Mobile Money Africa

mpesa

Faulu Kenya has entered into a partnership with PesaPoint that will see its customers access cash through the firm’s ATM network.

The strategic partnership aims to widen Faulu Kenya’s reach in its drive to expand a customer base among millions of unbanked Kenyans.

PesaPoint will provide access to its 113 ATMs which are available in 46 towns countrywide.

“We want our customers to enjoy access to their money with ease and affordability as we strive to offer them excellent, dignified services,” said John Mwara, the Faulu Kenya CEO during the signing of the deal on Thursday.

The ATM network will now offer convenience to over 200,000 Faulu Kenya customers through Faulu’s Daraja card — which has been operational for the last eight days — and open up reach to those who do not currently have access to its branch network in remote areas such as North Eastern.

Faulu Kenya joins the rapidly growing family of financial institutions getting connected to the ATM network, which is providing an avenue to dispense innovative services to customers.

Kenya’s micro finance sector currently has more than 50 players offering mainly loans and savings services, most are now moving towards sustainability as they have developed over the years through grant funding.

Faulu Kenya, a deposit taking micro-finance institution, has a network of 26 branches countrywide of which six are in Nairobi.

Mr Mwara said the partnership marked another milestone in the financial sector, which will see it increase the range of services and channels available to the un-banked masses.

“This is keeping in step with expectations of our customers since Faulu Kenya received its deposit taking license from the Central Bank of Kenya in June 2009,” he said.

In January, the bank launched its first e-banking service through a new account, Pesa Chap Chap, which puts it in direct competition with Safaricom and Equity’s M-Kesho, as they both target the same market.

“We don’t see M-Kesho as a threat though because there is still a large number of the un-banked and all we need is a fraction of that market. We have also partnered with several other money transfer services such as Zap to increase our channels,” said Mr Mwara.

The Pesa Chap Chap account allows the holder to save, apply for credit as well as deposit via their mobile phones.

PesaPoint is however likely to encounter difficulties as most clients at the bottom tier of the financial services pyramid prefer withdrawing smaller denominations of Sh100, Sh200 and Sh500, which will prompt the firm to review service charges downwards to accommodate this market.

“Our customers are mostly self-employed and would like to have access to their cash anywhere and in smaller denominations,” said Mr Mwara.

Immediate benefits

It currently costs Sh65 to transact over the PesaPoint ATM, but Bernard Matthewman, the PesaPoint CEO, said a review would be considered depending on the transaction volume they will handle from Faulu Kenya’s clients.

The deal does not offer immediate benefits to PesaPoint as it only generates income from transactions conducted through its infrastructure, hence prospects are low for now.

“We consider this deal as an open opportunity which is likely to start giving back returns over the next one year,” said Mr Matthewman.

Customers will access their approved loans through the ATM network and could in future be able to deposit via the same.

The ATM network, which is part of the Paynet Group operating in East Africa and Zimbabwe, aims to extend the reach of financial services.

“Through the use of technological innovations, PesaPoint continues to effect social change through meeting the needs of the under-banked market via its various platforms,” said Mr Matthewman.

Faulu gained prominence when it became the first micro finance company to issue a bond at the Nairobi Stock Exchange, working in collaboration with Stanbic Bank and Angence Francais de Development, through which it raised Sh500 million.

The micro finance institution begun 19 years ago when the Faulu Loan Scheme was initiated in 1991 to help a handful of entrepreneurs who wanted to do business but could not access services from mainstream banks.

Safaricom’s M-PESA and PostPay customers do not have to register their lines afresh during the SIM card registration exercise currently ongoing in the country.

However, the company says the customers should verify their details as recorded by the firm.

The SIM card registration exercise was launched on Monday, June 21 by the market regulator Communications Commission of Kenya, with the support of the country’s four mobile operators and is scheduled to close by the end of July.

This followed a presidential directive issued in July last year following widespread crime being perpetrated through mobile phones and is expected to act as a deterrent, while making the work of investigating agencies easier.

Under the new rules, users are required to give their postal and physical addresses, dates of birth and alternative phone numbers, besides their names and identity cards. The directive also applies to those buying new SIM cards.

Safaricom has a total subscription of over 15 million customers out of which 10 million are M-PESA subscribers and Safaricom’s announcement would be a major reprieve for the customers.

Safaricom has already kicked off the registration process at it’s over 31 Safaricom Retail Centers countrywide. Subscribers can also register their details at 2,500 Safaricom dealer outlets and 1,600 M-PESA agents countrywide.

Safaricom Chief Executive Officer Michael Joseph urgedl Safaricom subscribers to visit the company’s retail outlets and other registration points countrywide to have their SIM cards registered.

‘We have put in place all the necessary measures to ensure a smooth process. Besides our Retail Centers, dealers and M-PESA agents have also been mobilized and sensitized to assist in this important process,’ he said.

‘ They can also download the registration form from our website www.safaricom.co.ke or portal www.safaricom.com, print it out and present the completed form at any of our registration centres. We are urging our subscribers not to wait till the last minute to register,’ he added.

Minors will be required to be accompanied by an adult, who will register as the owner of the card while the minor will register as the user.

Subscribers are not supposed to pay any fee order to be registered and the government has asked them to report anyone asking for cash from them.

MTN on Thursday launched its Mobile Money Train in Bolgatanga with a call on the public especially businesses, to take advantage of the money transfer system to expand their businesses. Mrs. Lucy Awuni, Upper East Deputy Regional Minister, who launched the facility, noted that it would not only quicken the tempo of business transactions, but will also protect business persons who carry huge sums of money on them while travelling.

The mobile money transfer enables a customer to send or receive money on his or her phone, buy airtime and pay utility bills while at home, office or market. It is said to be time-saving, less risky and controls other important resources, as it is convenient.

Mrs. Awuni said the Government would continue to create and maintain an enabling environment for existing and prospective investors in the telecommunication business, to enable them provide a reliable and cost-effective world-class service for the Ghanaian populace. She noted that the good business environment would also encourage healthy competition among the operators of the telecommunication venture, thereby resulting in the growth as well as innovations in the industry. She however said, “Most people have been complaining about the poor network of telecommunication providers in the sense that one may at times find it difficult in reaching the intended recipient.

“In some situations, the call will be connected to the recipient but one would not be able to hear any word, whilst the credit continues to run”. Mr. Abdul Majeed Rufai, Senior Manager of the Mobile Money Implementation (MMI), explained that the mobile money service, provided mobile phone users with the convenient option of opening and operating an electric wallet or a full bank account primarily from their phones, saying that would make it possible for one to have both an electronic wallet and a full bank account in operation.

He described it as convenient, accessible, safe and trustworthy, and said MTN was giving her customers an opportunity to catch up with the latest trend in the financial world. The service is linked up with nine banks in the country. They include, Ecobank, Fidelity Bank, GT Bank, CAL Bank, Stanbic Bank, UBA, Merchant Bank and Intercontinental Bank.

FrontlineSMS:Credit, the future of mobile microfinance, is proud to announce the addition of Menekse Gencer, a leading expert in the field of mobile payments, to its esteemed advisory board.
Menekse Gencer, the high tech mobile and financial services luminary, is the founder of mPay Connect, a
consulting service benefiting financial institutions, mobile network operators and third party platforms
seeking to launch mobile payments to banked and unbanked customers worldwide. Her market expertise
extends from North America to emerging markets such as Bangladesh and sub?Saharan Africa where she
has keenly observed how the convergence of mobile devices and electronic money movement is impacting
local economies and the livelihoods of people in profoundly positive ways. Prior to founding mPay
Connect, Gencer led PayPal Mobile’s business development efforts in North America and is credited with
closing PayPal’s first mobile network operator deal to launch PayPal Send Money on Sprint’s mobile
wallet. Previously, she led Gateway’s open source efforts and launched their first Linux?based server line.
“We are grateful to have Menekse officially inducted into our advisory board. She has been a mentor to
our organization since its inception with her unyielding encouragement and support,” says Ben Lyon,
Executive Director of FrontlineSMS:Credit. “As one of the leading experts in mobile money, she truly
knows the business thoroughly and its key players. She has made the initial stages of our development
possible through connecting us with essential partners and funders that have fostered our organization’s
continued growth.”
“We need organizations like FrontlineSMS:Credit to realize the vision of financial inclusion worldwide.
Leveraging open source a

FrontlineSMS:Credit, the future of mobile microfinance, is proud to announce the arrival of Jan Chipchase, the widely renowned expert on human centered design, to its advisory board powerhouse.

Chipchase cemented his reputation as the authority on applying human centered insights to product development through his role as chief usability researcher at Nokia. Through his work for the Finnish mobile giant, he spearheaded complex, international design projects that took him around the globe to absorb the vast emotional, social and cultural implications that accompany the arrival of technology.

Through his ground intelligence gathering, he discovered that people in Africa use cell phone minutes as a local banking system to transfer calling card minutes to others who redeem them for cash. In India, cell phones are used to dissolve indentured servitude by allowing housekeepers to book out their services beyond a single household. Such studies of local behavioral patterns continue to influence the design of mobile money services for emerging markets and to inform the design of mobile devices that are more accessible to people with low or non existent levels of literacy. Chipchase is currently the Executive Creative Director of Global Insights for global innovation firm frog design, where he oversees their user research practice while leading the expansion of the firm’s presence in Asia.

“Jan brings unparalleled anthropological insight and a wealth of valuable experience to our growing
team,” said Ben Lyon, Executive Director of FrontlineSMS:Credit. “His advisory role will be crucial to
implementing systems that are design appropriate. We are thrilled to have him on board as we begin
to launch our software model across the developing world.”

“I’ve seen first hand the positive effect that access to basic financial services such as credit and the
safe?storage of money can have on micro entrepreneurs and the communities that they serve.
FrontlineSMS:Credit’s vision of leveraging rich social practices with mobile phones and scarce
infrastructure is one that deserves to succeed,” said Chipchase.

Jan has delivered keynote speeches at numerous conferences such as TED, CES, LIFT and the Global
Philanthropy Forum and his work has been profiled extensively in the New York Times and the
Economist, among other publications. He writes about the intersection of people, technology, and
culture at janchipchase.com.

FrontlineSMS:Credit leverages mobile payment systems and core banking software to bring financial
services and microfinancing to the unbanked poor in the developing world. By helping microfinance
institutions integrate mobile payments into their business strategies, FrontlineSMS:Credit aims to
eliminate geographic barriers to financial inclusion, turning mobile payment systems into platforms
for mobile banking. FrontlineSMS:Credit is a winner of the Vodafone Americas Foundation Wireless
Innovation Project, based on their ability to leverage wireless technology to help solve critical
challenges faced in developing countries.

For further information, please contact:
Ben Lyon, Executive Director, FrontlineSMS:Credit
ben@credit.frontlinesms.com

MoneyGram

The National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, has joined hands with MoneyGram International (NYSE: MGI), a leading global money transfer company, to become the first MENA bank to allow mobile phone international remittances to more than 200,000 locations across 190 countries & territories around the globe.

The agreement between MoneyGram and NBAD will make it easier and more convenient for consumers in the UAE to send money transfers via their mobile phone to family and friends around the world. The partnership also gives MoneyGram access to NBAD’s account holders in the UAE and extends the benefits of safe and reliable money transfer services to a new category of consumers.

Arrow money transfers, including MoneyGram international remittances, can be carried out from a current account and prepaid cards.

Almost two years after NBAD introduced its Arrow service, the country’s first mobile phone money transfer and payment service, the Bank has integrated Arrow with MoneyGram to enable consumers to transfer funds directly from their NBAD or a prepaid account to persons outside the UAE via mobile phones.

UAE has been recognised as a major source of remittances worldwide. The World Bank recently estimated remittances from the UAE to be between US$15 billion and US$20 billion in 2009 with potential to continue growing in the coming years. In GCC, the size of the remit market is nearly US$50 billion.

UAE also has one of the highest mobile phone penetration rates in the world as the rate for mobile phone users in the UAE stood at more than 190% of the population.

“An overwhelming majority of expatriates in the UAE remit money to their families in their home countries. The Bank wanted to bring to the market a product that serves this large demographic. We worked very methodically for more than a year with our partners to fine-tune the Arrow service to ready it for consumers to use it to conduct international remittances,” said Saif Al Shehhi, the Senior General Manager of Domestic Banking Division at NBAD. “NBAD understands a key component to delivering quality service is by being a leader in innovation. The Arrow mobile phone payment service and its expansion into international remittance is another example of NBAD’s innovative leadership in the market place.”

“With more than 4 billion mobile phones in use around the world today, we recognize the critical role that mobile technology is playing in the evolution of the remittance market. This partnership with NBAD reinforces our commitment to deliver innovative mobile money transfer products and services and provide consumers with more accessible, affordable and secure options to send cash around the world,” said Nigel Lee, MoneyGram’s executive vice president for Europe, Middle East, Africa, and Asia Pacific.,

The expansion of the Arrow service to international remittances with MoneyGram constitutes the third phase of enhancement and improvement to Arrow. In the first phase, introduced in November 2008, Arrow allowed customers to access their bank accounts via mobile phones to pay, send, and receive money domestically 24 hours a day.

NBAD developed the Arrow service with Luup, a world leader in the mobile payment industry.

In the months that followed the initial introduction in November 2008, NBAD and Luup increased the range of its services outside NBAD current account holders to include transfer from prepaid cards linked to salary (Ratibi cards), and to non-NBAD customers who could transfer funds from their prepaid cards. Offering international remittances through MoneyGram is the culmination of 18 months of work that NBAD and Luup have undertaken in developing this service.

“NBAD strives to provide services and products that genuinely deliver utility and value to consumers. Given how many people need to remit money to other countries, this service greatly meets a need in the market place,” said Ahmed Al-Naqbi, the Senior Manager of Channels and Electronic Banking Services at NBAD. “As UAE’s Number One Bank, NBAD is on the forefront of bringing to the market the latest banking technology to provide customers with a fast, secure, reliable and convenient banking experience.”

“This new partnership with NBAD will start to define the use of Mobile remittances in the UAE as well as the region,” said Richard Meredith, MoneyGram’s Regional Director for Middle East, Pakistan & Afghanistan. “This service demonstrates one of MoneyGram’s core values in making remittances convenient.”

Joseph Ziem

Management of Mobile Telecommunications Network (MTN-Ghana) has launched the MTN Mobile Money service in Tamale, the Northern Regional capital, aimed at making money transfers and business transactions between people less difficult and efficient.

The MTN Mobile Money platform provides any mobile phone user with the convenient option of opening and operating an electronic wallet or full bank account primarily from their phone.
This service, according to MTN officials makes it possible for one to have both the electronic wallet and a full bank account in operation.
Senior Manager in charge of MMI at MTN, Abdul-Majeed Rufai, explained that the MTN Mobile Money service is convenient, accessible, safe and can be trusted completely. Adding, “this means that MTN subscribers who register for the service will enjoy the benefits of a long list of conveniences”.
He listed among other things some of the benefits one could enjoy which include people sending money in a hassle-free manner to their colleagues and loved ones, paying their utility bills without having to travel or stand in a queue and recharging their prepaid cards at their own convenience.
Mr. Rufai emphasized that, the MTN Mobile Money registration also covers customers in the ongoing mandatory subscriber registration by National Communications Authourity (NCA).

According to him, the world is changing every single day and MTN was giving its customers the opportunity to catch up with the latest trends in the financial world.
He explained that, whilst there might be similar products or services on the Ghanaian market that intended to ease the public’s payment transactions, most of them served a small subsection of today’s telecommunications customers and have been patronized by only a few, saying “it has been MTN’s goal to bring this ease of transfer to the masses and improve the lives of our many cherished subscribers”, he pointed out.
Recognizing how close the average Ghanaian is to his or her mobile phone, Mr. Rauf said MTN took the initiative to partner with a number of financial institutions/banks including Ecobank, Fidelity Bank, GT Bank, CAL Bank, Stanbic Bank, Zenith Bank, United Bank for Africa (UBA), Merchant Bank and Intercontinental Bank to develop the MTN Mobile Money service.
He stressed that, not only does this innovative service makes daily payments smoother and more efficient; it also ensures that all transactions take place with the utmost security.
The Chief Director at the Northern Regional Coordinating Council, Mr. Joseph Dasanah, who launched the MTN Mobile Money service, implored Ghanaians to embrace the product in order to make Ghana a cashless economy.
He said in most of the developing countries people no longer carry money on them to buy goods and services because of the numerous inconveniences that money posed and urged businessmen and women to make use of the MTN money transfer services which is not only operational in Ghana but also in most of the African Countries that MTN operates.

As part of efforts to bridge the gap between the banked and the unbanked population of Nigeria, eTranzact in conjunction with International Finance Corporation (IFC), a member of the World Bank Group, have embarked on a pilot project for the rural areas in Nigeria called Rural Telephony Project (RTP) MobileMoney.

RTP MobileMoney powered by eTransact is an initiative designed to bank the unbanked populace in Nigeria and Africa.
This program is built on the high mobile phone penetration and low banking coverage in Africa.

Traditional banks tend to locate their branches away from poor communities, which limit their ability to access banking services.
The mobile banking program for the unbanked seeks to improve access to banking services through the use of mobile phones.
eTranzact is Nigeria’s first award winning multi-application and multi-channel electronic transaction switching and payment processing platform.

The company has operations in Nigeria, Ghana, Zimbabwe, Cote d’Ivoire, South Africa and UK and aims to provide Nigerians, Africans
and ultimately the world with cutting edge payment solutions.

IFC provides investment and advisory services to help businesses in the developing world meet the challenges of the global marketplace.
IFC is presently working with three mobile payment companies, Wizzit for South Africa, Ferlo for Dakar and eTranzact for Nigeria to run the MobileMoney programme in Africa.

RTP MobileMoney is being run with 3 Micro finance institutions, DEC, SEAP & Oghene with 50 Village Phone operators (VPOs) located in remote communities

First Bank of Nigeria is providing the banking backbone, as stipulated by the Central Bank of Nigeria guidelines, while three microfinance Institutions partners – Development Exchange Centre (Bauchi in the North), Socio Economic Advancement Program (Kwara in the West) and OGENE (Enugu in the South) are serving as touch points for the unbanked.

MTN Nigeria is also on board to provide communication gateway for the transactions. Each MFI would have distinguishing mobile account number schemes. This will identify every mobile account holder created based on their MFI’s.

The eTranzact MobileMoney Platform is a multi network capable and interface seamlessly with the third party payment schemes and the product has been specifically designed to improve access to finance to rural customers or those with little or no access to banks.

mobiFEST 2010 – Reaching the M-Generation.


University of Lagos
Multi Purpose Hall A,B and C
AND
Afe Babalola Conference Center.
August 17th and 18th

Nigeria’s first and largest mobile application event will be in Lagos less than seven weeks and a key focus for this inaugural event is not surprisingly – Mobile applications in a leading market in Africa where mobile subscription level has surpassed the 50% mark and still counting. The event is targeted at the M-Generation which are upwardly mobile and are ready to go.

According to a recent study in Nigeria by Pyramid Research,it finds that mobile services have positively influenced every aspect of Nigerian mobile end users’ lives. Mobile services are:helping people access information,creating business opportunities,lowering transaction costs and enhancing social interaction.. “The study concludes that mobile services have ample reach in Nigeria, with mobile subscriptions in the country reaching almost 73 million by the end of 2009, resulting in a mobile penetration rate of roughly 50 percent of the population, ” says Badii Kechiche, Senior Analyst at Pyramid Research.

The mobile applications Pavilion at MobiFest 2010, which will run from August 17 to August 18 at the hub of Nigeria’s most concentrated Youth market,YABA – Lagos and will be hosted at the University of Lagos Auditorium with captive student population of 35,000,a kilometer away from Yabatech with 22,000, Lagos university teaching hospital – 10,000, Federal college of Education 18,000, Lagos state university, Yaba campus with 8,000 and more than 7 federal government organizations within 4 kilometer range.

The expo will host :

Independent mobile application developers / vendors.
Device manufacturers.
Content providers.
Integrators and Aggregators.
SMS services providers.
Location based services.

Covering mobile financial services,Mobile Insurance, entertainment, enterprise solutions, mobile govt,tracking services, Health,informational,who will showcase their latest mobile applications and solutions to a ready and willing segment.

There will also be Showcase highlights sessions from leading sponsors and also connect young innovative developers in touch with industry experts and decision makers.

Developers Hub

Developers hub is an “event within an event” at Mobifest 2010 that will present a unique opportunity to tap into local resources that is available in Nigeria and connect with young innovative players that are striving to enter the mobile applications market.
The developers hub Showcase at Mobifest is an area on the show floor dedicated to young innovators demonstrating and displaying their innovative mobile applications.

Who should attend?

Marketing and communication agencies that needs to understand the growing importance of mobile applications to their industry.
Financial,Insurance Institutions and Micro finance Banks seeking for cost effective mobile Banking and financial solutions.
Religious,NGO and Government agencies seeking new innovative channels to engage the citizens.
Application developers interested in staying current on the latest developments from the largest platforms.
Content providers seeking new, directed networking opportunities.
Operators who want to find that next cutting edge app that will help attract and retain customers.
Device makers and platform owners trying to recruit the best app developers.

Mobifest 2010,will be the largest event focused exclusively on the mobile applications ecosystem and will attracts thousands of mobile product enthusiasts looking to discover the latest developments and hottest products for different industry segments.

With over thousands of mobile applications available for download online plus thousands of new smart devices applications debuting each day, getting your application noticed quickly and efficiently can be challenging. Mobifest 2010 can help.

Take advantage of all the benefits of what a face-to-face event brings at an incredibly affordable price.
For the full list of packages and benefits in the MobiFEST 2010, please see below.

MobiFEST 2010 – Standard Package – N250,000.

• One (1) station of a 4-sided kiosk (9ft /9ft).
• One (1) 29” H x 11 1/8” promotional sign.
• One (2) outlet for device charging .
• Wireless Internet services available.
• Exhibitor company listing and description in on-site guide.
• Free expo guest passes to invite customers/prospects.
• Exclusive access to hundreds of pre-registered MobiFEST media.
• PR Kit to help you maximize your reach to media attending the event
• Pre-show media alerts and on-site press event opportunities

MobiFEST 2010 – Silver Package – N450,000.

• One (1) station of a 4-sided kiosk (11ft / 11ft)
• Venue Branding and promotional
• One (2) outlet for device charging .
• Wireless Internet services available.
• Exhibitor company listing and description in on-site guide.
• Free expo guest passes to invite customers/prospects.
• Exclusive access to hundreds of pre-registered MobiFEST media.
• PR Kit to help you maximize your reach to media attending the event
• Pre-show media alerts and on-site press event opportunities

mobiFEST 2010 – Developers Hub – N50,000

• Single Table with two chairs.
• One outlet for device charging.

MobiFEST 2010 – Sponsorship Gold Package – N2,000,000
• Outdoor and prime location Kiosk / Tent.
• Event venue Branding and promotion.
• Showcase presentation.
• Promotion on ALL event collateral.
• One (4) outlet for device charging .
• Wireless Internet services available.
• Exhibitor company listing and description in on-site guide.
• Free expo guest passes to invite customers/prospects.
• Exclusive access to hundreds of pre-registered MobiFEST media.
• PR Kit to help you maximize your reach to media attending the event
• Pre-show media alerts and on-site press event opportunities

For Booth Confirmation and Sponsorships,Please email:Ehi@mobilemoneyafrica.com or +234 8030818868.
Follow us on FaceBook:http://www.facebook.com/home.php?#!/event.php?eid=126150707421948&ref=mf

Lead Event Partners.

Source: FinancialtechnologyAfrica.

The Central Bank of Nigeria (CBN) has stopped the Nigerian Central Switch
(NCS) drive to decree itself into a monopoly in the e-payment sector of the economy. At a
meeting with all the stakeholders in the e-payment, the apex body through its Deputy
Governor, Mr. Tunde Lemo reversed almost all the prayers sought by NCS. Present at the
meeting were the switching companies, card schemes, Independent ATM Deployers (IADs) and the
banks. All contentious issues surrounding the operations of the NSC were reviewed.

According to the Operational Rules and Regulations for the NCS released by the CBN, “The NCS
is designed to provide interconnectivity and interoperability amongst approved electronic
fund transfer (EFT) switch initiatives in Nigeria.

However, NCS had in recent times mandated banks in the country to connect to it on or before
14th May, a development that did not go down well with the switches, IADs and some of the
banks. Besides, NCS had also ordered the IADs not to connect to any other switches except
NCS.

Earlier, NCS had wanted to connect to MasterCard and VISA through the banks, claiming that
it had no business undergoing the often mandatory certification from these global payment
brands. Sources at the meeting say Lemo frowned at a situation whereby the “value creators”
would be muscled out of the e-payment business by a monopoly that was decreed into
existence.

Accordingly, the CBN directed that IADs can connect to the switches based on agreed
commercial bi-lateral arrangement. While the banks can connect to NCS, connections to the
switches are based on pre-agreed commercial bi-lateral arrangements.

CBN therefore encouraged NCS to undergo all the card scheme certifications in readiness for
transaction processing. The Bankers Committee in 2005 initiated the establishment of the NCS
to be operated by the Nigeria Interbank Settlement System (NIBSS), and which would connect
all the banks and card schemes (switches), hence, making it possible for banks customers to
use their cards on any payment device irrespective of the owner.