A new study from Juniper Research has found that the value of global consumer credit card rewards will exceed $108 billion by 2026; rising from $92 billion in 2022. This 15% growth will be driven by an increase in the adoption of co-branded credit cards by retailers in order to boost repeat user engagement.
The new research, Digital Loyalty Programmes: Emerging Trends, Regional Analysis & Market Forecasts 2022 2026, predicts that the global value of credit card rewards will increase, as consumers prefer their loyalty record in one place, instead of multiple apps or physical cards. The research recommends that merchants work closely with loyalty platforms to access this omnichannel approach, or risk losing market share to better-connected competitors.
China – Evolving Market in Digital Loyalty Space
The research found that the value of consumer credit card rewards in China will grow by 18% between 2022 & 2026; as consumer awareness of loyalty programmes rises in the digitally savvy Chinese population. Recently, Ascenda and Visa entered into a partnership to roll out a customer loyalty solution for cross-border transactions in China, which the research predicts will fuel user engagement with loyalty programmes and drive growth. Given its digital leadership, the research recommends China as a favourable market to offer coalition-based loyalty programmes via credit cards.
Personal Credit Cards Ahead of Corporate Credit Cards
The report found that the total value of personal credit card rewards will be triple that of corporate credit cards in 2026. While corporate cards are often used for travel purposes, this significantly reduced during the pandemic, with steady growth anticipated as the situation normalises. The research identified personal credit card reward programmes as being high value due to the extremely competitive nature of the market, which has forced reward values upwards. The research recommends that payment providers enter into strategic partnerships with specifically desirable retailers or brands to exploit the full potential of credit card reward schemes, or they will fall behind more appealing alternatives.
Mobile Network Providers Set to Drive Financial Inclusion in Nigeria
The global development of Financial Technology (FinTech) has necessitated mobile network providers to drive financial inclusion in Nigeria.
The incursion of telecommunication companies into the financial services space has been a laudable development for stakeholders in the technology sector. A large number of them believe that these telecommunication companies have what it takes to bank the unbanked across the country.
Investors King gathered that two of the largest mobile networks in Nigeria, during the past week, commenced the operation of their Payment Services.
MTN, in its official statement, revealed that Nigerians will enjoy easy to use, accessible, and affordable financial services through its MoMo wallet.
On the same day, Airtel Africa also announced that it will roll out the full operation of its PSB SmartCash.
Airtel Group Chief Executive Officer, Segun Ogunsanya assured that SmartCash will help further digitise the economy and most importantly, help bank the unbanked by reaching the millions of Nigerians who do not currently have access to financial services by delivering current and savings accounts, payment and remittance services, debit and prepayment cards and more sophisticated services.
“SmartCash Payment Service Bank Limited (‘SmartCash PSB’) Services will initially be available at selected retail touchpoints, and operations will be expanded gradually across the country over the next few months,” Ogunsanya said.
What the CBN wants
The Central Bank of Nigeria has since, within the past years, intensified its commitment to ensuring a satisfactory financial inclusion rate in Nigeria. The apex bank released a supervisory framework for the operation of these payment service banks.
In 2018, CBN introduced a new type of banking license,the Payment Service Banks (PSBs), with the aim of leveraging the strengths of businesses such as mobile network operators while maintaining a bank-led rather than a telecoms-led banking model.
“The Payment Service Banks are expected to leverage on technology to provide services that would be easily accessed by the unbanked population and those who are in hard-to-reach areas of the country,” CBN said.
It is expected that through this development, Nigeria should attain the desirable height in terms of financial inclusion.
Currently, according to the data obtained by Investors King from Enhancing Financial Innovation and Access (EFInA), over four million (4,682,492) Nigerians have been financially included through its funded grant projects, including 2 million women.
Recall that the overall financial inclusion target was 80 percent by 2020, while adult Nigerians with access to payment services was to increase from 21.6 percent in 2010 to 70 per cent in 2020.
However, by the end of 2020, EFInA data shows that only 64 per cent of Nigerian adults were financially included, a report said.
This means that 36 per cent of Nigerian adults, or 38 million adults, remained completely financially excluded as at 2020.
According to the Apex Bank, the key objective of issuing PSB licenses is to boost financial inclusion especially in rural areas and facilitate transactions.
What Financial Inclusion means to Nigerians
Financial inclusion means that people have access to basic financial services like a savings account, credit and insurance. A higher exclusion rate in Nigeria could lead to a poorer population as lack of access to credit and insurance puts them at an economic disadvantage.
Financial inclusion is a strong lever for bridging income inequality, combating poverty and preserving social harmony. The CBN has accordingly been at the forefront of the efforts to drive financial inclusion in Nigeria by championing the development & implementation of Nigeria’s National Financial Inclusion Strategy led by the CBN Governor.
The Deputy Governor and Chair of the Financial Inclusion Technical Committee, had once said that the next phase of financial inclusion in Nigeria is to bank the unbanked women, bridging the inequalities in the sector.
Despite progress achieved to date, critical groups remained excluded, including women, rural dwellers and citizens in the northern area. To address the issue with women, CBN launched a Framework for Advancing Women’s Financial Inclusion in Nigeria in 2020.
The CBN is also leading the industry to implement the framework, which is expected to lead to significant increase in women financial inclusion in Nigeria.
By all indications, there is no certainty of meeting the 2020 financial inclusion targets until around 2030.
However, Nigeria can build on this initial progress and drive faster financial inclusion growth through digital financial services like mobile money, by creating an open and level playing field for a wide range of providers, creating the right environment for fintech to thrive, and encouraging partnerships between different providers.
Mastercard And OPay Announce Partenership Deal
Fintech giants, Mastercard and Opay have announced a partnership deal to foster a global payment ecosystem to boost digital commerce in Middle East Africa and Africa at large.
This comes on the heels of the partnership deal Mastercard signed with Coinbase a couple of months ago to enable payments in the NFT marketplace.
Investors King gathered that the partnership with Mastercard is to simplify users’ experience in the NFT marketplace by allowing millions of people access the Coinbase to mint, purchase, showcase, and discover NFTs. Mastercard has said all the NFT-related transactions would be classified as ‘digital goods’.
This collaboration is the latest step in Mastercard’s emerging market strategy, which involves the technology company collaborating with fast-growing Fintechs like OPay to broaden access to digital transactions, encourage a variety of leisure amenities, develop new financial inclusion trajectories, and endorse the next formation of apps.
Customers are actively asking for a single platform that allows them to do numerous daily tasks more easily, such as sending and receiving money, ordering meals and groceries, scheduling transportation, lending, investing, and putting products for sale.
Customers of OPay will be able to pay on worldwide web platforms using Mastercard’s secure virtual payment system, which is linked to the OPay wallet.
With or without a bank account, OPay customers will benefit from a superior digital experience for a variety of lifestyle services and new digital commerce options.
In addition to enabling digital commerce, the two companies will collaborate to develop solutions that will position OPay at the forefront of financial services in the areas they serve.
Executive Vice President for Market Development, Mastercard EEMEA, Amnah Ajmal, said: “At Mastercard, our innovation strategy is rooted in partnerships to support inclusion at scale. Our partnership with OPay demonstrates our commitment to supporting payments providers across the world to create an interconnected global payments ecosystem that benefits an array of consumers with unique needs.”
CEO of OPay, Yahui Zhou, said: “As the leading fintech in the Middle East and Africa, we are delighted to be partnering with Mastercard as we continue on our journey to promote financial inclusion, helping to open up the global economy to more consumers and businesses across Middle East and Africa.”
Skaleet and Mobiblanc Announce Partnership for a Cutting-edge Technology to Serve Banks Across Africa
Skaleet, an international fintech providing a next-generation Core Banking Platform (CBP), has partnered today with Mobiblanc, an Agile Digital Services Entreprise (ESN), to offer turnkey solutions to financial institutions across Africa. The partnership will ensure that financial institutions have the capacities to launch new digital and innovative financial solutions that they can provide to their customers, whether businesses or individuals.
Mobiblanc, based in Morocco and Tunisia, is a leading player in North and West African markets entirely devoted to digital solutions. With a talented and dynamic team, Mobiblanc delivers an efficient and effective consulting and integration service for a wide range of clients.
Skaleet enables retail banks and financial institutions to launch new banking products and services for their customers at a competitive price. Through its open, modular, and flexible Core banking Platform, Skaleet offers innovative and scalable banking solutions that are built end-to-end and tailored to each customer.
The digital marketplace is continually, and rapidly, developing and evolving and the partnership between Skaleet and Mobiblanc enables financial institutions to ensure clients stay at the forefront with innovative and cutting-edge technology. Providing the best service and advice to clients, Skaleet and Mobiblanc are able to respond quickly to the digital evolution of banking and financial services with innovative and agile solutions that are competitively priced.
Yves Eonnet, chairman and co-founder of Skaleet said, “Today, it is essential for financial institutions to be able to innovate quickly and adapt to change. The ecosystem we have built relies on expert partners who are aware of this challenge and can find solutions. We quickly saw a cultural, technological and business fit between our two organizations and are delighted to have partnered with Mobiblanc. The partnership will enable us to further expand our offering and add value to our customers across Africa.”
Youssef El Alaoui, co-founder of Mobiblanc, added, “This partnership confirms our strategic orientation to support the digital transformation of the financial sector. We share the ambition with Skaleet to offer integration of innovative solutions with cutting-edge, technological expertise in order to bring added value to our partners and respond to the new business requirement of the sector.”
Both Skaleet and Mobiblanc are committed to continue innovating and creating new modules and functionalities to reshape the banking and financial ecosystem in favour of a formal, inclusive and sustainable development of the African continent.
Skaleet and Mobiblanc will participate at Africa Pay & ID Expo 2022 (APIDE), 26-28 May 2022, Marrakech, Morocco.
Government4 weeks ago
Strengthening Women’s Role in Politics is Key to Solving Today’s Crises
Finance3 weeks ago
Dollar to Naira Today Thursday, 5 May 2022
Finance3 weeks ago
Kigali to Host the Commonwealth’s Landmark African Anti-corruption Conference
Naira4 weeks ago
Naira Improves Against Pounds Sterling and Euro on Monday
Banking Sector3 weeks ago
FirstBank Wins Best Bank in Nigeria and Best Bank in Digital Transformation Nigeria 2022
Finance4 weeks ago
Unilever Nigeria Shakes Off Covid-19 Effect, Records N1.796 Billion Profit in Q1 2022
Banking Sector2 weeks ago
FY 2021: Unity Bank Grosses N50.28bn in Earnings and N3.33bn in Profit
Banking Sector3 weeks ago
Fidelity Bank Announces 29% Increase in Gross Earnings in Q1 2022