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By Chinwendu Obienyi
Money and monetary exchange have always been an integral part of man’s life.
During the caveman era, the use of barter exchange enabled the exchange of goods and services but there were certain flaws to the barter system like no measure of value, the problem of divisibility, and mobility.
These flaws led to the emergence of gold-plated florins and paper currencies which are widely popular even today.
However, there has been a significant shift and this, to a great deal, is owing to the elevated use of the internet and technology which has made it possible to use a digital network to make a mobile payment. The evolution of the internet and technology, the future of electronic payments such as plastic cards, electronic fund transfer, e-cheques, and cryptocurrency payments have become very clear.
Furthermore, the rising popularity of e-commerce and increased internet usage has fostered innovative payment processes digitally by enabling various electronic payment options. These options include debit cards, credit cards, e-wallets, digital processing, electronic cash, etc.
It is said that the scenario and growth of the electronic payment medium are on the rise and that this will continue to grow with evolving technologies and enhanced security of the banks.
Payment gateway and challenges
Payment gateway is a system that the merchant uses to receive payment electronically from their customers. It is a customer-oriented technology used by merchants to collect their credit.
Also, the electronic payment processor focuses on providing security, atomicity, accountability, anonymity, and fairness in the transaction process.
However, there are some challenges associated with payment gateways. This sometimes causes a great deal of significant financial loss if poorly handled and if used inefficiently, can cause damage to the merchant as well as customers.
These challenges can sometimes be attributed to the number of available options in the market due to the fact that individuals and businesses no longer depend on banks for collecting payment and this in turn has heightened the standard of competition in the financial industry.
These challenges include; Data security, technical glitch, loss of cost and time, cybercrime, inadequate banking infrastructure (especially in the rural areas).
Having listed the challenges, what then are the solutions to these challenges and how can they be addressed?
Stakeholders reaction
Economic experts who spoke during a panel session at the 5th edition of the Lagos Leather Fair in Lagos recently, said that the adoption of payment gateways with digital payment has resulted in impacting Nigeria’s economy as well as Africa’s.
They however advocated for a much better mechanism for trade across Africa, availability of FX as well as collaboration. Tech entrepreneur and Chief Executive Officer, brij, Ehi Binitie, said Africa has the same problem regarding availability of sufficient FX while noting that the continent needs to provide a much better mechanism for trade.
“I think one of the major issues with the industry is how long it takes to settle a transaction beyond the payment experience and this is the question in every mind of business owners. Nigeria represents almost 50 per cent of intra-Africa trade and so when we do not have a “trust infrastructure”, then these challenges with payment gateways cannot be solved.
For her part, the Founder, LLF and Creative Director, Femi Handbags, Femi Olayebi, stated that there is a need for the continent to take clear and tangible steps from tactical and strategic perspectives which will result in achieving the desired goal of fostering collaborations and investments in the industry.
