Wide acceptance and popularity
From the Nigerian perspective, bank transfers have emerged as the most widely used payment method.
As highlighted, a recent study found that 48.5% of Nigerians prefer electronic bank transfers as their payment method.
Notably, since 2021, bank transfers have surpassed card payments. This shift is attributed to the commendable efforts of the Nigeria Inter-Bank Settlement System (NIBSS), which operates the Nigeria Central Switch (NCS). The NCS serves as the pivotal highway facilitating instant transfers, contributing significantly to the prevalence of bank transfers in the country.
Trust and security
Many customers remain reluctant to input their card details online, primarily driven by concerns about security, fraud and the potential for identity theft.
Despite technological strides in ensuring the security of customer data, the prevailing fear associated with online transactions persists, fueled by reported incidents of fraud.
This apprehension is a persistent factor contributing to the continued popularity of bank transfers for online payments. The perceived safety of conducting bank transfer transactions addresses customers’ lingering fear, offering an alternative to sharing sensitive card information online.
For businesses, the failure to incorporate “pay with transfer” options in their checkout process poses a risk of alienating a segment of more cautious customers. Addressing these security concerns and providing alternative payment methods becomes crucial for businesses looking to cater to a diverse customer base and alleviate the reservations of those who remain wary of online card transactions.
Simplified payment process and reduced friction
The ‘Pay with Transfer’ method offers a significant advantage with its simplified process.
Businesses often face the challenge of losing customers due to lengthy payment processes.
The bank transfer option solves this issue, allowing customers to make payments effortlessly without going through lengthy processes and steps.
With this method, customers initiate and complete payments via their bank app or USSD with just a few clicks.
This simplified process reduces the likelihood of cart abandonment and enhances customer satisfaction.
This benefit applies to offline transactions. It is not uncommon for customers to show up to physical stores without cash or their cards, but one thing they will never forget is their phones. If you do not have the Pay with Transfer option, they can’t make a purchase, and you lose that sale.
Even some businesses that have this option in their stores are not getting it right because they make their customers transfer to an account number and make them wait long minutes for confirmation. For your customers to have the optimal experience, the confirmation needs to be instant after they transfer so they can be on their way; nobody likes waiting.