When AfriGo, the domestic card scheme developed by the Nigeria Inter-Bank Settlement System Plc (NIBSS), was launched on Thursday, January 26, 2023, by the Central Bank of Nigeria (CBN), it joined the growing list of domestic card schemes such as RuPay, UnionPay, Elo, and JCB launched and promoted by national governments.
Following its launch, there was skepticism about its viability given the existing dominance of card schemes in the country. However, many stakeholders and financial inclusion advocates eagerly welcomed the arrival of AfriGo as a means of better serving the unbanked, deepening the adoption of electronic payments, and driving down costs within the payment landscape.
Although much has not been said since its launch, our investigation, as of the last ten months, has revealed that AfriGo, the Proudly Nigerian Domestic Card, is now set for deployment. Working behind the scenes, AfriGo has moved from concept to implementation, with the pilot phase nearing completion. With over 3 million cards already ordered and available, Nigerian banks have placed their individual orders, and customers will soon be able to hold their own proudly Nigerian AfriGo Card in their hands and wallets.
The AfriGo Card scheme was born out of a desire to integrate the informal segment of our economy, reduce reliance on shadow banking, and improve access to formal financial services, thereby further strengthening the stability of the banking industry.
Referencing the comments made during the launch in January, many Nigerians remain financially excluded despite the availability of card payment options over the years. Some challenges limiting the widespread adoption of card payments include the high cost of card services due to the foreign exchange cost components of international card schemes and the failure of existing card schemes to address local peculiarities of the Nigerian market.
AfriGo was, therefore, launched to provide more options for domestic consumers while also promoting the delivery of services in an innovative, cost-effective, and competitive manner.
This statement from the CBN Governor during the launch of the Domestic Card Scheme perfectly captures the thinking behind the introduction of AfriGo: “The CBN and the NIBSS are committed to a robust, efficient, and safe national payments system and welcome innovation from both domestic firms and foreign investors. The Nigerian market is vast, and the current participants have done so much in the last twelve years to transform the ecosystem. Yet there is much ground to be covered, as millions of Nigerians are yet without payment cards to consummate transactions.
“We can no longer neglect the vast majority of Nigerians whose daily payments need micropayments. We need to capture them in national statistics to further understand their transaction dynamics and properly target interventions in that sector of the economy.
“Indeed, the National Domestic Card Scheme bodes opportunities for our economy to integrate the informal segment, reduce reliance on shadow banking, bring more Nigerians into formal financial services with attendant diversification of deposit portfolio, which will further strengthen the stability of the banking industry.”
In addition to deepening financial inclusion, AfriGo will address certain challenges within the local banking system such as the high charges for issuance and maintenance of bank cards. According to the CBN, the launch of AfriGo will not hinder the operation of international card service providers; instead, it will promote the delivery of domestic card services in a manner that is cost-effective, competitive, and denominated in the local currency.
Milestones
With AfriGo, some milestones have been achieved. As of the last count, 24 banks in the country, including FirstBank, United Bank for Africa, Guaranty Trust Bank, Access Bank, and Zenith Bank (FUGAZ), are already live on AfriGo, with AfriGo cards now accepted on more than 16,000 ATMs and 70% of POS Terminals across the country.
In keeping with its desire to offer innovative solutions to local challenges, AfriGo now offers instant settlement across all channels, and merchants can now receive credit on the same day. Three processors are now live on the card scheme, while seven payment solution service providers (PSSPs) are also live on the AfriGo Financial Services Limited (AFSL) web payment gateway, including three banks that accept AfriGo cards.
AfriGo, like other card schemes, provides the infrastructure for users to conduct transactions using their debit, credit, or prepaid cards. For example, if you want to withdraw money from an ATM or PoS agent, that transaction is made possible by technology provided by the card scheme. The AfriGo card scheme complies with global security standards, including EMVCo, and is safe, secure, and convenient.
