Poor Network Service, Failed Transactions Threaten Mobile Money

point of sales
  • Poor Network Service, Failed Transactions Threaten Mobile Money

Poor network service and rising number of failed transactions with debits are hurting mobile money agents as operators complain of severe reputation damage and losses.

Operators lamented that poor network service usually triggered failed transaction on the Point of Sales terminal but banks’ failure to reversed failed transactions on time or within 24 hours stipulated by the Central Bank of Nigeria is hurting their sales and in some cases lead to serious confrontations.

One of the operators, who offer services such as cash-in, cash-out, bill payments and airtime vending, said some financial institutions have not automated reversal of failed transactions. Leading to disagreements between customers and operators.

Mr Oluwasegun Abbey, a mobile money operator with agents in Kwara and Saki in Oyo State, said some banks have not changed despite CBN directive to ensure failed transactions with debits were reversed within 24 hours.

“Most of the challenges persist till now. The banks still debit people without reversal even after 24 hours. Some persist till three weeks before it is reversed,” he added.

He said, “Some banks do auto-reversal but some even after complaints will give you seven days, some 14 days and other 21 days.”

Mr Victor Olojo, the President, Association of Mobile Money Agents in Nigeria, explained that while failed network service usually triggered failed transactions, technology glitches contributed the most to failed transactions.

Olojo also stated that failed transactions are generally high during peak transaction periods and festive season.

Ms Ronke Kuye, the Chief Executive Officer, Shared Agent Network Expansion Facility, explained that SANEF has partnered banks to help address issues faced by super agents as soon as possible.

“What we do at SANEF is that we work with the banks to make sure they resolve any customer complaints from the agents,” Kuye added.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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