E-payments in Nigeria Post-COVID

E-payments in Nigeria saw a total transformation during the lockdown. Yes, the pains of COVID-19 were felt but perhaps it left us with a few lessons too. We witnessed the difficulties associated with economic stagnation and knew the importance of business activities in any economy.

From the angle of finance, the pandemic gave insights into the future of payments in Nigeria. A study by Accenture revealed the limitation of cash and the increase of digital payment during the lockdown periods worldwide. For Nigeria, this is especially true.

e-payments COVID Nigeria

Even though people withdrew more cash than ever from ATMs around the country, less than 60% of that cash was actually spent. This was due to cash hoardings by people amidst not knowing when the lockdown would be eased.

Lack of physical cash gave boosts to online payments. Cashless and contactless payments became the norm so as to reduce the risk of contracting the virus.

The long queues at ATMs were yet another factor. It was far easier to make payments digitally than paying in cash. Many individuals and businesses that could operate during the lockdown switched to electronic payment. All of these exploded e-payments around the country.

Just how much explosion? you might ask. In May 2020, e-payments in Nigeria jumped by 82% to ₦11.676 trillion from ₦6.421 trillion in April 2020. An all-time high!

Online retailers and payment platforms saw increases in patronage too, even as other consumer spendings decreased. This was evidenced by the increase in the number of online stores and internet marketers during the lockdown.

Now, as the country kick-starts full operations of economic activities, the question remains; would the rate of e-payments in Nigeria reduce, or would it increase in the coming months?

e-payments COVID Nigeria

Why e-Payment would increase

Electronic bill payments for goods and services around the country are only bound to increase. Here are two major post-COVID reasons why this would happen:

  • Personal Precautions:

The crisis may be relaxed but the ‘panic’ still exists for many. Millions of people would still prefer to take the safer route when making bills payments – that is to pay online.

Many health experts have warned about the risk of contacting COVID-19 from unaware, new carriers not detected during the quarantine. As such, the need to protect personal self from contacting the virus through cash handling or contact payment would keep a lot of people on the online payment track for a very long time.

  • Convenience:

For many, the quarantine was their chance to experience online payment for the first time. Convinence has been the major driver of e-payments since inception; it’s no wonder why a large percentage of new users would want to stick with the system.

World Bank already predicted that 25% of all money transfers would be done electronically by 2025; a chunk of that increase coming from new e-payment users in Africa. Convinence and speed of payment are major drivers that would prompt these new users to switch paymently to e-transactions.

new vtpass website

VTpass, driving e-payments in Nigeria.

Online bills payments are not reducing anytime soon. Instead, a lot more bill payers would make the switch from cash transactions in the future. You too can transit to paying bills online today.

Start by logging on to www.vtpass.com to pay bills in minutes. VTpass is Nigeria’s leading online payment platform that allows you to pay for the daily services you enjoy. You can top-up airtime or data, subscribe your GOtv, DStv, or Startimes, pay electricity bills, buy insurance, and do more.

Payments on VTpass are fast and easy and you get value for your money within minutes of transfers. Visit www.vtpass.com to get started or simply download the VTpass mobile app.

Insurance: 5 Common Myths vs Facts

What comes to your mind when the word “Insurance” is mentioned? Do you cringe or smile? There are sets of perceptions in most people’s minds about Insurance, but are these perceptions myths or facts?

There is no denying that insurance can be incredibly complicated, both in theory and practice. So it’s little wonder that sometimes rumors, myths, and untruths can be held as fact and disseminated as such.

In this article, we want to smoothen out some of the twigs from the drink. Here are 5 common myths about Insurance and the facts that prove them wrong:

Long read? Watch video summary instead

Myth 1: Insurance is expensive

Let’s start from where it concerns our pockets shall we? The popular misconception that only the rich can afford insurance is as funny as it sounds.

Let’s face it, that idea is so old and gone. With stiff competition in today’s insurance market, premiums for covers gotten more affordable. For some covers like motor insurance in Nigeria, prices can be as low as N2,500 a year!

The most remarkable of insurance cost is that of health insurance in Nigeria. A 2017 report puts the average cost health insurance plan at N35,000 for individuals and N125,000 for families. While this is affordable considering the cost of medical treatment in the country, you could get top-notch health covers (with private treatments) for even less at VTpass.

Now, imagine having all-round health insurance for only N15,000/year (N2000/month) for individuals and N60,000/year (N5,500/month) for families?

How affordable can that get?

insurance myths

Myth 2: Insurance companies are fraudsters

I was in a conversation with a friend one Saturday evening when an Insurance salesman walked by. His pitch was about how fast an insured would be compensated after a loss. You should have seen how my friend chased him away.

He did this because of the terrible experience he had with an insurer who refused to compensate him after a loss occurred against his burglary cover.

The mistrusts in insurance companies is perfectly understandable. Agreed, there are fake insurers out there who aren’t really in business to serve but to steal.

However, not all insurers are fraudsters. We have reputable, world-class insurers in Nigeria. In 2019, total claims paid out by insurance companies in Nigeria amounted to N98.9 billion; a 16.5% increase from N84.9 billion paid out in 2017. If all insurance companies are fraudsters, banks and top businesses would not commit hundred of millions annually to insurers to cover potential risks.

The solution is simply to buy insurance from reliable and trusted sources only. Companies that are backed but by NAICOM and duly regulated.

insurance myths

Myths 3: Is Not Safe to buy Insurance online

For real? Wow.

So we can literally buy airtime and data, work online, transfer money, pay electricity bills, do all kinds of stuff online – but not insurance? Terribly wrong!

Digital technology is the future no one can escape from. Today with reliable online platforms like VTpass, your cell phone, and internet connection; while sitting in your home or office, you can get any insurance you want!

At VTpass, we deliver your policy to you digitally and physically after purchase. When it comes to claims, you can trigger settlement by clicking the claim button on our website. It’s that easy.

Africa and transforming digitally, taking all industries in its whirlwind. A few years from now, there wouldn’t be need for person-to-person interaction before quality insurance is sold.

A word of advice though; only buy from proven and trusted online platforms. Visit www.vtpass.com/insurance today.

Myths 4: Buying Insurance takes a long and tedious process

If you’ve tried buying insurance in the ’90s you would be amazed by the paperwork that goes with it. Then there are the long questionings by medical examiners or risk assessors, etc.

All that is old news now.

Insurance companies have modified proposal forms and other documents to collect only the barest, necessary information (no one is going to ask if your mum had green eyeballs or not). Add that improvement to today’s digital technology and we have an insurance system that delivers covers in minutes!

insurance myths

Today, you can get a motor cover in less than 10 minutes when you buy at VTpass. No stress. We have eliminated the need for tedious processes with our innovative payment solution.

It’s no wonder why Nigerians rely on VTpass to get quality insurance covers day in-day out. Our secret is simply partnering with Nigeria’s top insurance companies with proven track records of prudence and claim settlement.

So if you ever have a need for car insurance, health cover plan, personal accident insurance, or home insurance; simply visit www.vtpass.com.

We’ve got you covered.