The Nigerian Postal Service, also known as NIPOST, has entered into an arrangement with the Central Bank of Nigeria to promote mobile banking.

Once the arrangement becomes operational by the end of this year, NIPOST will offer its branch network to the central bank and its member banks as part of a cashless-banking initiative.

Under the initiative, customers of partner banks use ATMs, payment terminals, online bankin, and mobile banking to transfer funds to other Nigerians. These customers would send payments from their accounts using the name of the beneficiary and his closest post office, according to a NIPOST spokesperson.

“Our abandoned and closed branches can also be used by the banks for use in the cashless-banking initiative,’ a spokesperson tells PaymentsSource.

Beneficiaries, who may or may not be banking customers, could then receive their payments from the post office as an e-value they can transfer to their own mobile wallets. How the authentication and verification process will work, and the role mobile carriers would play, is still under discussion, according to the spokesperson.

NIPOST has initiated discussion with the central bank and 23 partner banks, the spokesperson says.

The spokesperson was unable to provide any more additional technical details.

What do you think about this? Send us your feedback. Click Here.

 

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry