Panic as banks record 184,100 failed instant e-payments on Friday

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Bank customers experienced 184,100 failed electronic payment transactions on the Nigeria Interbank Settlement System Instant Payment platform on Friday.

NIP, an online real-time product that facilitates instant payment of bills on a bank account, as of 5.20pm on Friday recorded a total volume of 4.32 million transactions, live updates provided by the NIBSS showed.

An analysis of the electronic payment data indicated that a failure rate of 4.26 per cent was recorded on the platform.

NIP has been adjudged the most preferred platform for electronic payment, having grossed more transactions in monetary terms than NEFT and e-bills payment over the years.

The statistics also showed that Point of Sale transactions carried out by retailers in the country had a high failure rate of 15.26 per cent as of 5.20 pm on the same day, out of a total transaction volume of 86,681.

Stakeholders in the industry have attributed the high rate of failed transactions on the PoS to poor network, and the payment systems using multiple SIM cards, WiFi or local area network have been developed to address this problem.

Data on the e-payment platform efficiency showed improved contribution to the efficiency of NIP transactions by destination and originating banks between March 2 and March 23, 2018.

Within the 21 days under review, the data indicated that the NIBSS platform had not in any way contributed to the failed NIP transactions while contribution of the customers to the failure rate had remained stable at 0.11 per cent.

Commenting on the factors responsible for the failed transactions recently, the Head, Corporate Communications, NIBSS, Lilian Phido, said that it could be traced to network issues in the banks, insufficient funds in the customers’ accounts, and problems on the NIBSS platform.

She said, “There are many parties associated with a typical transaction. The bank, customers and NIBSS are involved. If the customer doesn’t have money in the account or the account is lean, the transaction will fail. If the bank has network issues, the transaction will fail at that moment. If the NIBSS platform is down, then the platform will not work in all the banks, not just one bank. This is very rare because it means the platform will not work in any of the banks.”

Despite the preference of Nigerians for electronic payment over over-the-counter transactions, industry report showed that fraudsters had stolen about N237bn since 2007 from Nigerian banks through the various electronic payment systems.

The Chairman, Committee of E-Banking Industry Heads, Mr. Dele Adeyinka, recently said that the rising volume of transactions across different payment channels meant stakeholders would need to constantly look for ways to ensure the e-channels were more secure for people to transact without fear of losing their money.

According to the Head, Industry Security Services, NIBSS, Mr. Olufemi Fadairo, of all the e-payment channels available in the country, the ATM, web and mobile account for 77 per cent of fraud cases.

Fadairo tasked stakeholders on the need to consolidate data in the industry towards mitigating fraud.Punch

 

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