Daniyan: ‘Soft POS’ Will Bridge Contactless Payment Gap, Drives Inclusion in Rural Areas

Victor Daniyan is the Chief Executive Officer of Nearpays. In this interview, he discussed how the latest innovation, Soft POS system, operable via mobile phone is leveraging near field communication (NFC) technology and Unstructured Supplementary Service Data (USSD) to simplify digital and financial transactions and bridging contactless payment gaps in the country. Excerpts:

Can you tell us more about the inspiration behind the development of Nearpays’ soft POS system and how it addresses the challenges with E-commerce merchants and partners?

The main purpose of developing the Soft POS system at Nearpays was to make payment acceptance as easy and convenient as possible, without the need for any extra hardware.

We aimed to simplify digital transactions to the point where just a mobile phone is required, eliminating the need for additional devices. This approach was particularly relevant in Nigeria, where ATM debit cards have been upgraded to contactless ones. However, the potential of these contactless cards wasn’t fully utilized due to the absence of compatible software. Asides, e-commerce merchants and other partners were looking for an easy-to-use solution for accepting payments. So Nearpays addressed this need by developing a straightforward and efficient Soft POS system.

How does Nearpays’ soft POS system stand out in the fintech sector and aid in promoting financial inclusion?

Nearpays is transforming the POS industry by making it possible for any smartphone user to have a POS device, eliminating the need for extra hardware. Our technology is inclusive, working with all types of phones, including basic 2G ones, and operates both online and offline. This is especially beneficial in rural areas of Nigeria and Ghana, where it enables digital transactions, reducing the risks linked to storing cash, like damage from rodents and termites.

Furthermore, Nearpays provides digital receipts, which not only make transactions more transparent but also lessen the environmental impact that comes with paper receipts.

How does the software-based solution turn mobile devices into Point of Sale (POS) devices, and what are the advantages of this technology for people and businesses?

Nearpays’ Soft POS is built on NFC (Near Field Communication) technology, which is also used in ATM cards. If you look at your bank card, you might see a symbol that looks like WiFi; this shows it’s designed for contactless use.

In simple terms, your ATM card doesn’t send out signals by itself; it needs to interact with a device that has active NFC to transfer data and complete transactions. What Nearpays has done is create a way to turn regular mobile devices into these active NFC devices.

We’ve developed this technology from the ground up, aiming to offer the best solution of this kind in the market. This means individuals and businesses can now use their mobile devices as POS terminals, making transactions more accessible and convenient.

Nearpays recently launched an offline soft Point of Sale (POS) system for areas without internet. Can you explain how this technology works and the effects it’s having in less served areas?

The new offline POS system by Nearpays is powered by USSD technology, which uses unique dedicated codes to facilitate transactions. This system allows people, especially in rural areas, to make digital transactions easily using a specific code. Our focus at Nearpays is to ensure that digital transactions are smooth and accessible, no matter where you are or what device you use.

This rural POS technology has made a significant impact by reducing the reliance on cash in these areas. This change is crucial because it lessens the risks associated with cash handling, like theft or damage from environmental factors. Getting started with this service is straightforward – just dial *347465# to begin.

Could you explain the journey of developing Nearpays’ soft POS system, particularly focusing on how you achieved its efficient payment receipt function?

The creation of Nearpays was driven by our goal to simplify the process of accepting payments. We aimed to eliminate the need for extra devices, prioritizing convenience. At the same time, we were keen on ensuring the security of contactless payments.

In traditional ATM-POS setups, there’s a higher risk of hacking due to the way these systems communicate. We tackled this by adopting contactless payment technology, where the ATM card quickly connects with the NFC-enabled POS device, usually in under five seconds. This approach not only enhances security but also speeds up transactions.

Another significant aspect of our system is the introduction of digital receipts. This feature not only increases transparency and accountability for businesses and consumers but also addresses the environmental concerns of using paper receipts. By shifting to digital, we help in reducing paper waste, contributing to a more sustainable environment.

How does Nearpays’ approach of not requiring physical terminals, especially for small transactions, benefit users?

Nearpays simplifies financial transactions by using your mobile phone instead of a separate physical terminal. This method is particularly advantageous for small businesses and individual sellers, who might find owning a physical terminal both expensive and cumbersome.

For instance, consider ride-hailing drivers or social commerce sellers. For them, acquiring and maintaining a physical terminal for transactions can be a significant burden. Moreover, in everyday scenarios like buying small items – say, groundnuts from a street vendor for less than 500 Naira – it’s impractical to expect the vendor to have a Point of Sale (POS) device.

This is where we step in, offering an offline POS solution. It allows these small-scale transactions to be conducted easily, without the need for traditional physical terminals, making the process more convenient and accessible for everyone involved.

How does Nearpays’ Rural Virtual POS system facilitate payments in areas with limited or no internet connectivity?

Nearpays has developed a Rural Virtual POS system that is designed to work even in regions with minimal connectivity. This system operates primarily through USSD (Unstructured Supplementary Service Data) transactions, making it compatible with basic 2G mobile devices.

To use this system, one simply needs to dial *347465# on their mobile phone. This initiates the transaction process, enabling users in rural areas to access financial services without the need for an internet connection.

Could you outline the main steps for setting up and using Nearpays’ soft POS system? Also, how easy is it for both individuals and businesses to use this system?

Accessing and using Nearpays’ Soft POS system is straightforward. To get started, individuals and businesses need to follow a few simple steps:

Download the App:

First, go to your mobile application store. For iPhone users, this would be the App Store, and for Android users, the Google Play Store.

Complete Registration and KYC:

 Once you’ve downloaded the Nearpays app, the next step is to complete the registration process. This includes filling in some basic information and going through the Know Your Customer (KYC) process. This is a standard procedure to verify your identity.

Start Using Soft POS:

After registration and KYC are complete, your Soft POS is ready to use.

The user experience is tailored for both Android and iOS users. Android users have the benefit of both scanning and tapping features for transactions. On the other hand, iOS users can conveniently use the scan card feature. This flexibility makes the process user-friendly and adaptable to different needs and preferences of individuals and businesses.

Nearpays is known for its focus on digitization, particularly in reducing paper receipts to lessen the carbon footprint. Can you tell us how this environmentally friendly approach fits with the company’s overall mission?

At Nearpays, our primary aim is to expand financial inclusion by leveraging technology. We believe, however, that this objective cannot be achieved in an environment that’s suffering. That’s why we’re committed to sustainability, which is evident in our initiative to digitalize receipts. By doing so, we’re actively reducing our carbon footprint. This approach not only aligns with our mission to use technology for financial inclusion but also demonstrates our responsibility towards maintaining a healthy ecosystem.

Can you give us some specific examples of how Nearpays, in partnership with other financial institutions, has helped Nigerians who don’t have bank accounts?

Nearpays, in partnership with Providus Bank, made a notable impact by bringing banking services to about three thousand individuals who previously had no access to banking. These people, for the first time, received their own bank account numbers. This achievement is just the start for Nearpays.

We’re planning to expand our reach into even more remote rural areas, aiming to provide many more people with their first-ever bank account number.

How has Nearpays improved payment processing for those involved in social commerce, like stay-at-home moms?

Nearpays has truly transformed the payment experience for individuals in social commerce, especially stay-at-home moms. It’s allowed them to easily accept card payments using only their smartphones, which was once thought to be unachievable.

With Nearpays, what seemed impossible is now effortlessly possible, making transactions smoother and more accessible for these sellers.

Nearpays has developed partnerships with a range of institutions. Could you shed light on these collaborations and explain how they are important for Nearpays’ objectives?

Nearpays is focused on taking our product worldwide, and we understand how valuable our services can be on a global scale. We’ve partnered with more than ten commercial banks and several other organizations. These partnerships are crucial as they help us bring our solutions directly to small and medium-sized enterprises (SMEs).

 Our main goal is ambitious but clear, we plan to integrate over 10 million SMEs into the Nearpays system by the end of 2024. This step is significant for our expansion in countries like Nigeria and Ghana.