Nigeria’s evolving e-commerce and diversification drive

Electronic commerce, commonly called e-commerce, is the trading or facilitation of trading in products or services using computer networks, such as the Internet or online social networks.It has been a strong catalyst for economic development in Nigeria- led to the creation of jobs; boosted productivity; hugely reduced the cost of doing business; and provided access to new markets.For consumers, it has made more goods available at competitive prices, leading to significant gains in the general standard of living. It has also added convenience, because a click of the button in the comfort of the bedroom will cause a delivery at the doorstep. Yet, many others have benefitted from the initiative.Of course, the Deposit Money Banks have played an essential supporting role in the country’s burgeoning e-commerce industry, which has indeed been the toast of both local and foreign investment.It has helped local technology companies thrive, as well as enabled global technology players from Silicon Valley to Europe looking to capitalise on Nigeria’s large population and its potential as a hub on the African continent, to successfully operate.The contribution of the banking sector to e-commerce has taken several forms. Firstly, as financial institutions, they have provided the technology infrastructure critical to the flow of payments to and from the agents participating in e-commerce.The backbone of e-commerce is payments, and as e-commerce continues to grow, and online transactions soar, users should rely more on the robustness, security and convenience that this financial infrastructure provides. E-commerce is only able to grow when ease, convenience, and security is ensured.Due to the efforts of deposit money banks in ensuring safety and trust, the inhibitive fear customers have in conducting online transactions has been significantly allayed, leading to the inclusion of more users and the expansion of the e-commerce ecosystem.Additionally, deposit money banks have supported organisations in leveraging e-commerce technology to engage with their customers. Stemming from their industry experience, banks have assisted businesses in adopting e-commerce in their delivery of goods and services, especially in setting up the infrastructure and payment capabilities for them to successfully engage in e-commerce, thereby enabling such clients receive payments efficiently for the goods and services they offer.Due to this vital support, customers are conveniently able to pay for services such as electricity and water bills, Internet and cable subscriptions; airline and cinema tickets; even financial services like insurance and payment of taxes from the comfort of their homes. Source: Guardian