By RARZACK OLAEBGE
The new currency of funds transfer is speed.
Speed matters for car race drivers, for sprinters, for aeroplane pilots and for millions of people at the bottom of the pyramid. The artisans, hawkers, market men, and women – speed is the new currency. These people are at home with the cashless economy. The speed of funds transfer has aided this transition. Getting the payments for goods and services in their accounts instantly is akin to putting the cash in their hands. They like the feeling. They like the assurance. The assurance was deepened recently with the introduction of the millisecond funds transfer. Have you experienced it yet?
On the one hand
The other fintech firms, Opay, Palmpay, and Moniepoint, have raised the stakes in the industry by making instant funds transfer possible in seconds. Unless there is a network glitch or a delay from the processing bank, the platforms deliver funds transfer at the speed of thought. This experience excited the market. It has shored up the volume and value of transactions.
On the other hand
We thought we had seen it all. When bank transfers failed back then and the fintech trio delivered instant funds transfer, we were like Alice in Wonderland. We were excited. What the banks could not make possible, the fintech trio made the impossible possible. The market responded in a positive way. Many bank customers moved to the fintech platforms. The experience led to the proliferation of PoS devices across the country.
In the long term
We thought we had seen the best. Then on June 17, 2025, the Nigeria Inter Bank Settlement System [NIBSS] introduced into the market the national payment stack. A next-generation payment infrastructure. The platform aims to transform our instant payment ecosystem. Redefine the future of digital transactions. Enhance value. Offer a superior customer experience. On November 7, NIBSS initiated a transaction between Palmpay and Wema Bank. The transaction happened in milliseconds with instant settlement.
This milestone demonstrated the scalability and transformative power of a national infrastructure from a government-owned establishment. NIBSS said in a statement that the next-generation payment infrastructure represents its commitment to speed. Innovation. Interoperability. Security. These ingredients would boost the market confidence and increase the volume and value of transactions on the electronic payment machines. For instance, in 2024, the value was N1 quadrillion. In the first quarter it was of 2025, it was N284 trillion. With the new Ferrari gateway, we should expect N1 quintillion in transaction value.
The landmark aligned with the directive of the Central Bank of Nigeria [CBN] ISO 20022 adoption of all electronic financial transactions. What does this mean? This breakthrough has laid the foundation for the development of Nigeria’s digital public infrastructure. Now that speed is the new currency, banks, fintech firms, and payment service providers have their job descriptions written on the wall.
In the short term
Now, the colour of funds transfer is speed. If your transfer takes more than a millisecond, it is archaic.
*Olaegbe ([email protected])
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