Every challenge has opportunities. The pandemic has brought some opportunities. Now, most employees work remotely. They work longer hours. They are efficient. They deliver more and the employers are milking the benefits. But working remotely cannot help to build the culture in a workplace. The culture of a workplace comes when a team works together, pulls together, and plays together. Remote engagements cannot compensate for what is lost in the workplace.
The same thing goes for the way most Nigerians make payment. Before the emergence of Covid-19, many transactions were conducted physically. For instance, you have to be physically present to ensure the business goes as planned. Not anymore. You needed to visit a bank branch to process a document. Not anymore. You must appear in person to confirm a cheque. Not anymore. These “work” are now done remotely. And they are done well.
The pandemic has “opened” our eyes and we have “discovered” the touch points. Suddenly, it seems the PoS terminal is a new drug.
Because of this, during the lockdown in 2020, many Nigerians were forced to adopt new spending habits to adjust to the reality of the time. Payment methods such as tap-and-go, point of sales, online transfer and shopping online became the new normal. This habit has opened new opportunities for digital currencies and payment options. This new habit cannot be erased.
In fact, it has become as important as breathing. Like blinking, we engage some of these payment methods without thinking about the result. This is because the habit has beneficial outcomes. Let us think about it. Would you travel to a bank branch when you can conduct your banking needs on your mobile phone? Would you visit a shopping mall when you can place an order on your favourite e-commerce site and your goods would come to you as expected? Would you worry about stopping a cheque when you can do so online instantly? Would you call your account manager to request your bank statement when you can print it via the bank website?
No, you would not do so. That is because these touch points work. Glitches occur, yes. The network slows, yes. Does the system work? Yes, the system works. But, you know, these touch points are not new features. They have always been there. Under-utilised, yes. But, they have always been there. There are no pantomimes. But we have been blinded by our custom. Our custom has conditioned us to see it and touch it before we buy it.
Anyhow, the pandemic has changed all of that. The pandemic has “opened” our eyes and we have “discovered” the touch points. Suddenly, it seems the PoS terminal is a new drug. The banks have unexpectedly embraced the magic of this machine. Stop to refuel at the gas station, PoS is waiting for you. You will encounter the PoS at the shopping mall. You will meet it at the street corner. Do you need quick cash when the queue is endless at the ATM? There is a PoS kiosk staring at you across the street.
Travel to the remotest part of the country, you will be shocked at the place you would meet the PoS. The street hawker now has the machine in her kitty. It is part of her marketing strategy. I encountered a set of pantomime parties recently. One of the “boys” had a PoS machine. He visibly displayed the machine so that the “street” would know they are in serious business! That is one of the habits the pandemic has helped to shore up.
But aside from the pantomime, a new Mastercard payments index has also shown that 96 per cent of Nigerian consumers are open to emerging payment methods. One of these is cryptocurrencies. In a research carried out on Nigerian consumers, Mastercard found that an increasing number of consumers in Nigeria are considering emerging payment methods such as wearables, biometrics, digital wallets and currencies and QR code.
The chief product officer at Mastercard, Craig Vosburg said the pandemic has made the company to think differently, partly out of necessity. Now, the company delivers the choice and flexibility that consumers need. Vosburg believes retailers worldwide need a range of payment solutions that are easy to access and always on.
In a research carried out on Nigerian consumers, Mastercard found that an increasing number of consumers in Nigeria are considering emerging payment methods such as wearables, biometrics, digital wallets and currencies and QR code.
The Mastercard New Payments Index says 86 per cent of Nigerian consumers have access to more ways to pay compared to this time in 2020; 78 per cent of consumers in Nigeria say digital payments methods help them to save money; 81 per cent say they are more loyal to retailers who offer multiple payment options and would shop at small businesses if offered more diverse ways to pay.
Raghav Prasad, division president, Mastercard, Sub-Saharan Africa, said the world as we now know it has changed “dramatically” since the outbreak of the pandemic. The pandemic has accelerated long-term shifts in consumers’ transaction and payment methods. The company said it would continue to work with merchants, fintechs, and banking partners to rapidly innovate payment options that “meet consumer needs” and to ensure it drives financial and digital inclusion.
I would not know if Mastercard captured the pantomime party in the new payments index research, but it is obvious that more Nigerians have embraced new payment methods. One of those who have found opportunity in the pandemic challenge is the pantomime group. How about you?
*Olaegbe ([email protected])
