Network One: Deepening Nigeria’s Payment System

Oluchi Chibuzor writes on the entrance of Network One, a payment processing platform into the Nigerian payment system

Nigeria is at a pivotal moment in its financial journey. The country is undergoing a rapid transformation, driven by technological advancements and a growing appetite for digital solutions. This shift is particularly evident in the payment system, where innovation is reshaping the way Nigerians transact business and manage their finances.

Fintech, the intersection of finance and technology, has emerged as a key catalyst for this transformation. Nigerian fintech startups are developing innovative solutions that address the unique challenges of the Nigerian market. From mobile payment platforms to digital lending, these startups are expanding financial access to millions of previously underserved Nigerians.

As the fourth-largest Gross Domestic Product (GDP) in Africa with strong consumer spending, Nigeria is ripe for a digital payments boom. Total transaction value in the domestic digital payments market is projected to reach $21.32 billion in 2024, with an annual growth rate (CAGR 2024-2028) of 10.06% projected to reach a total amount of US$31.28bn by 2028.

Therefore, as part of efforts to deepen the country’s payment system and expand its financial inclusion drive, FTSE-listed Network International, a trusted payment partner of Nigerian banks, recently underscored its commitment to local and regional markets by bringing its innovative digital payment platform, Network One, to Nigeria. The platform is now ready to onboard and empower banks, mobile network operators (MNOs) and fintechs in Nigeria and throughout the West African region.

Network International has been serving Nigeria – the company’s largest hub in Africa – for over 20 years, supporting the country’s digital transformation in collaboration with various partners and regulators.  It currently works with 21 banks and fintechs. Over the past two years, Network International has been expanding its offerings in Nigeria to establish the country as a major payment processing hub for West Africa and French-speaking Africa.

It has expanded its local office, upgraded its data center capabilities and attracted payment skills and expertise to achieve a balance of ‘platform and people.’ Network’s on-ground talents are all Nigerians. The on-soil deployment of Network One, a sophisticated and modular payment processing platform, is a testament to Network International’s investment commitment to the Nigerian market.

By deploying its flagship Network One platform on soil, Network International aligns with the Central Bank of Nigeria’s (CBN) directive for in-country transaction routing, enhancing its local processing capabilities.

The integrated platform provides banks, financial institutions, and fintechs with a comprehensive range of payment products and services locally in Nigeria for both issuers and acquirers.

The suite is complemented by a variety of value-added services such as digital, loyalty, tokenization, enterprise fraud prevention, embedded finance and data and advisory solutions and many more. Network International is strategically investing in rolling out the platform in key markets to effectively serve its local and regional clients and partners across the MEA region.

Network One is a unified, integrated, and modular payment processing platform offering a set of payment products and solutions that enable issuers and acquirers to deliver exceptional digital payment experiences to their end customers.  This new platform is highly parametrised and configurable, allowing faster go-to-market and enhanced operational and cost efficiencies. It is a robust and best-in-class platform that offers rich digital-first capabilities for card and merchant hosting, payment transaction processing and management, digital channel management, and many more. It also comes with a set of empowering value-added services and solutions that provide a competitive advantage for our existing and future clients. The platform offers advanced loyalty, fraud prevention, embedded finance, data analytics and advisory services, and many more.

Also, Network One is fully compliant with the highest security and quality standards and operates in line with local and regional regulatory requirements.

The Network One platform offers both merchant and issuer solutions, hosted and supported in-country. It relies on consolidation of best-in-class technologies brought together to provide end-to-end payment processing capabilities in a highly adaptable environment.

Indeed, Network International is strategically positioning its proprietary technology infrastructure, which is developed, hosted, and maintained on a local level, to cater to the needs of local and regional entities seeking market-relevant digital payment solutions for their consumers.

Commenting on the company’s entrance into the Nigerian market, Group CEO, Network International, Nandan Mer said: “This major milestone took us only a few months to deploy thanks to a local team that worked tirelessly and seamlessly with cross-functional colleagues in various geographies to ensure we deliver on Network One’s promise of innovation, resilience, and agility. Taking Network One live in Nigeria is integral to our company’s continued commitment to the country and the continent.”

He added: “Growing digital payments penetration, high GDP combined with a young tech-savvy population and a high number of fintechs indicate that Nigeria is ready to leap into the next phase of its digital payment evolution, with significant upside for digital payment via cards and mobile wallets.

“Having our solutions present on-soil in Nigeria opens tremendous growth opportunities for Network and our clients alike. Enabling such a large market and contributing to the ease of doing business for institutions and individuals fulfils our purpose of helping businesses and economies prosper, and also helps drive Nigeria’s vision for financial inclusion and digital transformation.”

Additionally, Network International’s investments throughout Africa have led to substantial improvements in economies of scale. Consequently, the company can provide state-of-the-art technology at a lower cost than what companies might incur if developed internally. This affordability, coupled with the technology’s advanced features, appeals to a broad audience and furthers the company’s mission to expedite digital transformation across the continent.

“Network One’s successful touchdown in Nigeria embodies our ambition to establish ourselves as a company that is authentically local in the African markets we serve,” Mer said further.

Also, the Group, MD, Processing, Africa and Co-Head Group Processing, Network International, Dr. Reda Helal, pointed out that: “Our presence on the ground and comprehension of the specific needs of the local market have enabled us to tailor a solution that is ideally suited for Nigerian enterprises.

“Our capability to establish a hub equipped with all the essential technology not only empowers our clients to enhance their value proposition but also positions Network to effectively contribute to financial inclusion and democratisation of payments, addressing the needs of a large population of consumers across the continent.”

A crucial aspect of Network International’s sustained investment in Nigeria is nurturing an empowered local workforce. By growing local personnel, Network is positioned to collaborate and co-innovate with local banks and mobile network operators, providing proximity to small and medium-sized enterprises and payment experts, right in the heart of their operations.

As a show of its commitment to the transformation of the local entity, the company is firming up its staff complement, and will continue to enhance its resources and talents. Network recently marked its move from level 4 BBBEE status (in July 2023) to level 1 a year later as it continues to gain trust among African institutions as a payments partner of choice.

“By recruiting the right talent, we are assured that our teams in Nigeria can achieve quicker results with reduced reliance on our international teams, leading to significant operational benefits for our clients locally and regionally,” Helal added.

He stressed that Network One on the ground means more proximity to Network International’s global expertise implemented by experts with local knowledge, better customer experiences, and compliance with data localisation rules that ensure consumer credentials and data are well-protected.

“Network embeds itself into Nigeria’s payments fabric through the deployment of an award-winning, best-in-class payments processing platform. Aside from enhancing service to Nigeria, the platform setup supports Western Africa and Francophone territories which will establish Nigeria as an even stronger payment hub for Network.

“We have bulked up our local workforce and intend to grow further. We are fully conscious of the richness of the Nigerian market when it comes to resources and payment skill sets – indeed, Nigeria was one of the first West African countries to venture into digitization and has produced a considerable pool of seasoned payment experts that companies like us would be proud to bring in.

“We have a solid all-local team already actively serving our clients in Western Africa, and we have plans to expand as the demand for our services grows. Network is an equal opportunity employer with a track record of cultural and skill diversity across the MEA region.”