Huge and Cautious Welcome for PayPal in Nigeria

As PayPal services go live, Nigerians offer differing opinions as to the safety and security of the online payment system. 


This service will allow the Nigerian community and other markets to register for a PayPal account and start making payments on millions of websites around the world. 


Ethelbert Mbama, ‎managing director and CEO of Circuit Systems and Network Communications Limited (CSNC), said the entry of PayPal proves that international money platforms and banks are beginning to trust and believe in Nigeria.


Nodding in agreement, Toheeb Agboola, chief technical officer, Information Technology Resources and Development Network (ITRDN), said the entrance of PayPal into the country’s online eco-system will boost the e-commerce landscape.


“As you are aware our online e-commerce transactions are 90% cash on delivery, if PayPal becomes fully functional that will drastically reduce as buyer confidence will increase, and more people would prefer buying with their PayPal account, because it provides a reliable guaranty for refund/chargeback in any eventuality. It will also help to strength the character of the Nigerian business to play strictly by the rule,” he said.


“It will help to bring more online businesses and encourage online transactions especially e-commerce, send and receiving money, et cetera. Considering the recent CBN directive on Forex transactions, don’t you think this is the best time for Paypal; as you transact in your currency and it’s transferred accordingly?,” he asked rhetorically. 


At the same time, Agboola said it is not yet uhuru for the nation’s e-payment system, adding that the financial institutions and the government have a lot to do, if Nigeria must benefit without hindrance in the global market place and online economy.


He said, “There are several shortcomings in terms of standards and rules that our financial instructions don’t adhere to. Maybe, now is the time for them to review and make a commitment to toe the line of benchmarks available in other countries, as we all know most fraud perpetuated in Nigeria are aided by our banks. This calls for concern among global payment providers; it shows a lack of standard and order”.


However, Rupert Keeley, senior vice president of PayPal Europe, Middle East and Africa, said, “While technology is breaking down barriers to global commerce, many people are wary of entering their credit or debit card details on the website of an unknown seller, operating in a distant country. Paying with PayPal provides peace of mind, because people never have to expose their financial information during the transaction.”


Although the PayPal service offers consumers online payment alternatives via mobile phones or PC’s, there are still risks involved anytime an exchange of personal, financial information is provided through any web portal . 


It’s ultimately the consumer’s responsibility to use known and trusted sites to lessen the risk of fraud associated with online purchases and payment transactions.