PPC, Others Advise Banks to Strengthen e-Payment Platforms as Failed Electronic Transactions Persist

Emma Okonji

Technology experts and consumer rights advocates have continued to blame commercial banks for the persistent failure in electronic transactions across banks, a situation they claimed is creating frustration and pains among bank customers.

This is just as PPC, a leading ICT and infrastructure development company, together with the National Association of Telecom Subscribers (NATCOMS), an advocacy group, have joined others in blaming the banks for all failed and unsuccessful financial transactions at a time when Nigerians need to rely more on online financial transactions, as a result of limited cash in circulation.

They have therefore called on banks to strengthen their mobile apps and e-payment platforms in order to reduce the growing number of failed electronic financial transactions, insisting that the challenge is coming from the banks and not from telecom operators who provide the infrastructure on which banking transactions ride on.

PPC, in a statement, said: “With more Nigerians using electronic payment channels as a result of the acute shortages in cash circulation in the economy, PPC Limited, has advised financial institutions to strengthen their e-payment platforms.”

While stressing on the impact of the redesigned naira notes on banking infrastructure, the Director of Operations and ​Head of the ICT Division at PPC, Dr. Patrick Ede, observed that the inadequacy of the e-payment channels to withstand the deluge of transactions​ orchestrated by the surge in the use of such channels for payment, is causing many failed and unsuccessful​transactions.

He added that the congestion and resultant system downtime are negatively affecting the commercial activities of merchants as transactions have become slow, delayed and sometimes incomplete,​ due to the fact that the banks were never ready for the level of surge they are currently experiencing.​

Ede therefore called on banks to implement measures that would ensure all electronic payment channels could process simultaneously, quickly and efficiently.
According to Ede, “The rising demand on the digital channels of banks calls for increased investment in reliable payment systems that speedily deliver on transactions.

 “To alleviate the congestion on payment channels, banks should carry out an audit of payment channels to identify gaps and loopholes in the system with a view to phased resolution. This first step will ensure that banks raise the standards of experiences they provide to customers and ensure that customers remain at the centre of their business models.”

He urged banks to consider upgrading their ​server, network and hardware infrastructure to handle peak-time​ operations, adding that the move will ensure that all electronic payment channels can process transactions swiftly and efficiently.

Ede further advised the financial institutions to enhance their security protocols to ensure that all electronic payment channels are secure, protect customer data and prevent fraud.

According to him, there may also be a need for financial institutions to expand their existing payment channels at in order to accommodate more transactions.
He said PPC’s expertise in the deployment of high-end ICT and engineering infrastructure has assisted several organisations in the public and private sectors to create secure, robust and scalable systems suitable for a broad range of commercial uses.

On his part, President of NATCOMS, Deolu Ogunbanjo, who narrated the ordeal of some telecom subscribers over failed financial transactions, said NATCOMS had in early February, filed a case at the Federal High Court, against the imposition and implementation of Value Added Tax (VAT) on telecommunication services and the imposition and implementation of Excise Duty charge on telecom services because of the untold hardship they are creating for telecom subscribers.

He further said NATCOMS was still studying the situation of limited cash and the continuous failed transactions, which he said were frustrating telecom subscribers, adding that NATCOMS may go to court to file a case against the Central Bank of Nigeria (CBN) and all commercial banks, over failed financial transactions, if it persists.

According to Ogunbanjo, “Some Nigerians are still having old naira notes even after the February 10 and 17 deadlines for no fault of theirs. On the 11th of February, some telecom subscribers decided to carry out online transactions for payment of goods and services, after they had deposited their old naira notes, but were frustrated because they could not successfully carry out online transactions with their mobile phones, a situation that forced them to patronize Point of Sales (PoS) agents, who deliberately gave them old cash because they had no new naira notes to dispense. Unfortunately for them, few traders accepted the old naira notes on that day, and majority refused collecting it, and today they still have some old naira notes with them.”

He advised banks to increase the capacity of their mobile apps to enable bank customers transact freely without hitches of any kind.
Last week, THISDAY reported how the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Information Technology Systems and Security Professionals (ITSSP), an interest group of the Nigeria Computer Society (NCS), also blamed the banks for failed electronic transactions.