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Nigeria's First Non-Bank Credit Card Launched

August 29, 2014

Eromosele Abiodun

Effort by the Central Bank of Nigeria (CBN) to make the Nigerian economy cashless, received a boost yesterday, with the introduction of the nation's first non-bank credit card.

Following the launch, O3 Capital Nigeria Limited, promoters of the product became the first non-bank credit card issuer in Nigeria.

Briefing journalists, investors and stakeholders in Lagos yesterday, Chief Executive Officer of O3 Capital Nigeria Limited, Mr. Abimbola Pinhiero said the Nigerian economy cannot move to the next level without consumer effective lending.

He said the World Bank and IMF economic growth forecast for Nigeria will not be sustained if all Nigerians do not work together to sustain the growth. He disclosed that there are only 100,000 credit cards cross banks in Nigeria today, adding that with a population of 160 million, the country deserved at least a million credit cards.

The 03 credit cards, he said, work on the Interswitch network, "which means they can be used on all ATMs, POS and internet payment sites in Nigeria."

According to him, the Card enterprise is driven by an ultramodern Card Management System that is provided by a leading Canadian software company Bevertec CST and a Customer Relationship Management System, which is provided by Redmain, a UK based CRM Solution provider that provides a robust experience for the cardholder while guaranteeing transaction and data security.

"O3 Cards comply with the international EMV standard with data transmission done under an encrypted and secure environment. Our entire operating systems would run on certified platforms that are PCI DSS certified in line with international security standards issued by The PCI SSC (Payment Card Industry Security Standards Council).

"The best marketing model that describes the credit card market in Nigeria is the adoption model. This is the model where the industry is "virgin" (in its state of infancy) and there is a need for the establishment of a credit card culture and infrastructure. O3 Capital intends to drive the evolution of this credit card culture in Nigeria given that there are less than 100,000 existing credit cards in a country that has a population of 160 million. We believe that the key to achieve competitive advantage is through our product differentiation strategy and product efficacy, "he added.

He further stated that the mission of O3 Capital is to provide the average Nigerian with access to funds to enable them meet everyday consumption requirements.

With O3 cards, he said, the average Nigerian will not be "cash-strapped" but will have that additional funding source to meet daily needs.

"With O3 cards, all the customer's basic needs become affordable. Our objective correlates to that of the Central Bank of Nigeria's Financial System Strategy 2020, which includes the Cashless Policy. Its objective is to promote economic activity by utilising innovative payment systems with ease of accessibility to the general populace, "he said.

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Source: AllAfrica

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