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The Challenges of Online Payment in Nigeria

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Online payment

It is indeed quite disheartening that a country as huge as Nigeria is still largely shut out from the part of international commerce that will allow local online entrepreneurs and start-ups earn foreign exchange through the sale of their goods and services.

Let’s not deceive ourselves; the fact that Nigerians can now shop on amazon or alibaba using their debit cards does not in any way mean that we are participating in the game of e-Commerce internationally. What is happening, in my opinion, is that we are being fleeced by many of the international establishments.

So from Facebook to PayPal to Netflix to Uber; these international organisations are here to do business and nothing but business and with the way these types of transactions are structured, it is almost impossible for our largely analogue nation to get a dime as tax.

Can you imagine how much foreign exchange we are losing as a nation because of certain practices that government has allowed to thrive? Nigerians, for example, can make payment with a PayPal account that is tied to their debit cards and the same Nigerians are not allowed to receive money using PayPal accounts.

Let me give you a simple example; a young local freelancer who provides services online may earn an income but would not be able to receive cash easily because PayPal won’t allow it. In my personal experience, I have between $50 and $250 that I have earned as an affiliate marketer at one point or the other but as I write, these monies are more or less useless to me simply because I can’t use PayPal to receive money. I’ll not bore you with the process of how I try to receive my earnings locally which has also led to the loss of over $500 affiliate earnings.

This is one of the reasons why I am sort of happy about the mess our currency is in at the moment. It might get our government and policy makers to think outside the box and possibly take the possibility of earning foreign currency online more seriously.

It is a welcome development that a company like PayPal has opened up to Nigerians but after two years or so, Nigerians can’t still receive money on PayPal; how sad can that be? Government should as a matter of urgency start a process of lobbying these companies because the moment they allow honest Nigerians to receive money, we would immediately see the difference.

Let me re-echo what has now become a talking drum: “The fastest way to create jobs in our dear country is through Internet based jobs otherwise called digital jobs.”

At this point, it is great to commend growing Nigerian companies like Voguepay for the strides they are making which is geared towards making it possible for people to accept payments for products and services. I decided to mention them because I have used the service for a while and it is pretty easy for anyone to start receiving money through them.

This is quite commendable because after all is said and done, e-Commerce starts with the ability to make and receive payments online. I believe young companies like these need to be encouraged to grow because the more their user base increases the better they can become an effective replacement to the likes of PayPal. What do you think makes PayPal the defacto king of online payment? Basically, good infrastructure and huge user base that ensures billions are pushed across the platform daily.

Nigerians please let’s use the opportunity of our bad economic period to support our own.

However, I must state that there are a number of issues that must be dealt with by the Nigerian e-payment companies which include that fact fraud must be tackled and online security improved. This should go with massive enlightenment campaign that is necessary to build confidence and this is where partnership with the media is key.

Also, infrastructure that aids the growth of online payment has to be improved. Another critical challenge that needs to be tackled is the multiple steps that the customer goes through during payment. Each time I am using any local payment provider, I have to enter my card details every single time but PayPal as an example does not request for it a second time which cuts down the steps one has to go through.

Finally, I believe players in the financial tech ecosystem have to find a way to improve the process of reconciliation. The way things are at the moment, the banks are currently feeding fat in this whole arrangement to the detriment of start-ups. As a start-up, when a client pays you using any debit card in Nigeria; you don’t get it instantly. You must wait for x number of days before the reconciliation is done.

Some closing questions we’d need to ponder on are as follows: is it possible to solve the mystery of not having to re-enter your card details every time you want to make a payment? Can we change the Nigerian narrative that is closely linked with fraud? How can we improve service delivery? What happens if someone pays for a product and discovers it is defective? Will they get a refund? Is it enforceable?

The above questions are pointers to the fact that we need to strengthen institutions in our dear nation because this is what will build the confidence needed to develop Nigeria’s digital economy.

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 experience in the global financial markets.

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Lenovo Sales in Q3 2020 Surge by 8.3%, HP Sales Up by only 0.7%

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lenovo

Lenovo Sold 18.3 million PC to Top Other Brands in Q3 2020

Lenovo was the top PC brand in Q3 with a total of 18.3 million unit shipments. According to the research data analyzed and published by StockApps, compared to Q3 2019 when its unit shipments totaled 16.9 million, there was an increase of 8.3%.

Based on a study by IDC, Lenovo’s stellar performance coincided with an overall increase of 14.6% in global PC shipments. Gartner’s estimate of growth in global shipments is more conservative, at 3.6%, but does not include Chromebook sales.

HP Leads US Market with 30.8% Market Share; Lenovo in Third Spot

Lenovo’s market share increased from 24.5% to 25.7% between Q3 2019 and Q3 2020. On the other hand, HP’s market share contracted from 22.3% to 21.6% in the same duration.

In terms of global shipments, HP took second place with 15.4 million shipments, up from 15.3 million in Q3 2019, a 0.7% increase year-over-year (YoY). Part of the reason for HP’s drop was a 30% YoY decline in desktop shipments. Together, HP and Lenovo accounted for 47.3% of the PC market share.

On the other hand, in the US market, HP was the top brand with 5.1 million unit shipments and a 30.8% market share during Q3 2020. Lenovo came in third, behind Dell, with 2.5 million unit shipments and a 15.3% market share.

Acer showed the highest growth during Q3 2020, with an increase of 29.5% YoY in global shipments. Dell was the poorest performer of the top brands, with a 4.6% decline YoY. According to IDC, total unit shipments during the quarter were 81.3 million, while according to Gartner, the total was 71.4 million. Chromebook shipments, which made the difference between the two reports, grew by 90% YoY.

Lastly, according to a report by Statista, the global PC industry shrunk for seven consecutive years between 2012 and 2018. It went from 365 million unit shipments in 2011 to 259 million in 2018. The seven-year slump came to an end in 2019 when worldwide shipments grew by 0.6% according to Gartner and 2.7% according to IDC.

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Combined Market Cap of Five Largest MedTech Companies Surged by $40bn YoY

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Health Insurance

Five Largest MedTech Companies Gained Combined $40bn Year-on-Year

The coronavirus outbreak put immense pressure on the healthcare industry, forcing pharmaceutical institutions to roll out clinical trials for a COVID-19 vaccine at breakneck speed. However, many other companies also played a huge role in identifying symptoms and keeping the virus under control, which sparked significant innovations in the medical technology market.

According to data presented by AksjeBloggen, the combined market capitalization of Johnson & Johnson, Abbott Laboratories, Medtronic, Siemens AG, and Cardinal Health Inc., as the five biggest MedTech companies globally surged by $40bn year-over-year, reaching $394.3bn in October.

Abbott Laboratories Market Cap Jumped by 31%, the Biggest Increase in 2020

The World Health Organization defines medical technology, or MedTech, as the use of knowledge and technology in devices, medicines, and procedures to advance human health. One aspect of that which has been drawing more and more attention lately is remote healthcare services or telemedicine, as the growing number of people seek medical advice from the safety of their homes.

In September 2019, the combined market capitalization of the five major Medtech companies amounted to $354.2bn, revealed the Yahoo Finance data. By the end of the year, their combined value of shares rose to $398.7bn.

However, the first quarter of 2020 witnessed a significant drop, with the figure plunging to $359.1bn after the stock market crash in March. The following months brought a recovery, with the combined market capitalization of the five companies rising to $385.4bn in June.

The increasing trend continued in the fourth quarter, with the figure increasing by $8.9bn between June and October.

As the leading MedTech company globally, Johnson & Johnson witnessed an almost $40bn increase in the market capitalization year-over-year, growing from $340.3bn in September 2019 to around $380bn last week.

However, statistics indicate that Abbott Laboratories, the second-largest MedTech firm, witnessed the most significant market cap growth in 2020. In December 2019, the combined value of shares of the Chicago-based healthcare company specialized in nutrition, pharmaceuticals, diagnostic treatments, and medical devices amounted to $153bn. After falling to 139.5bn in March, this figure recovered to $161.8bn in June and continued rising.

In August, the company announced the US Food and Drug Administration (FDA) had issued Emergency Use Authorization for its BinaxNOW COVID-19 portable and affordable antigen test that can deliver results within 15 minutes. Since March, the company has got US authorizations for five other coronavirus tests, including the ID Now that can provide results within minutes.

The Yahoo Finance data show Abbott Laboratories market cap jumped to $194.1bn last week, a 31% increase year-over-year.

Siemens AG Market Cap Rose by 20% Year-over-Year

As one of the leading manufacturers and developers of medical devices in the industry, Siemens AG has also witnessed substantial market cap growth in 2020. Their products mostly center around diagnostic equipment and medical imaging systems, the largest contributor of more than €86.8 billion in revenue in the 2019 fiscal year. Statistics show the combined value of the German company’s shares rose by 20% year-over-year, rising from $87.4bn in September 2019 to $104.4bn last week.

The market capitalization of Medtronic plc, the Irish firm that has been at the top of the industry for nearly three decades, rose by 3.5% YoY. In December 2019, the market cap of the medical device company peaked at $151.3bn. After a sharp fall to $120.8bn in March, this figure recovered to $150.4bn last week.

The Yahoo Finance data indicate that Cardinal Health, Inc., an American multinational health care services company providing supplies to more than 75% of the US hospitals, witnessed the smallest increase in the combined value of shares. Statistics show its market cap rose by $350 million after the stock market crash in March, landing at $14.3bn last week, a 3.7% increase year-over-year.

 

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Buy Now, Pay Later Apps Record 8m Installs YTD, Grows by 155% YOY

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Paypal

8.43 Million People Install Buy Now and Pay Later Apps

Data presented by Stock Apps indicates that Buy Now, Pay Later applications have recorded about 8.43 million downloads. The downloads are on a year to date basis.

Coronavirus spurs BNPL apps downloads growth

The highest downloads were recorded as of September 20th at 1.4 million. As of January 20th, the BNPL applications had been downloaded 962,000 times.

The application downloads recorded a significant decline across the year between March and April at 767,000 and 734,000, respectively.

The Stock Apps research also overviewed the application downloads on a year over year basis. As of September 2019, the apps had been downloaded 650,000 times. During a similar period this year, the apps had recorded 1.4 million downloads.

The research explained the soaring popularity of BNPL apps registered this year. According to the research report:

“The Buy Now, Pay Later apps enables customers to purchase goods with payment plans segmented into installments. The apps have been on the rise this year as the coronavirus took a toll on the economy. Most people lost their jobs as different states imposed lockdowns to contain the virus. Due to the pandemic, consumer spending dropped. Essentially, as the economic uncertainty grew, many consumers were more comfortable buying a variety of essential items that had the option to make smaller payments over time without adding to their credit card debt.”

The research also linked the rise to consumers who are shunning credit cards due to high costs.

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