MasterCard, a US-based payment solutions company, recently announced a new partnership with the Nigerian National Identity Management Commission (NIMC), an initiative of the Nigerian government to enroll all citizens and permanent residents into a national identity database, to produce 13 million “National Identity Smart Cards” that can be used as both identification cards as well as an electronic payment solution. The card will not only be able to record an individual’s demographic and biometric data – including fingerprints, facial picture and digital signature – but also can be used as a payment tool to deposit funds, receive unspecified social benefits, pay for goods and services, withdraw cash from automated teller machines (ATMs) and engage in other financial transactions. Dr Ngozi Okonjo-Iweala, Nigeria’s Minister of Finance, voiced that the program will promote collaboration “between the public and private sectors” and “bring all the citizens on a common platform for interacting with the various government agencies and for transacting electronically. [1]”
Access Bank Plc, a Nigeria-based financial services company, will act as the pilot issuer bank for the new cards, and Unified Payment Services Limited (Unified Payments), a Nigerian payment processing services company, will act as the primary payment processor. Other issuing banks will include the Nigeria-based financial service companies of United Bank for Africa, Union Bank, Zenith Bank, Skye Bank, Unity Bank and First Bank as well as the South Africa-based Stanbic Bank [1].
If the initiative is successful, the Nigerian government plans to circulate approximately 100 million more cards in the future. The program could also eventually integrate other existing identification card schemes, including voter registration, driver’s licenses, health insurance, tax payments and pensions. Aigboje Aig-Imoukhuede, CEO of Access Bank, expressed that “the new identity card will revolutionize the Nigerian economic landscape, breaking down one of the most significant barriers to financial inclusion – proof of identity, while simultaneously providing Nigerians with a world class payment solution [1].”
As of July 2013, MasterCard reports total assets of USD 12.5 billion and 1.2 billion payment cards in circulation worldwide. In the year 2012, Access Bank Plc had total assets of NGN 1.7 trillion (USD 11.0 billion), a gross loan portfolio of NGN 609 billion (USD 3.8 billion), deposits of NGN 1.3 trillion (USD 8.2 billion) and operations in approximately 310 branches across nine African countries and the United Kingdom. Information about Unified Payments’ operations is unavailable.
By Michael Averell, Research Associate
About MasterCard
MasterCard is a global payments and technology company that is headquartered in New York, USA. It connects consumers, financial institutions, merchants, governments and businesses in approximately 210 countries and territories. As of July 2013, MasterCard reports total assets of USD 12.5 billion.
About Access Bank Plc
Established in 1989, Access Bank Plc is a Nigeria-based commercial bank that provides institutional, commercial, retail banking, transaction and financial services. The bank has three non-banking subsidiaries – United Securities Limited, Access Homes and Mortgages Limited, and Access Investment and Securities. In the year 2012, Access Bank Plc had total assets of NGN 1.7 trillion (USD 11.0 billion), a gross loan portfolio of NGN 609 billion (USD 3.8 billion), deposits of NGN 1.3 trillion (USD 8.2 billion) and operations in approximately 310 branches across nine African countries and the United Kingdom.
About Unified Payment Services Limited (Unified Payments)
Unified Payment Services Limited (Unified Payments), formerly known as ValuCard Nigeria Limited in 2012, is a Nigeria-based payment processing services company that is owned by a consortium of 18 Nigerian banks. Unified Payments provides services in processing, merchant acquiring, switching, payment terminal and value added solutions. Additional information about its operations is unavailable. Despite having the same name, this firm is not related to the US-based payment processing services company, Unified Payments.
Sources and Additional Resources
[1] MasterCard Press Release: “MasterCard to Power Nigerian Identity Card Program,” http://newsroom.mastercard.com/press-releases/mastercard-to-power-nigerian-identity-card-program/
MicroCapital story, July 6, 2013, “MICROCAPITAL BRIEF: Etisalat, National Bank of Egypt, MasterCard to Launch Mobile Money Service in Egypt,” https://www.microcapital.org/microcapital-brief-etisalat-national-bank-of-egypt-mastercard-to-launch-mobile-money-service-in-egypt/
MicroCapital story, June 12, 2013, “MICROCAPITAL BRIEF: MasterCard Introduces “SME Online” Internet Payment Solution in Nigeria,” https://www.microcapital.org/microcapital-brief-mastercard-introduces-sme-online-internet-payment-solution-in-nigeria/
MicroCapital story, December 6, 2012, “MICROCAPITAL BRIEF: Access Bank Plc of Nigeria Launches Early Saves Back to School Campaign to Promote Saving Among Kids,” https://www.microcapital.org/microcapital-brief-access-bank-plc-of-nigeria-launches-early-savers-back-to-school-campaign-to-promote-savings-among-kids/
MicroCapital story, November 17, 2009, “MICROCAPITAL BRIEF: Access Bank Plc. and State of Anambra, Nigeria Launch $16.5m Microfinance Scheme,” https://www.microcapital.org/microcapitalorg-brief-access-bank-plc-and-state-of-anambra-nigeria-launch-165m-microfinance-scheme/
MicroCapital Universe Profile: MasterCard https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard
MicroCapital Universe Profile: Access Bank Plc https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Bank+Plc.
MicroCapital Universe Profile: Unified Payment Services Limited (Unified Payments) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unified+Payment+Services+Limited
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