Virtual Terminal Network (VTN), a mobile payment company in Nigeria, recently announced plans to launch VCASH, a mobile payment service that recently received approval from the Central Bank of Nigeria (CBN), the country’s financial regulator. The VCASH system holds money as stored value (e-money), a method that involves no credit exposure. VCASH is expected to greatly expand the number of Nigerians with access to mobile payment systems, in line with CBN’s cashless policy drive.
VTN CEO Peter Ojo reportedly said that, “Vnetwork had offered an e-commerce payment platform in 2007 as an experiment to learn how to tackle the payment needs of the general public.” Over time, that system evolved into VCASH on the VTN present platform.
VCASH will also provide opportunities for cash agents across the country. “We have metrics, goals for numbers of agents”, said Mr. Ojo, “but more important is the quality of the agents. We emphasize agent training and provide unusual levels of support.” Data such as the number of customers currently served by VTN is not available.
By Chioma Okwudiafor, Research Associate
About Central Bank of Nigeria
The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the Act of Parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government”. CBN has 37 branches across Nigeria and staff strength of 5995. As of November 2011, CBN reports total assets of NGN 9.77 trillion (USD 61.9 billion).
Sources and Additional Resources:
Mobile Money Africa Story: “Nigeria-VNetwork Receives Final License to Rollout VCash Mobile Payment Service”
http://mobilemoneyafrica.com/nigeria-vtnetwork-receives-final-license-to-rollout-vcash-mobile-payment-service/
MicroCapital Universe Profile: Central Bank of Nigeria
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Central+Bank+of+Nigeria+%28CBN%29
MicroCapital Story: November 12, 2012, MICROCAPITAL BRIEF: To Boost Usage, Mobile Money Service Providers in Nigeria Told To Focus on the Unbanked
https://www.microcapital.org/microcapital-brief-to-boost-usage-mobile-money-service-providers-in-nigeria-told-to-focus-on-the-unbanked/
MicroCapital Story: January 22, 2012, MICROCAPITAL BRIEF: To Promote Electronic Payments, Central Bank of Nigeria Taxing Cash Transactions
https://www.microcapital.org/microcapital-brief-to-promote-electronic-payments-central-bank-of-nigeria-taxing-cash-transactions/
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