The Central Bank of Nigeria has implemented various initiatives to promote the adoption of digital payments, including the Cashless Policy and the creation of a Payment Service Banks (PSBs) framework. One of the reasons is to reduce the cost of banking services (including the cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach. PwC reported this initiative is designed to ensure a financial inclusion rate of 95% by 2024.
In line with the implementation of this policy, which means less cash in circulation, businesses must find new ways to receive payment across Nigeria. Paga provides API solutions to help business transition to the digital era with ease. One such solution is the Paga Collect API.
In this blog post, we’ll explore the
- benefits of wallet-as-a-service,
- key features, and
- how Paga Collect APIs can help businesses streamline their payment processes.
What Is Wallet-as-a-Service?
Wallet-as-a-Service (WaaS) is a type of financial service offered by companies that enable businesses to create and manage digital wallets for their customers. A digital wallet is an electronic device or online service that allows individuals to store, send, and receive payments, as well as manage their financial information.
With WaaS, businesses can integrate digital wallet functionality into their applications or websites, without the need for significant investment in technology and infrastructure. Paga will handle the technical aspects of creating and maintaining digital wallets, while the business focuses on its core activities.
Paga offers a range of features, including payment processing, security, fraud detection, and customer support.
Why Do Businesses Need In-App Wallet?
Here are 5 reasons businesses should consider building an in-app wallet:
- Faster payments: A wallet service can facilitate faster payments between customers and businesses. By using a digital wallet, customers can pay for goods and services instantly, without the need to wait for a bank transfer to clear. This can help businesses to improve cash flow and reduce the risk of late payments. As seen with the cash scarcity of early 2023, transport fares and market purchases can be made with instant verification when everyone is on the same wallet.
- Enhanced customer experience: Offering a wallet service can help businesses to enhance their customer experience. By providing a convenient and secure way for customers to pay, businesses can improve customer satisfaction and build loyalty.
- Cost savings: A wallet service can help businesses to reduce payment processing costs. For example, using a wallet service can be cheaper than using traditional payment methods, such as card payments or bank transfers.
- Increased security: A wallet’s service can provide businesses with increased security for payment transactions. Digital wallets typically use encryption and other security measures to protect sensitive data, such as credit card numbers and reduce the risk of fraud.
- Access to new markets: Offering a wallet service can help businesses to access new markets, particularly in regions where cashless payments are becoming more common. By providing a convenient and secure way to pay, businesses can expand their customer base and grow their revenue.
Use Cases for Wallet-as-a-Service
There are many ways businesses can use wallets-as-a-service to improve their payment processes.
- an e-commerce business might use a wallet to store customer payment information and quickly process transactions.
- A restaurant might use a wallet to manage its loyalty program and allow customers to quickly pay for their meals.
- A non-profit might use a wallet to process donations securely and efficiently.
- Betting apps can use a wallet to manage users’ funds for betting and other transactions. This system further enables them to add promotions, loyalty programs, rewards, and analytics.
Key Features of a Wallet-as-a-Service
Several key features are typically included in a wallet as a service. These include
- Wallet Management: It may provide tools for businesses to manage their digital wallets, including creating and managing user accounts, processing transactions, and monitoring wallet activity.
- Payment Processing: A WaaS platform provides payment processing capabilities, enabling businesses to accept a variety of payment methods, such as credit and debit cards, bank transfers, and mobile payments.
- Security: A WaaS platform includes security features to protect sensitive data, such as encryption, fraud detection, and authentication.
- Compliance: A WaaS platform ensures compliance with regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Paga does not do KYC for its business customers.
- Integration: A WaaS platform provides integration capabilities to connect with other systems, such as payment gateways, banking systems, and other third-party services.
- Customization: A WaaS platform allows businesses to customize the user interface and user experience of their digital wallets to align with their brand identity.
Paga Collect API Is Your Best Choice For Building In-App Wallet
If you’re looking for a fast, secure, and convenient way to collect payments from your customers, the Paga Collect API is the perfect solution. With this API, you can easily initiate payment requests to your customers and receive automatic notifications when payments are made. You can also choose to nominate a third party as the recipient of the payment, which means that you don’t have to worry about handling the payments yourself.
One of the best things about the Paga Collect API is that it supports multiple payment methods, including bank transfers, USSD, cards, and offline payments at agents. This means that your customers can choose the payment method that works best for them, making the payment process more convenient and accessible. The API is also user-friendly and easy to integrate into your existing systems.
Moreover, the Paga Collect API is designed with security in mind. It uses hashing and other security features to ensure that the data being sent between the client and server is protected from tampering or alteration. This way, you can be sure that your customer’s payment information is safe and secure.
These features can help businesses to improve their payment processes by streamlining transactions, reducing errors, and providing greater control over payment activities.