Experts harp on interoperability for improved e-payment penetration

Experts harp on interoperability for improved e-payment penetration
Ben Uzor Jr
Electronic payment penetration in Nigeria has continued to deepen on a year-on-year basis by way of the activities of banks, switching companies, vendors of Automated Teller Machine (ATM), Point of Sale (PoS) and third party firms all struggling to extend the market scope. However, to further add value to end users seeking financial services through cost reduction and improved service delivery, there is a need to carve out reciprocal interoperability and unhindered interconnectivity between all stakeholders in the industry. Kyari Bukar, chief executive officer, ValuCard made these observation at the E-PPAN (E-payment Providers Association of Nigeria) Techno Interactive Series with the theme: “Towards Achieving Interoperability and Interconnectivity of Payment Schemes in Nigeria. What option?” held in Lagos recently. He stated that interoperability and interconnectivity is not only desirable but achievable; further explaining that achieving the objective rests on three critical pillars. “There must be a common and appropriate understanding by all industry stakeholders of the concept of interoperability. Also, there must be a common and appropriate understanding of the roles and functions of payment card industry players. Most importantly, the strict adherence to professionalism and the distinct roles and responsibilities of the different players built on the concept of separation of roles”, Bukar posited. In the same vein, Francis Ebuehi, chief executive officer, ChamsSwitch Limited called for the development of harmonised standards and operating procedure through a contractual framework binding all stakeholders, stressing that an agreement on standards and their enforcement for physical and system connectivity, payment processing, settlement would form the framework for interoperability. “Regulatory framework for cooperation between payment switches, issuers and between cards schemes should be expanded to cover all relevant areas and compliance to these enforced. Owners of channels (ATMs, PoS) must also comply with set standards to ensure card interoperability”, he added. Drawing out his road map towards attaining interoperability in the e-payment space, Akeem Lawal, chief technical officer, Interswitch stated that the e-payment landscape as initially envisioned was a seamless processing environment for all stakeholders; card schemes, channels and devices. For interoperability, he noted that all stakeholders must interconnect either to a central switch or to themselves. According to Lawal, the landscape has become complicated as there are presently 27 switches. In his view, the central switch must play an important role in achieving interoperability and should not be seen as competing with existing switches. Commenting on dangers in non-interoperability, Adesola Adeyiga, head, strategy and new business, e-Tranzact explained that this would translate to inadequate value to the banks, end users and industry players. It would also lead to ineffective market penetration as well as stiffen innovation, he further added.