Mastercard Incorporated (NYSE:MA) has introduced a suite of contactless payment solutions aimed at transforming the payment landscape in Nigeria. The solutions include tap-on phone services, QR codes, and Payment Links that can be used on smartphones by businesses of any size, enabling seamless card payments. Backed by Mastercard’s reliable payment acceptance technology, these contactless options enhance the safety of payments.
The solutions incorporate Near Field Communication (NFC) technology, allowing smart devices to function as payment acceptance devices. This facilitates smooth connections with customers’ contactless payment cards, leading to faster payment processing. The time saved on payments can be redirected towards other business opportunities.
Mastercard’s payment solutions also aim to reduce the cost of payment acceptance devices, eliminating the need for merchants in Nigeria to invest heavily in separate hardware Point-of-Sale devices. This cost-effective approach is expected to benefit around 40 million small businesses in the country, enabling them to embrace digitalization in their daily operations.
In addition to the advantages for merchants, these solutions offer benefits to consumers, including an accelerated checkout experience and reduced waiting times. Customers can simply place their cards on the merchant’s device for seamless payments, overcoming challenges associated with cash payments, card swiping, and PIN entry.
This move aligns with Mastercard’s broader efforts to expand its digital payment solutions across Nigeria, reflecting the company’s commitment to bringing 50 million micro and small merchants into the digital economy by 2025. By increasing the utilization of its solutions, Mastercard aims to secure a significant share of the global digital payments market.
Mastercard’s focus on digitization extends beyond Nigeria. Before this announcement, the company collaborated with PT MRT Jakarta, the operator of Jakarta’s transit system in Indonesia, to enhance the transit experience for commuters. This initiative allows commuters to use Mastercard-branded debit cards for cashless top-ups of MRT cards and credit cards for purchasing MRT tickets via the MyMRTJ app.
Over the past year, Mastercard’s shares have gained 23.1%, outperforming the industry’s 21.1% increase.
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