Amazon launches SA marketplace
Amazon has launched its South African market, officially beginning operations in its first African country. With 3,000 pickup points, buyers will also enjoy free delivery on their first order. News of Amazon’s South Africa marketplace launch broke in early 2022, with February 2023 slated as the launch date. The company ramped up hiring throughout 2023 and announced an official launch date in October 2023. The American e-commerce giant enters a market dominated by Naspers-owned Takealot which accounts for 48% of all online sales in the country. Takealot has stated that it sees Amazon’s entry into South Africa as a validation of the attractiveness of the country’s e-commerce market. E-commerce proxy battle between Walmart and Amazon brewing in South Africa Amazon’s entry sets up an interesting battle with incumbents like Takealot, whose competitive advantage is a great understanding of the South African market. The retail giant will also have to contend with the country’s rigid competition regulation landscape which has seen incumbents having to significantly restructure their operations. For example, in July 2023, the country’s competition regulator ordered Takealot to segregate its retail division from its marketplace operations. This was to prevent its retail services from accessing seller data and unilaterally stopping sellers from competing for certain brands. However, despite the complexities of operating in the South African market, Amazon also possesses competitive advantages to weather the storm. The company already has a significant market in SA, with Amazon.com being one of the most visited websites in the country. Amazon also has the financial muscle to take on Takealot which has over the years seen its growth rate dwindle from 72% annually to 15% over the last two years.
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Nigeria raises levy on e-transfers by 900%, analysts call for a transaction cap
Nigeria’s Central Bank will begin the implementation of an amended 2015 Cybersecurity Act that will levy a 0.5% fee on all electronic transactions on May 20, an increase of 900% from an earlier levy of 0.005%. It means an electronic transfer of ₦1,000 will attract a ₦5 fee while a ₦100,000 transfer will attract a ₦500 fee. The cybersecurity levy will be charged in addition to existing fees like stamp duty, a ₦50 charge on electronic receipt or transfer of money in any deposit money bank or financial institution on sums of ₦10,000 or more. When the levy goes into effect in two weeks, it will have only a few exceptions: money transfers within the same bank, salary payments, school fees payments, and loan repayments. Financial industry experts argue the new levy will constitute a burden for low-income earners who rely on electronic transactions for daily activities. The value of electronic transactions in Nigeria rose by 66% to over ₦600 trillion in 2023, according to the Nigeria Inter-Bank Settlement System (NIBSS). The Cybersecurity Act was first passed in 2015 and introduced a 0.005% levy on electronic transfers. A June 2018 CBN memo directed banks to collect the levy on “electronic transactions occurring in a bank or on a mobile money scheme or any other payment platform that have an accompanying service charge.” In 2024, the Act was amended and the levy was increased by 900% to 0.05% and it was extended the levy to cover fintechs, payment service providers, and other financial institutions. “It’s a little bit regressive. What we should be advocating for is an amendment to the law. There should be a cap on the transactions,” said a financial industry expert who asked not to be named so he could speak freely. On May 3, the National Security Adviser, Nuhu Ribadu called for an implementation of the amended act, highlighting the increased influence of the NSA. The cybersecurity levy will be remitted monthly to the National Cybersecurity Fund (NCF), managed by the NSA. Last week, the NSA ordered five fintechs to stop onboarding new customers and deemed crypto a national security issue.
Read MoreSEC chief invokes patriotism, asks traders to stop P2P trading as fears of a ban linger
The past week has been a rollercoaster for Nigeria’s crypto industry, with an imminent ban on p2p trading threatening to undo progress towards positive regulations. A publicised meeting of crypto industry players and the Security and Exchange Commission (SEC) on Monday afternoon was expected to ease uncertainty. Instead, it showed that the SEC, widely considered one of the country’s more progressive regulators, also believes that a handful of retail crypto traders are to blame for the volatility in the FX market. “What is very critical and which has brought about this meeting is the concerns regarding crypto P2P traders and their effect on the exchange rate,” said Emomotimi Agama, the recently appointed Director General of the SEC. He reiterated the need for crypto exchanges to delist naira from p2p trading pairs, a decision many had implemented in March 2024 after scrutiny of Binance began. ‘We ask that those involved in sharp practices that undermine national interest should cease and desist.” The DG spent the first thirty minutes pleading with crypto traders using the P2P method to stop citing the same national security concerns that have formed the core of the argument for a ban. “One of the things that needs to happen to save this space is the delisting of the naira on peer-to-peer platforms.” He encouraged the industry to root out “bad actors” giving the industry a bad reputation by naming and shaming them. And if an appeal to patriotism was insufficient, the SEC threw the industry a bone by promising it would not draft any regulation without its contribution. Some 300 guests were asked to share ideas and concerns that could help the regulator decide how to regulate Nigeria’s crypto market. “We have an open door policy towards all that mean well for this country, especially in the fintech community.” Ultimately, the crypto traders asked that the SEC set up a working committee and give them a month to prepare proposals. While it’s clear some type of regulation is coming, this meeting served only one purpose: to give the semblance of a regulator working with the industry to find a way forward. The fears over a p2p ban are very much alive.
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👨🏿🚀TechCabal Daily – South Africans want the right to repair
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning TechCabal is launching a podcast we hope will enhance conversations and improve insight into the people in the ecosystem. Please take a few moments to take this survey, and tell us what you’d like to hear on our podcast! In today’s edition Nigeria enacts new cybersecurity levy Nigeria’s POS agents to register with CAC India and Ghana buddy up with payment integration South Africans demand right-to-repair The World Wide Web3 Opportunities Regulations Nigeria enacts new cybersecurity levy Nigerian consumers will find themselves paying more for digital transactions in the near future. Why? The country has amended its cybersecurity law, and the amendment comes with a 0.5% “cybersecurity” levy. From May 20, all banks and fintechs in the country will have to charge a 0.5% levy on all digital transactions. The levy was announced in a circular released by the apex bank, the Central Bank of Nigeria (CBN), yesterday. Defaulters will pay for it: The new law also requires all banks and financial institutions to remit the levies to the government on the 5th of every month, or face fines not less than 2% of such company’s annual turnover. Salaries and loans are safe: Not all digital transactions will be taxed by this new cybersecurity levy. There are a couple of exemptions to Section 44 of the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 including salaries, loan disbursements and payments, intra-bank transfers, inter-bank transfers for customers with accounts at different banks, and social welfare payments like pensions. Will this deter digital transactions in Nigeria? Over the past year, due to cash scarcity, Nigeria has seen a boom in its e-payments sector. According to the NIBSS, the value of electronic payment (E-payment) transactions grew by 66% to ₦664.21 trillion ($464 billion) in 2023 from ₦387 trillion ($270 billion) in 2022. Across social media, critics now argue that this new levy—which will inevitably lead to an increase in bank charges for consumers—will deter the attainment of a cash-less economy. Some others, however, say Nigerians will adapt; It’s just 0.5% afterall, how much harm can it bring? Across Africa, at least 8 countries including Ghana, Tanzania and Zimbabwe have similar levies on digital transactions. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Fintech Nigeria’s POS agents to register with CAC Across Nigeria, POS agents are emptying queues at ATM stands. These POS agents—1.9 million of them—are spread across various neighbourhoods in the country, offering convenient access to cash withdrawals and a variety of other financial services. Owning POS terminals has also become a source of income for folks across the country, where levels of unemployment are at an alarming rate. More money, more problems: While POS agents have been a crucial contributor to financial inclusion in the 200 million populated country, they have also been prone to fraud incidents. Data from the Nigeria Inter-Bank Settlement System (NIBSS) says POS terminals accounted for 26.37% of fraud incidents in 2023. To curb this, the government in January buddied up with the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) to create a fraud flagging feature on POS terminals. The government is looking to add more layers of security and rein in fraud. The news: Per TechCabal, POS agents must now register with the country’s business registry, the Corporate Affairs Commission (CAC). Before now, CBN regulation only mandated fintechs to provide the names, physical locations and telephone numbers of agents while onboarding. The rule change means that fintechs have their work cut out for them. It’s an uphill climb to registration: Business registration is often a tedious task and might slow up the onboarding of new agents for these fintechs. However, a few fintechs like Moniepoint and Palmpay are staying ahead of the curve. In February, Moniepoint signed a deal with the CAC to help digitise the operations of over 2 million small businesses. Palmpay also inked a similar partnership with CAC to register over 200,000 businesses. Enjoy hassle-free transactions with Fincra Collect payments without stress from your customers via bank transfer, cards, virtual accounts & mobile money. What’s more? You get to save money on fees when you use Fincra. Start now. Fintech India and Ghana buddy up with payment integration In 2016, India launched its revolutionary Unified Payments Interface (UPI). Think of it as the Beyoncé of money transfers—flawless, fierce, and gets the job done in seconds. The UPI allows for instant and low-cost money transfers between bank accounts. Before then, the country used a system called the Immediate Payment Service (IMPS), which was a slower alternative to UPI. Before you wonder why you’re reading about India’s payment system, the country is offering its efficient payment system to our Ghanaian brothers. A Ghana-India partnership: Over the next six months, India will integrate the Unified Payment Interface (UPI) with Ghana Interbank Payment and Settlement Systems to enable instant fund transfers for users in both countries. What’s in for both countries? India is the third largest investor in Ghana. Both countries enjoy a good relationship as trading partners. Bilateral trade between both countries stood at $2.87 billion in 2022-23. The move will allow both countries settle bilateral trade payments in local currency, reducing dependence on the US dollar while strengthening the rupee. The linking of UPI with Ghana’s payment system is not a first. India has been lending a helping hand to other countries—France, the UAE, Sri Lanka, and Mauritius—in recent times. Accept fast in-person payments, at scale Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → Consumer Tech South Africans demand right-to-repair If you’ve ever wanted to repair your devices without visiting the originating store, then the
Read MoreUnleashing Africa’s potential: Overcoming monetary barriers for intra-continental growth
This article was contributed to TechCabal by Ifelade Ayodele. By 2050, a staggering one in four people globally will be African. This demographic surge underscores the pressing need for seamless interconnectivity and transactions within the continent. Despite being categorised as a developing continent, Africa is a hotbed of technological innovation, embracing change and producing some of the world’s brightest minds who are driving breakthroughs across industries. However, the stark reality remains: facilitating transactions within Africa often proves more challenging than international remittances. For years, the African diaspora and businesses operating across the continent have grappled with significant hurdles in sending money and facilitating transactions. Although payment gateways like Payaza have made strides in streamlining this process, substantial obstacles persist, hindering Africa’s economic potential. The root causes of this dilemma are multifaceted. Firstly, Africa’s varied monetary landscape poses a formidable challenge. Unlike Europe’s euro, the UK’s pound or the US dollar, most African countries operate with distinct currencies—Nigeria’s naira, Ghana’s cedi, Senegal’s CFA franc, and many others—creating a complex tapestry of monetary systems even among neighbouring nations. Secondly, regulatory barriers compound this complexity. In the European Union (EU), a single licence grants operational access across the continent via a regulatory provision known as passporting, on the other hand, operating in different African countries requires separate registrations, compliance with varying regulations, and navigating diverse barriers. This lack of regulatory harmonisation hinders efficiency and productivity. Perhaps a greater unification, akin to the vision of entities like ECOWAS, extending beyond mere passport access to encompass streamlined regulations and operational ease, could pave the way for a more integrated African economic landscape. Nevertheless, where challenges exist, opportunities abound. The potential for intra-African transactions is vast, with over 20 million people—surpassing the combined total of over 15 million migrants across the US, UK, Canada, and Europe—migrating within the continent, seeking ways to send money back home. While currency unification could offer a solution, more is needed. However, the strategic application of artificial intelligence (AI), coupled with harnessing the expertise and passion of talented individuals, holds immense promise in addressing these issues. Employing cutting-edge AI technology for real-time transaction routing and providing instant updates on the most efficient methods for transferring money across Africa could revolutionise business operations within the continent and empower Africans to thrive in an interconnected global economy. As we continue to refine and implement these solutions, we envision a future where conducting transactions within Africa is as seamless as it is across the continent, unlocking unprecedented opportunities for growth and prosperity. Together, let us embark on this transformative journey towards a more interconnected and prosperous Africa, where monetary barriers are no longer an impediment to realising our continent’s vast potential. — Ifelade Ayodele is the CEO and Founder of Blaaiz, an early-stage cross-border payments company revolutionising financial transactions for businesses and individuals across Africa, Canada, the US, and Europe. He is also a director at Payaza Africa Ltd. Before founding Blaaiz, Ifelade distinguished himself as a leader in the management consulting arena at Accenture UK.
Read MoreNigeria mandates 1.9 million PoS agents to register with CAC to combat fraud
Nigeria’s 1.9 million PoS agents, a key part of the country’s financial inclusion drive, must now be registered with the Corporate Affairs Commission (CAC) as part of plans to improve transparency and reduce fraud. Before this week’s directive, these fintechs onboarded agents by taking information like name, physical locations and telephone numbers, per the CBN regulatory framework for agency banking. Agents were provided with point-of-sale devices to perform transactions at a shop or a designated location. Fintechs like Moniepoint, OPay, and PalmPay dominate the contested agent banking business. This week’s new rule comes as fraud incidents involving POS terminals are rising. POS terminals accounted for 26.37% of fraud incidents in 2023, according to a fraud report by the Nigeria Inter-Bank Settlement System Plc (NIBSS). In January, TechCabal reported that the CBN was collaborating with the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) to create a new feature on PoS terminals to flag fraudulent transactions. PoS agents are ubiquitous because of the low barrier to entry and its popularity as a second income stream for small retailers. Keen competition means fintech startups in the space give out the POS terminals for less than the cost price and keep onboarding simple. The mandate to register those agents as businesses may make onboarding more difficult. Business registration is a tedious process that may require hiring a lawyer, increasing the complexity of signing up new agents. In February, Moniepoint partnered with CAC to help digitise the operations of over 2 million small businesses. “We made necessary integrations to ensure businesses can apply for CAC registration in the app,” a Moniepoint spokesperson told TechCabal. The company’s competitors are likely to ink similar partnerships to stay competitive and sign up agents who are a critical part of their business. In February, PalmPay entered a partnership with CAC to register over 200,000 businesses.
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Next Wave: Should customers get angry when private companies increase prices?
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 5 May, 2024 Should customers get angry when private companies increase prices? Consumers are questioning whether recent price hikes by companies such as MultiChoice, which owns satellite TV service DStv, are warranted. The sticking point? Should price hikes by companies in an inflationary environment make it to press? MultiChoice has faced media criticism for repeated price hikes across key markets like Nigeria and Kenya. In Kenya, prices have jumped three times in the past year. A simpler explanation is that MutiChoice’s decision to raise prises is not a simple case of exploiting its position in a limited market to boost its profits. Rather, it is in response to the harsh realities of the existing economic climate. Next Wave continues after this ad. In Q1 2024, investment in African startups took a nosedive, plunging by approximately 45.6% compared to Q1 2023. On the flip side, debt financing emerged as a rising star among funding options for these startups. Additionally, this period witnessed a flurry of expansion and acquisition activities in the African tech scene. Dive deeper into the latest happenings with our freshly unveiled quarterly report. Download Now Across many industries, inflation is driving up the cost of production, and MultiChoice is not immune to this. It is facing rising employee costs, fuel prices and currency devaluation in its key markets. These issues all combine to cut its profit margin on subscribers who use its satellite TV service. Partner Content: Read: SAIL Innovation Lab offers scholarship in game development to Lagos residents here. So, in this context, the subscription fee jumps are a measure to maintain profitability instead of a cynical attempt to boost profits from lack of business competition. While some argue that MultiChoice could absorb some of the price adjustments or focus on customer affordability over shareholder returns, the hike is more a necessary adjustment to survive in the current economic headwinds. This is why MultiChoice’s upward revisions reflect a complex economic landscape. While inflation squeezes profit margins, linking all price hikes solely to that wouldn’t be accurate. It is true that companies across the globe are raising prices, but some, like MTN and Airtel Africa have seen profit dips despite price jumps. Next Wave continues after this ad. On 16 and 17 May in Kigali, for its 11th annual summit, the Africa CEO Forum will call on its community of 2,000 business leaders, CEOs, investors, heads of state and ministers to seize this critical moment to shape a new future for Africa Click here for more infomation These issues show that there are other factors at play. For instance, it can be argued that large corporations continue to exert their power on less-performing companies. It means that they likely have more control over pricing even in stable inflation times. Yet, there is some truth to the idea that private companies set prices based on what their consumers are willing to pay. Private businesses perform wide market research to understand their target audience’s spending habits, and price sensitivity. They are able to determine their customers’ ideal spending based on a thorough assessment of their different price points. This is possibly the reason these corporations appear to be “reaping big” from their customers, yet it is their pricing strategy that aligns with customer willingness to pay. Next Wave continues after this ad. Subscribe to Property Flex and buy land for as low as N30,000 monthly. Visit Focusing on a consumer’s willingness to pay does not paint a complete picture. This is because a company’s success anchors on more than subscription fees. There are other factors like stronger branding and high-quality products or services that can be associated with a company’s financial well-being. At this point, consumer choice comes into play. Customers or consumers aren’t simply forced to spend based on a company’s pricing strategy. They make conscious decisions about where their money goes, and companies need to justify their prices by offering something truly valuable. This value proposition could come in the form of convenience, status associated with the brand, unique features the product offers, or exceptional customer service. Next Wave continues after this ad. Want to become a pro at Product Management? Join our intensive 4-week program starting on May 4th, 2024. Join the cohort for an immersive learning experience, tailored to make you an expert in the field. During the program, you’ll explore theoretical classes, do practical exercises, collaborate in groups, complete assignments, and use valuable product templates. All sessions are conducted virtually, offering flexibility and accessibility to learners worldwide. By the end of the program, you’ll receive a Certificate of Completion, validating your expertise in Product Management. Don’t miss this opportunity to advance your career and become a proficient Product Manager. Secure your spot now and embark on a journey towards success in the dynamic world of product development. Click here to get started In most markets, competitors exist, offering similar products or services. If a company sets excessively high prices, consumers have the power to choose a more budget-friendly alternative. While companies do consider consumer willingness to pay, it’s just one piece of the puzzle in their overall pricing strategy. The idea is that if the price doesn’t reflect true customer value, the business fails. Until then, what people are willing to pay dictates the market price. This is a natural economic process. Next Wave ends after this ad. GITEX Africa returns a second time on May 29–31, 2024 to Marrakech, Morocco, discussing ways to accelerate the continent’s digital health revolution. GITEX is the continent’s largest all-inclusive tech event renowned for uniting the brightest minds in the technology industry Grab your tickets here
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👨🏿🚀TechCabal Daily – Egypt partners up with Italy for an African AI hub
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning The second edition of TechCabal’s Moonshot Conference is set for October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria. Moonshot will assemble Africa’s biggest thinkers, players and problem solvers on a global launchpad for change. If you want to join the stakeholders in Africa’s tech ecosystem for three days of insightful conversations, then get an early-bird ticket at 20% off. In today’s edition Is a crypto ban imminent in Nigeria? GTCO breaks Nigeria’s profitmaking record Egypt partners up with Italy for an African AI hub South Africa announces national AI policy The World Wide Web3 Opportunities Crypto A new crypto ban in Nigeria? Last year, Nigeria relaxed its 2 year ban on crypto transactions. The move signalled the President Tinubu-led government’s warm embrace of crypto. Shortly after the ban, crypto exchange platforms like Quidax and Luno applied for operating licenses from the country’s financial market regulator, the Security Exchange Commission (SEC). Since then, the government has clamped down on global crypto exchanges like OKX, Coinbase, and Binance over suspicion that crypto traders use peer-to-peer trading to manipulate the price of the naira via a pump-and-dump strategy. Now, it appears the government is completely cold on crypto. A matter of national security: Nigeria’s National Security Adviser (NSA) has classified crypto trading as a national security issue. As a result, fintechs across the country will now block and report accounts related to crypto transactions to the NSA. The new development suggests a new crypto ban on p2p trading might be in the works! Finding common ground? With the future of crypto on the line, crypto stakeholders across the country are putting on their finest suits to negotiate a peace treaty with the government. The Blockchain Industry Coordinating Committee of Nigeria (BICCON), alongside local and international virtual asset service providers (VASPs), and other relevant crypto lobby groups, will meet with the new director general of the SEC in a bid to straighten out the current status of crypto regulation in the country. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Banking GTCO breaks Nigeria’s profitmaking record Earning season is back! And the results of Nigeria’s top banks are out. Last week, Access Bank maintained its lead as Nigeria’s largest bank by assets, recording assets worth ₦32.6 trillion ($23 billion) in the year’s first quarter. The bank also recorded profits of ₦159.3 billion ($114 million) thanks to a pump in its net interest income. UBA, the Nigerian bank valued at over ₦1 trillion ($710 million), recorded a similar threshold of profits as it took home a ₦156.3 billion ($111 million) pre-tax profit in the period under review. UBA’s pre-tax profit was a 155% year-on-year increase from the ₦61.4 billion ($43 million) it recorded in the same period last year. UBA also recorded a surge in its income from foreign exchange earnings, reaching ₦23.7 billion ($16 million). Record-breaking profit: On more about profits, it was a record-breaking quarter for GTBank, Nigeria’s fifth-biggest bank by assets. The bank recorded pre-tax profits of ₦509.3 billion ($361 million), the largest in Nigeria’s banking history! GTBank’s profit for the first quarter of 2024 was six times the amount it made in the same period last year. The bank’s total assets climbed to ₦13 trillion ($9 billion), up from ₦9.6 trillion ($6 billion) recorded last year. An FX-driven profit? Like GTBank, several Nigerian banks—Zenith Bank also reported profits of ₦320 billion ($227 million)—witnessed increased profits in the period under review. While these gains are indeed mouthwatering, some analysts have attributed them to Nigeria’s currency devaluation. These banks hold a lot of foreign currency for their international transactions. When the Naira weakens, the value of the foreign currency they hold goes up in Naira terms. In some cases, forex earnings reportedly contributed up to 80% of the bank’s profits. Since 2022, the naira has devalued by over 70% leading to inflation across several sectors. The banking sector, however, seems to be reaping a few benefits. Enjoy hassle-free transactions with Fincra Collect payments without stress from your customers via bank transfer, cards, virtual accounts & mobile money. What’s more? You get to save money on fees when you use Fincra. Start now. AI Egypt partners up with Italy for an African AI hub Egypt and Italy are joining forces to create a major artificial intelligence (AI) centre in Cairo. The partnership was announced after a meeting between Egypt’s minister of communications, Amr Talaat and Italy’s minister of enterprises, Aldolfo Urso. The centre will focus on research and innovation in AI and provide training and support to other African nations. According to the duo, the initiative will also position Egypt as a leader in AI development across Africa. The partnership will also position Africa as a leader in AI development and job creation. Why Egypt and Italy? This collaboration leverages the strengths of both countries. Egypt’s location and infrastructure make it a perfect place to host the AI centre. A massive amount of internet traffic travels through Egypt. Nearly 90% of the data cables connecting East and West pass through Egypt and around 17% of the world’s internet traffic passes through the Gulf of Suez near Egypt. In the meeting, Minister Talaat, Egypt’s minister pointed out Egypt’s ideal location as a data bridge between East and West, making it the perfect hub for the AI centre. “Italy and Egypt are both at the heart of the Mediterranean and at the crossroads of three continents: Europe, Africa, and Asia. Italy, with its ports, energy infrastructure, and cable links sees Egypt as a key partner in the development of the entire region,” Urso stated. Urso emphasised Italy’s established leadership in AI and digital technology, and Egypt’s strategic location at the crossroads of Africa, Europe, and
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Use Providus Bank naira cards for dollar payments 2024
For a while, Nigerians have faced difficulty making international/dollar purchases or payments with their naira cards due to the ban placed on these cards by the Central Bank of Nigeria. Nigerians have since had to resort to virtual dollar cards and domiciliary account dollar cards for international transactions. However, Providus Bank naira cards are still licensed to carry out dollar payments up to $3,000 a month. Here’s what you need to know: Overview of opening your Providus Bank account to benefit from their naira cards for dollar payments perk Providus Bank requires a minimum opening balance of ₦100,000 for their savings account and you can apply for a Classic MasterCard immediately. If you’re a frequent international spender looking to open a Providus Bank savings account, consider the ₦250,000 deposit option; This makes you eligible for immediate issuance of the Platinum Naira Mastercard, offering a higher limit for your dollar payments or transactions. As of May 2024, you can easily open your Providus Bank account fully online and even have your preferred ATM card delivered to your chosen location. You can read the full steps here and the requirements too. Choosing your Providus Bank naira cards with international transactions/payments in mind For starters, you can make use of two of Providus Bank’s naira card options: Classic Naira Mastercard: This naira card issuance costs only ₦1000 and it caters to basic international payment needs with a $1,200 monthly transaction limit. It’s perfect if you don’t require high (dollar transactions) spending power. Platinum Naira Mastercard: This naira card allows a $3,000 monthly transaction or payment limit, ideal for frequent international transactions. However, it comes with a ₦5,000 issuance fee and requires a ₦250,000 deposit that will be held for 3 months. Please note that any other deposits after the ₦250,000 on hold will be available for spending through the three months and beyond. You can apply for any card of your choice immediately after you open your account with all requirements met. Simply reach out to Providus Bank customer service channels like 070077684387 for calls, 09153933333 for Whatsapp, via their social media handles, or email – businessconcierge@providusbank.com. Your card will be processed and sent to you within days depending on your location. If there’s a Providus Bank branch close to you, you can also walk in and get an instant card issued to you immediately. Exchange rate considerations While Providus Bank’s exchange rates are based on the prevalent parallel market rates, it’s important to note they may be slightly higher. For instance, on April 29th, 2024, the parallel market rate on platforms like Aboki FX was about ₦1,350 to a dollar. However, Providus Bank quoted a rate of approximately ₦1,457. This means you may be spending more naira per dollar compared to getting the dollar offline or from BDCs. Providus Bank does not publish its daily exchange rates, as such if you must know the exchange rate before carrying out your payment, you can only know it by contacting their customer service on 070077684387, 09153933333 on WhatsApp, their social media handles, or via email – businessconcierge@providusbank.com. Final thoughts Providus Bank naira cards offer convenience for international payments. The Classic Mastercard is immediately accessible once you open your bank account with Providus Bank with the opening deposit. Their Platinum Naira Mastercard offers a higher (dollar transactions) spending limit but requires a higher initial time-bound investment as a new customer. Additionally, it’s important to compare Providus Bank’s exchange rate with the prevailing market rate to ensure you’re getting the best value for your money. By considering your spending habits and comparing exchange rates, you can choose the Providus Bank savings account and naira card combination that best suits your international payment needs.
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Open Providus Bank savings account fully online 2024
You may be one of those looking to open an account with Providus Bank because their naira Mastercard lets you make dollar/international transactions. Whatever the reason you want to open an account with Providus Bank is, here’s what you’ll need to get started and the fun fact is that you can complete the process online and even get an ATM card delivered to your doorstep. Carefully read through to get all the details. What you’ll need to open a savings account with Providus Bank You will need the following alongside your BVN, to open a savings account with Providus Bank: Valid ID: A clear picture of one of the following: National Identification Number (NIN), Voters Card, International Passport, or Driver’s License. (Jpeg format) Proof of Address: A recent utility bill (not more than three months old) will suffice. (jpeg format) Passport Photo: A recent passport-sized photo of yourself. Specimen Signature: Your signature clearly captured on a white background and in jpeg format. Steps to opening your Providus Bank account online 2024 Here are the online steps to open a Providus Savings Account: 1. Go to the Providus Bank Account Opening Page Visit the Providus Bank account opening page @ https://oap.providusbank.com/accountopening/. You’ll see a list of things you need during the process, just as listed above. You will see a box that requires you to enter your BVN. Enter it, and if it’s correct, it should verify you straight to the next stage where you’ll be sent an OTP through your BVN registered email and phone number. Enter the OTP to proceed. 2. Fill in other details Fill in other details, including your Account type Religion Country of residence Preferred phone number Preferred email address Your NIN digits Choose the preferred or nearest banking branch to you Mother’s Maiden Name Your Occupation Your preferred card type Your current address Once you’ve correctly entered all the above information, click “Next”. 3. ID Card Validation To continue the savings account opening processt with Providus Bank, you are required to choose your preferred means of identification between NIN, Voters Card, Driver’s License, and International Passport. After entering all necessary details, click “Next”. 4. Upload documents required This is the final step in opening your account with Providus Bank, and this involves uploading required documents like your Utility bill for proof of address, passport photograph and signature. 5. Review and Submit Once you agree to the terms and conditions, click “Submit” to complete your application. 6. Get Approved and Receive Your Account Number After submission, in a few minutes, you should receive an SMS and email address containing approval congratulations and your account number. In your email, you will also find a customer ID which you can use to register for Providus Bank online and mobile banking services. To apply for a debit card, you’ll need to make a deposit, and a distinct perk of the Providus Bank naira MasterCards is that you can make dollar transactions with it. See all about the cards and how to apply for it and have it delivered to you here. Final thoughts The default transaction limit on a Providus Bank savings account is 5 million naira per day and it may be increased or decreased on your instructions. Please note that you may need to visit a Providus Bank branch to complete the process of opening a Providus Bank account if you have any verification issues such as BVN or other documentation. Other than that, if you encounter any issues or need assistance, you can contact Providus Bank’s customer support.
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