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Customers Kick As Opay Increases Transaction Charges

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  • Customers Kick As Opay Increases Transaction Charges

Opay has increased its bank transfer charges from N10 to N45 and also introduced a 1% fee on subsequent transfers.

This means when users make transactions from their Opay wallets to regular bank accounts; the first transaction will attract N45, while the second transaction on the same day attracts 1%; for example, N50,000 will attract N500 (1%).

Opay had earlier raised its charges to 2% but reversed the rate, the same week, due to the criticism it received from its users, as they were not notified before the changes were made. Customers only found out when they tried to make transactions.

“We sincerely apologize for the inconvenience we caused you by our lack of notice on the 2% bank transfer fee. We understand that this was not communicated appropriately and sincerely apologize for this.

“We have now reviewed our bank transfer fees, and from 6 AM tomorrow, the fee for our bank transfers will be N45 for the first transaction of the day and 1% for subsequent ones,” Opay tweeted.

The Effect Of N45, 1% Charges

Transaction from one bank to another bank attracts N52.5, the reason why many people turned to Opay since it was charging N10 for its transactions.

However, with the new rate of N45 charges (an increase of N35) on bank transfer and the 1% fee on subsequent transfer, it appears Opay might soon lose some of its customers who are not happy as they will not be getting the benefit that attracted them.

The new policy may also affect other services on the app apart from the bank transfer, especially OWealth.

Owealth is an investment product on Opay that offers 10% interest annually on the amount the user invests. As a result of the new transaction charges, the users may lose part of their return when they try to transfer the money out of the app when it is mature.

Meanwhile, Opay has received an international money transfer license from the Central Bank of Nigeria (CBN), that will allow users to receive money directly into their OPay wallet from any bank.

Customers Reaction

After Opay took to its Twitter page to announce its decision to charge N45 and 1% on subsequent transactions, many of its users also shared their opinions.

A user on Twitter, Toluwase Omo Ogundele said, “So if I transfer 100k, you guys will charge me 1k? 200k=2k? Nobody will patronise you guys. Transfers on bank app to another bank is N52.5 and you expect somebody to come and use a service that charges exorbitantly? he queried.

Another user, Dauda Hammed Lekan who seems to be a victim of the 2% that was earlier deducted said: “Refund the overcharged customers first and let’s start after people must have heard the info. You don’t give apology on what you have done intentionally. It makes no sense to me. I have plans for my fund, you don’t just charge me without notice just like that.@SRunsewe please act.”

“I lost over #1200 transferring 62k to my account. They have lost my trust unless they agree to refund my money,” African Child said.

Onye Oraifite who is disappointed that Opay wasn’t transparent enough, said, “When I thought this platform will save me from the useless bank charges, obviously I’m wrong.”

These are just few among various reactions that trailed Opay’s move.

Why Opay Increased Its Transaction Charges

According to OPay’s Country Manager, Iniabasi Akpan, the company is hoping the move will lead to more financial activities within the Opay ecosystem.

“Peer-to-peer transactions do not attract any fees within the OPay app,” he told TechCabal.

“Evidently, with the new policy, users are encouraged to do more transfers and payments within the app,” he added.

Akpan also said that the “OWealth users should not be affected” by the new charges as it is developing its technology to “accommodate this change.”

He assured that the company is working on a “plan to resolve any issue affecting OWealth users.”

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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple iPhone 14

Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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