockchain technology ensures that there is no single point of vulnerability across the payment channel. As a result, payments become more secure, and customers can trust that issues such as fraud and security breaches can be avoided.
Zone is looking to lead the forefront of this charge. The company has built Africa’s first regulated blockchain-based payment infrastructure, serving banks, fintechs, and other financial institutions and pushing Africa’s payments landscape into a decentralized setting. With Zone’s blockchain payment network, institutions can provide reliable, safe, and secure payments without sacrificing speed and cost-efficiency. This means that payments can be more reliable, while also being particularly fast.
Personalization and Loyalty:
Finally, there’s the personalization requirement that most customers have today. The infusion of digital payments into processes such as e-commerce and online shopping has made it necessary for payment services to provide a certain level of personalization to customers.
Personalization in payments goes beyond just the one-size-fits-all approach, allowing payment services to cater to customers’ individual preferences and provide a more seamless experience.
From choosing customers’ preferred payment methods to setting up recurring payments and discounts for loyalty, personalized payments allow customers to pay as they want to. And for businesses, personalization optimizes customer satisfaction rates and improves overall brand loyalty.
Conclusion:
Yet again, customer expectations and requirements concerning digital payments have switched. And as the Zone Nigeria Payments Report has shown, companies that can adopt next-generation strategies and technologies will be able to accommodate these changes.
Additional insights on switching strategies can be found in the full report, which is accessible here.
