Posted by by Linda Elueme on
Visa International, the world's leading payment system yesterday said it plans to provide a National Net Settlement Service for Nigerian banks.
Visa International, the world's leading payment system yesterday said it plans to provide a National Net Settlement Service for Nigerian banks. The service scheme will help to reduce banks' cost and increase flexibility.
Visa's representative for Nigeria, Mr. Gavin Young who made this known in Lagos further said that the scheme will allow all transactions made between Nigerian Banks and Visa to be settled in Nigerian currency.
Young, while giving insight on Visa's operations said Visa is set to provide payment solutions for members banks that will enable them issue cards and process merchants' Visa card transactions.
He explained that electronic payments system are far more efficient and can deliver significant cost savings to banks, merchants, employers and government than cash.
According to Young, "the Central Bank estimates that it cost N7 to produce a N5 note. That note needs to be transported, secured and counted every time it is used.
He said Visa's is in partnership with the owners and management of ValuCard to upgrade ValuCard's systems in order to allow Visa cards to be issued and processed in Nigeria.
He noted that both systems which have been installed is currently being tested and will start operation soon.
"The partnership between ValuCard Nigeria Plc and Visa International will have significant benefits for Nigeria's economy, its governement and for the people as a whole.
"Business will see direct and indirect benefits from a range of financial innovations and solutions that we can bring to the market. Consumers will be able to keep funds in the bank and have access to them 24 hours a day, seven days a week through a network of acceptable locations," he said.
Currently, he said 14 banks including ValuCard Nigeria Plc are members of the Visa International Services Association. The banks are AccesBank Plc, Afribank Plc, AllStates Trust Banj,, Diamond Bank, Ecobank Nigeria Plc, First Bank of Nigeria Plc, and Guaranty Trust Bank.
Others include Oceanic Bank International Plc, Prudent Bank Plc and Standard Chartered Bank of Nigeria Plc.United Bank for Africa Plc, Union Bank of Nigeria Plc and Wema Bank Plc.
Visa International is a service association owned by, and comprised of 21,000 member banks. These banks have issued over one billion Visa cards worldwide on which $3 trillion is spent annually, across over 150 countries.
Visa accounts for 57 percent of all worlwide payment card purchases.