System Infrastructure Outside-in vision from SIBS Lagos, 21 st - - PowerPoint PPT Presentation
Transforming the Nigerian Payment System Infrastructure Outside-in vision from SIBS Lagos, 21 st November 2014 Agenda 1. A COUNTRYWIDE PAYMENT SYSTEM TRANSFORMATION THROUGH SHARED INFRASTRUCTURE PLATFORMS 2. U NLOCKING THE POTENTIALS OF THE N
Outside-in vision from SIBS
Lagos, 21st November 2014
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Agenda
SHARED INFRASTRUCTURE PLATFORMS
PAYMENTS INFRASTRUCTURE PLATFORMS
Independent view of the Portuguese Payment System
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“The cash machine (…) provides the local community with a lot more than easy access to their euro. It is a multi-function kiosk where they can book train and cinema tickets, make social security and tax contributions (…) That is because the ATM in question is part of SIBS ATM network, (…) that offers more than 60 services.”
In Financial Times.
The Portuguese Payment System is internationally recognized as a case of success and innovation.
“SIBS’ ATMs are among the most high functional
facilities are also available (…). ATMs are also advanced in terms of hardware features.”
In Retail Banking Research Bulletin.
“... the example of the Portuguese system, SIBS, suggests that greater innovation may arise out
number of payment methods is carried out centrally.”
OFT.
“A survey conducted for this report looked at the availability and use of a non-cash functions at cash machines in other countries. Of the survey respondents, the Portuguese were the leaders in the cash machine functionality.”
In APACS’ Report UK Cash & Cask Machines.
Benchmark of European Card Market European terminals and electronic transactions benchmark (2011)
Source: SIBS statistics and BCE (Blue Book - Payments and Securities Settlement Systems in the European Union - October 2012).
France
(~65 millions inhabitants)
UK
(~63 millions inhabitants)
Portugal
(~10 million inhabitants)
EU
(~503 million inhabitants)
Card transactions per inhabitant 74 158 121 183
+114% +148% +64%
ATM per million inhabitants 1.624 892 870 1.026
+18% +87% +3%
POS terminals per 1.000 inhabitants 26 22 18 22
+23% +46% +26%
SIBS is one of the leaders in the European Electronic Payments arena.
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ATM Network
More than 6 Billion transactions in 2013
POS Network Road toll contactless payments Mobile phone top-up MB PHONE Public phones’ payments RTGS SET Protocol (e-commerce) Bill payment at ATM Cheques’ Clearing Draft’s Clearing Road Toll payments Direct Credits Tax Payments Source: SIBS statistics - 2013
SIBS’ position results from high investment and innovation during the last 30 years that have sustained the constant activity growth.
First network in the world to
Mobile Phone Top-Up.
5 Car Park contactless payments MB NET Law Payments e-authentication PE-ACH interface (for credit transfers) Direct Debits Gas stations contactless payments Welfare Payments SWIFT interface SEPA CT Contactless Payments (card) MB SPOT TARGET 2 MB DOX Managed Cards (thousands)
1985
551
1994
5.291
1997
8.132
2003
14.688
2006
17.642 3.184
1991 2013
19.540
1988
1.240
2000
11.756
2009
19.628
Unlocking the potential of the Portuguese electronic payments Portuguese Transformation Roadmap
Nº transactions (in thousand)
n.a. x10 x2 x2
Transaction volume growth
POS ATM Other channels
x2 x2 1985 1986 1987 1988 1991 1990 x4 1989
5,525 11,861 114 11,975 20,278 920 71 6 21,914 2,950 278,910 49,336 7,349 118,351 188,288 87,699 71,546 175,036 19,074 543 51,593 33,156
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Unlocking the potential of the Portuguese electronic payments How SIBS started its transformation journey
SIBS plays a central and transversal role in the payment system, presenting a wide range
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POS Internet ATM Mobile Others Contactless road toll payment
Channels Issuers Acquirers SWIFT TARGET 2 EBA Clearing IPS
Others:
Issuer processor Issuer
Unlocking the potential of the Portuguese electronic payments SIBS presently offers a one-stop-shop portfolio of services
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Source: SIBS statistics - 2013 .
SIBS success is generated by the investment in innovation and convenience provided to the customers.
Millions of operations per year
2013
Cash dispensing transactions Cashless transactions
The SIBS ATM network is being increasingly used to perform non-cash dispensing operations (with more than 100 different functions and 52% of total transactions in 2013).
200 300 400 500 100 700 600 800 900 1985 1993 2001 2005 1989 1997
ATM Network Mobile phone top-up Bill Payments Road Toll payments Tax Payments Judicial Payments Social Security Train Ticket Sales Transfer to Account Event Ticket Sales Cheques Issuing Fishing and hunting licences purchase Travel Pass Reload
2009
Unlocking the potential of the Portugal electronic payments From cash to cashless
SIBS scale and scope leverages a competitive price offering efficiency to the financial community
SIBS has a proven track record on transferring scale gains to its costumers, through a sustainable price reduction path.
Source: SIBS' fee structure, SIBS’ Statistics 2013.
Evolution indexes for SIBS’ average fee
(all services combined)
Evolution indexes (1999=100) 1999 2001 2003 2005 2007 2009 2011 50 150 200 250 350
Average fees (left scale) Transactions (right scale)
20 40 60 80 120 100 100 2013
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Agenda
SHARED INFRASTRUCTURE PLATFORMS
PAYMENTS INFRASTRUCTURE PLATFORMS
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Unlocking the potentials of the Nigerian electronic payments POS terminals activity growth
Source: NIBSS.
The cashless initiative has placed Nigeria growing fast.
transactions
transactions active POS terminals
~5,000
active POS terminals
~40,000 October 2014 December 2011
12 Source: NIBSS, EMIS, CIA.
Monthly POS trx
(October 2014 - values in millions)
x2
GDP
(2013 - values in billions USD)
÷4
Population
(2014 - Values in millions)
÷9
Unlocking the potentials of the Nigerian electronic payments International benchmark - Angola and Nigeria
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Unused POS
Registered Deployed/Connected Active
172 (100%)
October 2014
134 (78%) 40 (23%) ~132 thousand POS unused, that represents ~24,000,000€ (~5.1 billion N)
Source: NIBSS.
Unlocking the potentials of the Nigerian electronic payments Unused POS
In spite of the effort made in coverage, there is still a huge number of unused terminals.
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“...only 15% of transactions are perceived by the merchants as successfully performed.” Technical malfunctions and network connectivity are among the reasons for still not having a POS. Terminals without connectivity are the major cause for discouragement for consumers’ POS usage.
Source: NIBSS.
Unlocking the potentials of the Nigerian electronic payments Main findings of market research for POS
Unlocking the potentials of the Nigerian electronic payments Reliable power and communication infra-structure
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MPOS
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Connectivity Application Reader and Pinpad
E-POS
Unlocking the potentials of the Nigerian electronic payments New POS terminals technologies – e.g. MPOS and E-POS
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certification, homologation, centralized monitoring)
increasing competition in the ATM maintenance market
(systemic) innovation
by making available central shared platforms
Unlocking the potentials of the Nigerian electronic payments ATM network - improve network management
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POS ATM Global Terminal Management System (GTMS)
efficiency
compliance
improve customer satisfaction
(and renovate)
making (more adequately informed)
Unlocking the potentials of the Nigerian electronic payments Shared Global Terminal Management System (GTMS)
Mobile
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Illustrative picture
Looking forward to the constant improvement of service quality and resilience, there is the need to enhance technology infrastructure to support industry growth.
Unlocking the potentials of the Nigerian electronic payments Assure basic infrastructure quality (e.g. Datacentres)
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Unlocking the potentials of the Nigerian electronic payments Improve quality and security
Illustrative pictures
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Assure basic infrastructure - e.g. improve connectivity, data centers, power, quality certifications - through an industry program office and specific initiatives Focus on Cashless Nigeria progression, i.e., electronic payments adoption - e.g. promotion, prioritize areas/clusters and merchants, etc. Make use of the shared resources - GTMS, technical monitoring, business activity monitoring, etc.
Unlocking the potentials of the Nigerian electronic payments Nigerian Payments Market immediate priorities
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