… Global remittance market estimated to reach $948.99 billion in 2023
The new partnership forged between Interswitch and Google Pay (Gpay) will not only boost Nigerian businesses but will also promote international cards on the Interswitch Payment Gateway (IPG), positioning businesses to seamlessly cater to a broader international clientele.
Interswitch integration of Google Pay (Gpay), a mobile payment service developed by Google to facilitate in-app, online, and in-person contactless payments on mobile devices will streamline the checkout process on the Interswitch platform.
The IPG enables businesses and individuals to benefit from the simplicity and security of contactless payments and digital storage, aligning with the global trend towards more streamlined transactions.
With this, merchants can now store payment details within Google Wallet.
This development is coming barely a year after Flutterwave, Nigerian fintech integrated the digital wallet for both merchants and businesses to make payments across Africa.
Damilare Akinlotan, Financial Analyst at Krypton Venture Studio said, “Interswitch integration with Google Pay will capture more market share in Nigeria’s payment system.
“Payment gateways facilitate e-payments, that is when a user initiates a payment online, payment gateways request authentication from the user (FaceID, PIN, OTP, Tokens) to verify that all information provided is accurate and belongs to the user.
“Apple Pay and Google Pay offer very similar services but each has its own peculiarities such as operating ecosystems and applicable devices – essentially allowing people pay through their assigned wallets.
According to Akinlotan, competitors with Interswitch are the likes of Psystack, Chams, ETranzact, Flutterwave, Remita, etc. If this integration gains traction and sees wide adoption via Interswitch then it can cause a shift in Market share allowing Interswitch to process more payments via the Google Pay platform.
Recent data from The Tech Report indicates that in 2023, there will be over 150 million Google Pay users worldwide. Beyond Nigeria, Google Pay has been launched in several African countries, including Tanzania, Kenya, Rwanda, Uganda, and Ghana, primarily to facilitate remittances.
The Global Remittance Market, according to research and market report is estimated to be $948.99 billion in 2023 and is expected to reach $1250.91 billion by 2028, growing at a CAGR of 5.68 percent, highlighting the growing importance of digital payment solutions like Google Pay.
“By integrating Google Pay into our payment gateway, we are empowering businesses to harness the potential of a global customer base while ensuring secure and reliable payments,” said Muyiwa Asagba, the Managing Director of Digital Commerce and Merchant Acquiring at Interswitch.
He said, “As a technology-centric company, Interswitch continues to align with brands that hold shared values to drive the evolution of payments across Africa and beyond.”
Interswitch, an African integrated payments and digital commerce platform company as of March 2023 transaction volume processed hits 1.2 billion highest the company has ever processed in a single month within Nigeria alone.
According to the company, the record underscores the increase in the volume of electronic payment following the scarcity of the naira, which has pushed more traders and individual spenders to alternative payment channels.
The Nigeria e-payment market also grew within that same period as the scarcity of the Naira pushed the value of the transaction to N123.8 trillion in the first quarter of 2023, a 44.6 percent increase from N85.6 trillion reported in 2022, data From the Nigeria Inter-Bank settlement scheme shows (NIBSS).
The industry data reported a surge in the volume of 2.5 billion, this is by far the highest three-month volume of NIP transactions reported in the last 11 years when the Central Bank implemented its cashless policy, indicating that more Nigerians are embracing the cashless economy.
