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10 Fintech Trends Disrupting The Financial Industry

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10 Fintech Trends Disrupting The Financial Industry 

 

Global funding for the fintech business has increased by 96% in the last year. This comes to terms as new technological advancements emerge in the financial industry, thereby promoting the worth of some fintech companies to become “decacorns” (companies valued at more than $10 million).

Financial service users are progressively migrating to the digital arena, choosing online services over traditional ones. Therefore, this motivates financial institutions to make swift judgments, incorporate cutting-edge technology, and improve client service.

As one of the most disruptive businesses, fintech has substantially changed how people deal with financial institutions over the past decade and hasn’t stopped there. Every year, new improvements are introduced to suit the ever-increasing client expectations. That is why, to remain relevant and competitive, business owners and executives must grasp where we are now and where we are heading with financial technology. 

So in this article, let’s discuss the top fintech trends that drive the financial market.

 

Top Fintech Trends Disrupting The Financial Industry

1. Contactless Technology

 

In the fintech industry, contactless technologies are unquestionably growing. Contactless payments meet the rising consumer desire for quicker, more practical methods of purchasing products and services. Additionally, it’s now simpler than ever for customers to make contactless payments because of the widespread use of mobile devices with NFC (near-field communication) technology.

 

The three most prominent names in contactless payments in the US are Apple Pay, Google Pay, and Samsung Pay. In addition, a PwC estimate projects that by 2022–2033, there will be $1.08 trillion in global mobile payment transactions, up from $396 billion in 2017.

 

The popularity of contactless payments is rising due to a variety of reasons. The continued use of EMV chip cards is one. Because these cards are safer than traditional magnetic stripe cards, many merchants now require consumers to use them. In Europe, where EMV chip cards have been widely used for many years, this is particularly true.

 

The acceptance of NFC-enabled mobile devices as a payment method is another factor boosting the use of contactless payments. In reality, many stores already feature NFC terminals that let customers use their smartphones or smartwatches to make contactless purchases. And as more and more customers become accustomed to making payments via their mobile devices, we anticipate seeing much more growth in this field.

 

2. Digital-Only Banks or neobanks

 

The increased competition among banks nowadays forces them to seek new chances to stay afloat. Neobank, the latest fintech trend, is a result of the round for each client, the need to cut maintenance costs and available technology options. A neobank is an internet bank without physical locations or branches. Smartphones, tablets, and personal computers are used for electronic communication and customer service. Neobanks typically obtain banking licenses or join an existing traditional bank as a junior partner.

 

Currently, there are about 70 neobanks in the world, 40 of which are in the UK. In addition, Sweden will discontinue using cash by 2023, and the other nations are expected to follow suit. As a result, many brand-new banks nowadays opt for a digital-only strategy. Research from eMarketer predicts that between 2020 and 2024, the number of users of neobanks will double.

 

3. Open Banking

 

Open banking is a program that enables banks to share customer information with fintech firms and other financial institutions. Programming interfaces (APIs) that let the website or app access the bank’s database can be used for data exchange.

 

One might ask why conventional banks would divulge their information to other organisations. Open banking, paradoxically, keeps banks competitive. The end-user will benefit from improved service and a more comprehensive range of opportunities, thanks to banks.

 

You can develop open banking applications that compile all financial data from various banks in one location. Users can deposit their paycheck on one bank’s card, save money on another, and make purchases using the bank’s card with the highest cashback benefit. Financial institutions can use open banking to construct account aggregators. Through a handy app, customers may access all of their accounts.

 

4. Big Data

 

Vast collections of structured and unstructured data are called “big data” in the finance industry. Banks and other financial firms can utilise them to forecast consumer behaviour and create plans. The financial industry receives analyses and produces enormous volumes of data every second. Structured data is information kept in-house by a business to provide vital information for decisions to be made at the appropriate moment. An ever-increasing volume of unstructured data is gathered from diverse sources, offering great analytical possibilities.

 

Modern financial technologies enable Big Data to forecast client behaviour and produce detailed risk evaluations, setting them apart from conventional financial organisations.

 

5. Advanced Cybersecurity

 

Cybersecurity in fintech never loses significance and emerges as one of the primary market trends. Financial information is delicate and more susceptible to online dangers. A data leak can be expensive for financial companies.

 

Every year, more sophisticated security measures will emerge due to the fintech sector’s growing vulnerabilities and risk of cyberattacks. According to Grand View Research, the biometrics market will grow to over $25 billion in the coming years.

 

Even though fingerprinting is currently one of the most used technologies, consumers are searching for new contactless methods to protect their data and establish their identity. Systems for identifying the voice, retina, ears, vein pattern on the hands, and even DNA will advance in 2022. It is anticipated that the number of industry-specific biometric solutions will increase.

 

6. Blockchain Technology

 

Blockchain is a finance technological innovation still emerging but has excellent future potential. In a recent global blockchain study conducted by Deloitte, 76% of respondents said digital assets might displace fiat money within the next 5 to 10 years. Companies can use blockchain technology to protect data, carry out identification and verification processes, record transactions, sign contracts, and improve traceability. The security and dependability of this technology make it advantageous for financial services.

 

Blockchain should, in theory, be the key technology for developing such a system. Transparency, anonymity, and transaction security are provided for all parties by the immutable data recorded by Blockchain.

 

We have all witnessed the value of Ethereum and Bitcoin soar throughout 2021, with assets held in cryptocurrencies and decentralised finance totalling at least $40 billion. It already has an impact on macroeconomics and is a worldwide trend.

 

7. Buy Now Pay Later (BNPL)

 

One of the fintech trends with the quickest rate of growth is BNPL services. Customers can postpone paying for items or services they’ve bought in-person or online, thanks to BNPL. According to the analysis, the global market for BNPL will increase from $24 billion in 2020 to $67 billion in 2025.

 

The rise in popularity of BNPL can be attributed to various factors. It provides users with a practical approach to managing their finances. Second, it can assist firms in increasing sales and fostering client loyalty. Third, BNPL enterprises can provide interest rates and payment periods that are competitive.

 

8. Fintech Super Apps

 

An app that offers a broad range of services and is widely used is referred to as a super app. It is, in other words, a comprehensive solution that satisfies the requirements of its users. Super applications are becoming more and more common, particularly in the financial industry. Super applications are in a prime position to disrupt the fintech sector, which is ripe for it.

 

Super apps are becoming increasingly common in the financial sector for several reasons. They offer a one-stop shop for all of your fintech needs to start. Users who wish to access all their financial services in one location will find this convenient.

 

Also, many great apps work with a variety of partners. Users now have access to a wide range of services and goods they otherwise might not be able to find in one location.

 

Super apps are frequently developed with a mobile-first mentality. They are therefore created for usage with smartphones and other mobile devices. This is crucial since more and more individuals use their cell phones as their primary means of internet access and financial transaction.

 

9. Regtech

 

Government agencies and the financial markets present the demands for banking companies. These regulations are so numerous that businesses frequently struggle to follow them. As a result, companies spend a lot of money on lawyers to handle this procedure or risk paying fines if they don’t comply with fintech legislation. 

 

It is hard to adhere to every legislation, especially when these regulations keep expanding. Because of this, demand for regtech is rising right now. It enables financial institutions to monitor the accuracy and legitimacy of their operations automatically.

 

Client identification, data processing and protection, and risk analysis are all responsibilities of the regtech industry. This makes it easier to follow the law and stay out of trouble.

 

Regtech enables processing massive amounts of regulatory requirements every second about each line of business thanks to automation, Big Data, and Machine Learning. These automated systems are set up to search for trends in past data continuously. As a result, using regulatory technologies to identify problematic cases or detect fraud becomes simpler.

 

10. Embedded Finance

 

Embedded finance connects payments for investment instruments, insurance, loans, and debit cards with virtually any non-financial platform. For e-commerce enterprises, embedded finance services are advantageous since they speed up transactions and help boost client loyalty. Before this, customers had to visit the bank, submit a loan request, complete an evaluation process, and then wait for approval.

 

However, thanks to embedded financing, users may now quickly and easily obtain credit and make any purchases they need online. Particularly for embedded payments, the projection for this growth is impressive.

 

Conclusion

 

Fintech has limitless potential because innovation is built on rapidly changing technological technologies. Companies work to meet customers’ needs who desire better and more varied financial services.q

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BANKING

Financial Analysis: A Comprehensive Study of The Well-Being of A Country 

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Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Understanding the financial stability of a country requires a thorough understanding of financial analysis. In order to offer insights into the overall financial stability and overall wellness of the country, it entails evaluating a range of economic indicators, financial performance, and market movements.

In this article, we will delve into the fundamentals and importance of financial analysis in evaluating a country’s economic situation.

THE HISTORY ABOUT FINANCIAL ANALYSIS

Ancient Beginnings:

The roots of financial analysis can be traced back thousands of years. The ancient Mesopotamians, Egyptians, and Greeks were among the pioneers of documenting financial transactions, creating basic records of assets and liabilities. These early attempts laid the groundwork for the concept of financial analysis through the study of financial statements and ledgers.

Medieval Europe:

During the Middle Ages, Europe witnessed the rise of merchant guilds and the emergence of double-entry bookkeeping. Italian mathematician and Franciscan friar, Luca Pacioli, is often credited with formalizing double-entry bookkeeping, publishing his seminal work “Summa de arithmetica, geometria, proportioni et proportionalita” in 1494. The concept of balancing debits and credits within financial records formed the basis for modern financial analysis techniques.

Industrial Revolution:

The Industrial Revolution in the 18th and 19th centuries revolutionized business and the need for financial analysis grew rapidly. As companies expanded and diversified, investors began demanding more comprehensive financial reports to assess the potential risks and returns of their investments. The birth of limited liability companies further accelerated the need for financial analysis, as shareholders sought transparency in the performance of their investments.

Modern Era:

The 20th century witnessed significant advancements in financial analysis techniques. The advent of electronic computing in the mid-1900s enabled the processing and analysis of vast amounts of financial data, leading to the development of sophisticated financial models and ratios.

The Great Depression of the 1930s laid the groundwork for modern financial analysis as regulators sought effective ways to prevent future economic crises. The establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 brought about standardized reporting requirements, including the filing of audited financial statements. This increased transparency and standardized financial reporting provided analysts with a more accurate and consistent basis for their analysis.

The Rise of Quantitative Analysis:

In the latter half of the 20th century, the growth of computing power and the availability of large data sets propelled financial analysis into new territory. Quantitative analysis, utilizing statistical models and mathematical algorithms, started gaining prominence. Financial analysts began incorporating complex mathematical methods to assess investment opportunities, risk management, and portfolio optimization.

Modern Financial Tools:

With the advent of the internet and the digital age, financial analysis has become even more accessible and data-driven. Sophisticated software programs, data analytics tools, and artificial intelligence have revolutionized the way financial data is analyzed and interpreted. In recent years, technologies like machine learning have been leveraged to develop predictive models that can assess future trends and make accurate financial forecasts.

MEANING

Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Financial analysis is a fundamental tool that allows organizations and individuals to assess the past, present, and future financial health of a business or investment. Through a systematic examination and interpretation of financial statements, ratios, and other key indicators, financial analysis helps in making informed decisions, optimizing resources, and improving overall financial performance. In this article, we will delve into the meaning of financial analysis, its prominent components, and its significance across various sectors.

Financial analysis involves scrutinizing financial data to evaluate the performance and profitability of an entity. It assists in quantifying the effectiveness of financial decisions, identifying trends, predicting future outcomes, and benchmarking against industry standards. By analyzing financial statements, investors, analysts, and other stakeholders gain valuable insights into the financial position, liquidity, solvency, and operational efficiency of an organization.

FUNDAMENTALS OF FINANCIAL ANALYSIS IN A COUNTRY

  1. Gross Domestic Product (GDP): GDP is a primary indicator used to gauge the economic performance of a nation. Financial analysts analyze GDP growth rates and its components, such as consumer spending, government expenditure, investments, and net exports. This analysis helps in determining the overall strength of the economy and identifying areas of potential growth.
  2. Trade and Balance of Payments: Trade analysis focuses on a country’s imports, exports, and balance of payments. Evaluating trade patterns helps identify sectors driving the country’s economic growth, trade imbalances, and potential risks to the economy from external factors such as changes in global demand or disruptions in supply chains.
  3. Inflation and Interest Rates: Analyzing inflation rates and interest rates provides insights into the stability of a country’s economy. High inflation erodes purchasing power, while high-interest rates can impact borrowing costs, affect consumer spending, and investment behavior. Financial analysts assess the impact of inflation and interest rates on an economy’s overall competitiveness and economic growth potential.
  4. Government Debt and Fiscal Policy: Analyzing a country’s government debt levels and fiscal policy is crucial in understanding its financial sustainability. A high level of government debt may lead to increased borrowing costs, reduced investor confidence, and potential risks to economic stability. Evaluating fiscal policies helps determine whether a country is managing its finances effectively and implementing sustainable economic growth strategies.
  5. Stock Market Performance: The stock market reflects investor sentiment and provides valuable insights into a country’s economic outlook. Analysts evaluate key stock market indices, such as the country’s primary exchange, sector-specific indices, and market capitalization trends. Monitoring stock market performance allows for an understanding of investor confidence, economic growth expectations, and potential risks to the financial system.
  6. Banking Sector and Financial Institutions: A robust banking sector is essential for economic stability. Financial analysts assess the health of the banking system by evaluating indicators such as non-performing loans, capital adequacy ratios, and the overall stability and soundness of financial institutions. Understanding the well-being of financial institutions helps gauge the potential risks to the overall economy, including credit availability, liquidity, and financial contagion.
  7. Regulatory Environment and Governance: The regulatory environment and governance play a critical role in attracting investment and fostering economic growth. Financial analysts assess the effectiveness of regulatory frameworks, transparency in financial transactions, and the overall credibility and efficiency of institutions responsible for enforcing regulations. Evaluating the regulatory environment aids in understanding potential risks and opportunities for sustainable economic development.

SIGNIFICANCE OF FINANCIAL ANALYSIS IN A COUNTRY

Financial analysis plays a vital role across various sectors, serving the following purposes:

  1. Evaluating Financial Performance: By conducting a comprehensive financial analysis, companies can assess their performance, profitability, and financial stability. This, in turn, helps in identifying areas for improvement, developing strategic plans, and making sound financial decisions.
  2. Assessing Investment Viability: Investors rely on financial analysis to evaluate the profitability and risks associated with potential investments. Through detailed scrutiny of financial data, investors can determine the financial health and growth prospects of a company, aiding in making informed investment decisions.
  3. Facilitating Lending Decisions: Financial institutions utilize financial analysis to assess the creditworthiness of loan applicants. By analyzing financial statements, evaluating ratios, and assessing the risk profile, lenders can ascertain the borrower’s ability to repay loans and make sound lending decisions.
  4. Supporting Strategic Decision-Making: Financial analysis aids in strategic decision-making, such as expansion, diversification, or mergers and acquisitions. Understanding a company’s financial position and performance provides a foundation for evaluating the feasibility and potential outcomes of such decisions.

CONCLUSION

Conducting a comprehensive financial analysis provides valuable insights into the economic landscape of a country. By evaluating indicators such as GDP, trade patterns, inflation rates, government debt, stock market performance, banking sector health, and regulatory environment, financial analysts can gauge the overall financial health, identify potential risks, and recommend strategies for sustainable economic growth. Accurate and timely financial analysis acts as a compass, guiding policymakers, investors, and businesses to make informed decisions and contribute to the overall prosperity of the nation.

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How To Register And Activate PalmPay POS Machine

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How To Register And Activate PalmPay POS Machine

Are you a business owner seeking to broaden your payment options and offer a convenient payment solution to your customers? Or you’re an entrepreneur looking for a lucrative business idea with little start-up capital? Look no further than PalmPay, a popular and prominent financial institution in Nigeria. Within their array of services, the PalmPay POS machine stands out as an exceptional device with unique features and low rates. By becoming a PalmPay agent and acquiring their POS machine, you can facilitate cashless transactions, accept payments, and expand your business.

If you’re curious about how to request a PalmPay POS machine, you’re in the right place. This article will guide you through the application process, providing a step-by-step explanation to ensure you’re well-informed and ready to begin.

About PalmPay

PalmPay is a trusted financial technology company in Nigeria, dedicated to making financial services easy for everyone. With a strong focus on convenience, security, and innovation, PalmPay has become a reliable partner for businesses and individuals looking for straightforward payment solutions.

The PalmPay POS machine is a handy device that allows you to accept various payment methods, including debit cards, QR codes, and mobile payments. It lets your customers make cashless transactions, making your operations more efficient and improving the overall customer experience. Whether you have a small retail store, a restaurant, or offer services, having a PalmPay POS machine can greatly simplify your business processes and increase your earnings.

Requirements to Apply for PalmPay POS

To apply for a PalmPay POS machine, you’ll need to meet certain requirements and have the following documents ready:

  1. Valid ID: Make sure you have a valid identification card, such as an International Passport, National Identification Number (NIN), Voter’s Card, or Driver’s License.
  2. Utility Bill: Provide a utility bill, like an electricity, water, or waste bill, to confirm your address.
  3. CAC Documents: If you have a registered business, you’ll need to provide your Corporate Affairs Commission (CAC) documents.
  4. BVN: Ensure you have a valid Bank Verification Number (BVN) linked to your bank account.
  5. Bank Account: You should have an active bank account with any recognized commercial bank in Nigeria.

How to Apply for PalmPay POS Online

To apply for a PalmPay POS machine, follow these steps:

  1. Create a PalmPay Agent Account
  • Visit the PalmPay website or download the PalmPay Agent app from the Google Play Store or Apple Store.
  • Sign up by providing your name, email address, and phone number.
  1. Verify Your Account
  • After creating your PalmPay Agent account, you’ll need to verify it.
  • Submit your Bank Verification Number (BVN) and a valid ID card (e.g., driver’s license, national ID card, or international passport). You might also need to share your date of birth and bank account information.
  1. Apply for the POS Machine
  • Once your account is successfully verified, proceed to apply for a PalmPay POS machine.
  • Click on “Get PalmPay POS” and enter the necessary information about yourself and your business.
  1. Provide Your Business Documents
  • Ensure the documents you provide are accurate and up-to-date.
  • Submit your Business Name, Business Certificate (CAC), Business Address, Utility Bills, and any other requested information.
  • Click “Submit” to finish the application.
  1. Await Approval
  • PalmPay will review your application within 7 working days.
  • If your documents are in order, you may receive approval for a PalmPay Agent POS machine in a few days. In case of discrepancies, you might be notified of disapproval or experience a longer waiting period.
  • The approval message will be sent to you via SMS or email.
  1. Activate Your POS Machine
  • Once your application is approved, you’ll receive your PalmPay POS machine.
  • Follow the provided instructions to activate the POS machine and set it up for accepting payments from customers.

What’s the Price of PalmPay POS Machines in Nigeria?

PalmPay offers two type of POS terminals; Traditional POS terminal and android POS terminal. For the traditional PalmPay POS, you can start by paying a refundable fee of N20,000. If you prefer to own the POS machine permanently, you have the option to pay an additional N40,000. This way, the POS machine becomes yours for good, and you don’t need to worry about PalmPay taking it back.

If you’re interested in the PalmPay Android POS Machine, the cautionary fee is slightly higher at N30,000. Just like with the traditional POS, if you want to own it outright, you can pay an extra N60,000 to make it yours permanently.

Features of PalmPay POS

The PalmPay POS machine has some great features for businesses. Let’s  take a closer look at their main features:

  1. Easy-to-Use Interface: The PalmPay POS machine has a user-friendly interface that makes it simple for both merchants and customers to use. Its design ensures a smooth payment process with no complications.
  2. Secure Payments: Security is a top priority with PalmPay POS machines. They use advanced encryption technology to keep transactions safe from fraud. This builds trust with customers and gives businesses peace of mind.
  3. Payment Variety: The PalmPay POS machine supports different payment methods to suit customer preferences. It accepts debit and credit cards, plus popular mobile options like Apple Pay and Google Pay. This flexibility helps businesses serve a wide range of customers.
  4. Real-Time Reports and Insights: PalmPay POS machines offer real-time reporting and analytics. This means businesses can access transaction details, sales summaries, and other useful data to make informed decisions.

Conclusion

Getting a PalmPay POS machine in Nigeria is easy when you follow the steps in this guide. Just make sure to create and verify your accounts correctly and provide valid business documents. With the instructions in this article, you have everything you need to start your application. Feel free to drop your comments or questions  if you have any, in the comment box below and we’ll give you a prompt response.

Frequently Asked Questions

Applying for a PalmPay POS machine is free. However, there’s a caution fee of N20,000 for the regular PalmPay POS and N40,000 for the Android device.

When it comes to withdrawals, PalmPay applies a fee of 0.5% of the transaction amount. Here are the withdrawal charges for different amounts:

  • For a ₦500 withdrawal, PalmPay charges ₦2.50.
  • For a ₦1,000 withdrawal, the fee is ₦5.
  • For a ₦5,000 withdrawal, PalmPay charges ₦25.
  • For a ₦10,000 withdrawal, the fee is ₦50.
  • For a ₦500 withdrawal, PalmPay charges ₦2.50.
  • For a ₦1,000 withdrawal, the fee is ₦5.
  • For a ₦5,000 withdrawal, PalmPay charges ₦25.
  • For a ₦10,000 withdrawal, the fee is ₦50.

PalmPay POS machines support a wide variety of payment cards, including major debit and credit card networks like Visa, Mastercard, and American Express. They also work with contactless payment options such as NFC-enabled cards and popular mobile payment solutions like Apple Pay and Google Pay.

PalmPay POS transactions are highly secure. The machines use advanced encryption technology to protect sensitive data and prevent unauthorized access. Additionally, PalmPay employs strong security measures to ensure transactions are safe and the payment environment is secure.

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How To Register And Activate The Opay POS Machine

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How To Register And Activate The Opay POS Machine

OPay is a mobile financial platform that offers various services like money transfers, bill payments, and mobile top-ups. Among these services, OPay’s Point of Sale (POS) terminals are quite popular as they enable merchants to accept payments via customers’ mobile phones, or debit cards. POS business in Nigeria is a very lucrative business venture, especially in today’s digital era.

Opay POS machines have gained immense popularity as a leading payment processing solution in Nigeria since their introduction in 2010. Their reliability, user-friendliness, and a range of convenient features have made them a top choice for both merchants and consumers. In this article, we’ll give you a step-by-step guide on how to get an OPay POS machine, what you need to apply, and the fees involved.

About OPay

OPay is a leading mobile payment and financial services platform that has redefined the way individuals in Nigeria access and manage their finances. With a commitment to equalizing financial inclusion, OPay offers a wide range of essential services, from payments and transfers to loans and savings.

One of OPay’s notable features is its role as a Fintech Company, empowering agents and merchants with POS machines to carry out retail transactions and generate profits. This innovation has significantly impacted the local economy, providing opportunities for entrepreneurs to thrive. OPay has an impressive user base with 18 million registered app users and a network of 500,000 agents in Nigeria.

How to Become an OPay Agent

To become an OPay agent is quite easy, especially if you’re an existing user on Opay. If you already have an account on Opay, then follow these steps to upgrade your KYC (Know Your Customer) from level 1 to level 2 and become an OPay agent:

  1. Open your OPay app.
  2. Click on “Account” and tap on your current KYC level, located just below your name in the app.
  3. Select “Upgrade to agent.” Once you’ve successfully upgraded to the 2nd level KYC, you’ll automatically become an OPay agent.

NOTE: You’ll need your BVN and essential personal details, such as your gender, date of birth, and state of residence to complete your KYC.

How to Become an OPay Agent (New Users)

If you’re entirely new to OPay and wish to begin your journey as an agent, here’s how to get started with your agent registration:

  1. Visit the OPay website and click on “Merchant” in the title bar.
  2. Choose “Create an online merchant account” if you want to become an online agent without a machine, or select “Create a POS Merchant Account” if you intend to receive a Point of Sale (POS) machine.
  3. Once you’ve set up your account, send an email to ng-support@opay-inc.com if you’re registering via the OPay app to request the OPay merchant registration form.
  4. Fill out the application forms displayed on the portal.

NOTE: You’ll need your BVN and essential personal details, such as your gender, date of birth, and state of residence to complete your Opay merchant registration.

What are the Requirements to Apply for an OPay POS Machine?

To be eligible for an OPay POS Machine, please ensure that you fulfill the following criteria:

  1. You must be at least 18 years of age
  2. You should possess a legitimate government-issued identification document (such as a National ID, Driver’s License, or Passport)
  3. You are required to hold a valid business registration certificate or business name registration certificate
  4. Your business should have a valid physical address and an active phone number

Additionally, please be aware that OPay reserves the right to perform a background check on both the applicant and the business prior to granting approval for the application.

How to Get an Opay POS Machine

Acquiring an Opay POS machine in Nigeria is a straightforward process. If you’ve already upgraded your account to KYC level 2, you’ll need to progress to level 3 to apply for a POS device. Follow these steps:

  1. Launch your OPay app and navigate to the “Me” section.
  2. Click on the picture icon located at the top left to access your Account Details.
  3. Choose “Upgrade to Level 3.”
  4. Upload your photo.
  5. Submit a valid ID card (International passport, voter’s card, national ID, or driver’s license).
  6. Include a recent utility bill.
  7. Provide your BVN (Bank Verification Number).
  8. Submit your application.

The OPay team will assess and approve your KYC upgrade within 24 to 72 hours, and you’ll receive email and SMS notifications confirming this.

Once you’ve successfully reached KYC level 3, you can apply for a merchant POS terminal by following these steps:

  1. Log in to the OPay app on your device.
  2. Tap on the “Merchant Apply” icon.
  3. On the following page, input all required information.
  4. Upload your transaction history for the past 3 months.
  5. Include a valid ID card.
  6. Take a picture of your business location and upload it to the portal.
  7. Submit your application for review.

The OPay team will review your application, and if approved, you’ll receive your POS machine within 24 to 72 hours.

How Much is OPay POS Machine?

The OPay POS machine doesn’t cost anything initially, as the application is free. But you need to have at least ₦20,000 in your OPay Wallet as a caution fee. This amount will be taken from your wallet once your POS request is approved. The caution fee is refunded only when you return the POS terminal to the company as an agent.

OPay POS Charges & Commissions

Here’s a simplified breakdown of the charges and commissions for OPay POS services

Cash Transaction Charges:

  • Withdrawals below ₦20,000: 0.5% of the transaction amount
  • Withdrawals above ₦20,000: ₦100 flat charge
  • Deposits ₦5,000 and below: ₦10 flat charge
  • Deposits ₦5,001 to ₦10,000: ₦20 flat charge
  • Transfers above ₦10,000: ₦30 flat charge

Commission Structure for Data Top-Up:

  • MTN: 3% commission
  • Glo: 4% commission
  • 9Mobile: 4.5% commission
  • Airtel: 4% commission

Commission Structure for Utility Bills:

  • DStv: 2% commission
  • GOtv: 2% commission
  • PHCN: 2% commission
  • StarTimes: 2% commission

Conclusion

The process of applying and obtaining Opay POS machine is now more accessible than ever. With just a smartphone you can apply for a POS terminal from Opay. Simply follow the steps outlined in this article to get your Opay POS up and running. And with Opays lucrative offerings and cheap commissions, starting a POS business using the Opay POS terminal is a great business idea.

Frequently Asked Questions

How do Opay agents make money?

Opay agents make money by charging a commission from every transaction done on their platform. The amount they charge as commission depends on the type of transaction and the transaction’s value.

Is there a maximum transaction amount limit for a merchant?

Yes, the transaction limit for OPay merchants is 5 million Naira per day.

How long does it take for a reversal on OPay POS?

OPay reversals reflect instantly in the cardholder’s account.

Are there any charges involved in the registration and activation of an OPay POS machine?

No, there are no charges for registering and activating an OPay POS machine.

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