Clickatell, a CPaaS innovator and Chat Commerce leader, has partnered with the Central Bank of Nigeria (CBN) to launch a USSD channel for the country’s Central Bank Digital Currency (CBDC) as part of the country’s drive to make basic banking accessible to all Nigerians, ultimately driving financial inclusion.
Clickatell’s collaboration with the CBN will help deliver fast, simple, and cost effective eNaira banking services to all Nigerians using the USSD channel, eliminating the need for data and available on all handsets.
“Introducing the USSD short code allows non-banked Nigerians, many of whom do not have smartphones, to access cashless banking services and is a big win for the stated goals of delivering meaningful financial inclusion. Clickatell’s role in making this a reality has been one of the most important achievements of our engagements in Nigeria.”Uzo Nwani, Clickatell Commercial Director, West Africa
The new USSD channel allows Nigerians using the *997# short code to create their eNaira wallet. Once this is done, they can easily check balances and transfer funds, as well as safely buy airtime or data for themselves or friends and family. Safeguarding their wallets is also easy on the channel and users can check and update their information, change and reset their pin, or even block the wallet if necessary.
“The USSD channel is a vital part of our journey towards realizing our financial inclusion vision. We see the eNaira as a leap forward in the evolution of money. Thus, CBN is working with partners who are committed to taking advantage of this new technology for continuous innovation towards delivering exciting new features.”CBN Deputy Governor Economic Policy, Dr. Kingsley Obiora
Unstructured Supplementary Service Data or USSD, is a communications protocol that is supported by 99% of GSM handsets. It remains particularly relevant in developing communities where it is used to provide services at a much lower cost and can be used without requiring access to the user’s SIM card.
Despite the rapid growth of smartphones, the majority of Nigerians are currently using feature phones, making an excellent case for the USSD offering. The CBN is counting on the new channel to make rapid inroads towards getting most of the 30% of unbanked Nigerians into the formal banking system.
eNaira to improve financial inclusion
The eNaira is a Central Bank of Nigeria-issued digital currency that provides a unique form of money denominated in Naira. eNaira serves as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments.
During its launch in October 2021, Nigerian President, Muhammadu Buhari, said Africa’s first central bank-backed digital currency would help boost remittances, foster cross-border trade, and help his government make welfare payments more easily. With financial inclusion at the heart of the eNaira goals, President Buhari also said that he believed the CBDC would increase GDP in the country by $29 billion over the next 10 years.
As part of its efforts, the CBN is working hard to boost awareness and education around the new digital currency and has offered an incentive of 200eNGN airtime for the first 100,000 users to onboard using the eNaira USSD feature.
Looking ahead, Nwani said the Clickatell solution ideally positions the system for new and collaborative additions to help boost the eNaira services.
“Our Chat Flow product provides a robust platform to support rapid innovation. Digital currencies provide measurable customer benefits including lower costs and a simple user experience and adding new innovative features over time will definitely attract more customers. There is no doubt that the CBN has set the benchmark when it comes to financial inclusion in Africa, and we look forward to being part of that journey”.Nwani
Clickatell is the global Chat Commerce leader powering businesses to connect, interact, and transact with consumers anytime, anywhere in chat.
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