1. Payment System Vision 2020 1 International Payments Conference Abuja 2013 PSV Initiatives – Breakout Session Bill Payment and Direct Debit

2. Payment System Vision 2020 2 AGENDA  Background to Initiative  Stakeholders  Synergy with FSS2020  Synergy with Other Initiatives  Current Status  Next Steps  Q & A and Discussions

3. Payment System Vision 2020 3 Background to the Initiative Summary of the proposed Initiative  To drive to conclusion the current initiative for Bill Payment by building on the significant improvements to Direct Debit programs by increasing usage of Bill Payment programs across key industry segments - Insurance, Pensions, Telecommunications, Cable TV and Utilities.  To encourage the development and deployment of technology to automate the process of bill presentment / payment and thus streamline the bill payment process in Nigeria. Rationale  The current initiative has been successful in implementing a more robust offering for direct debits.  Regulatory framework has been established for all stakeholders  It is important to realise the commercial success by a program of deployment of bill payment solutions and public awareness of direct debit as a payment method.

4. Payment System Vision 2020 4 Background to the Initiative Objectives  Resolve mandate activation issues with banks.  Resolve issues related to banks insisting on confirming each debit request received.  Eliminate delays in upload/update of mandates by banks  Grow usage through aggressive sensitization and publicity of benefits of automation of bill payment processes.  Encourage billers to institute incentives to drive adoption of DD.  Ultimately leverage the developments under the various financial inclusion initiatives for adoption of this means of payment by the hitherto unbanked for settlement of bills.

5. Payment System Vision 2020 Stakeholders 5 S/NOBANKING INDUSTRYUSER COMMUNITYSERVICE PROVIDERS 1 All Deposit Money Banks Telecommunication Companies / ISPs / Data Service Organizations NIBSS 2 Insurance CompaniesE-tranzact 3 Water and Waste Management Boards of State Governments Interswitch 4 Power and Postal ServicesSystemspecs 5 Pensions and Investment Funds Others 6 Cable / Satellite TV Service Providers 7 Mortgage Institutions 8 Professional Organizations 9 Cooperatives 10 Clubs and Associations

6. Payment System Vision 2020 Synergy With FSS2020 The synergy between this initiative and FSS2020 is viewed from two perspectives. 1.Overall Work Streams: Identified FSS Work Streams are Financial markets, Insurance, Mortgages and Credit(Micro/SME). 6 FSS20202 Work streamlevel of synergyRationale and approach to leverage synergy Financial MarketsLowThis market segment deal in medium and long term funds mobilization. Direct debit deals more in the retail and consumer segments. InsuranceHighImproved efficiency in management of reoccurring premium payments, thus elimination of gaps in insurance cover periods. MortgagesHighImproved efficiency in management of reoccurring mortgage payments, thus eliminating manual payment processes. Credit(Micro/SME)HighImproved efficiency in management of micro credits.

7. Payment System Vision 2020 Synergy With FSS2020 7 2. Identifies very clearly with the 3(three) common themes of the FSS2020. Improved adoption of DD will promote payment system efficiency and credit culture in the system. Billers will experience improved cash flow management due to greater predictability. FSS20202 Themelevel of supportRationale and approach to support the theme DeepeningHigh Direct debit adoption will foster improvement in the payment system and promote efficiency. It will also positively impact the function of credit bureau from a consumer and retail credit point of view. Economic GrowthHigh Increased velocity in flow of money due to quicker access to value and reduced drag in revenue generation from financial assets. InternationalMedium Promote international recognition of Nigeria's Payment System.

8. Payment System Vision 2020 Synergy With Other Initiatives 3. Direct debit aligns with other initiatives being promoted across the country in varying ways. See table below. 8 InitiativeLevel of SynergyRationale and approach to leverage synergy Financial InclusionMedium DD can be and should be applicable to wallet accounts as well. it will leverage the development of mobile money and improve access to services in a convenient and efficient manner to the hitherto unbanked. National IDMedium The National ID Scheme should address some of the challenges around KYC thus promote access to the financial system (virtual/real accounts). Digital InclusionHigh Supports digitalization effort by encouraging non-cash transactions and improving the experience of users of services. WAMZ/ECOWAS N/A No strong synergies at this time.

9. Payment System Vision 2020 9 Aug 2013 9 Payment Systems Vision 2020 Current Status Sensitization and awareness effort has kick-started following implementation of action steps agreed by the Work Group: 1. Direct engagement with identified Industry Segments to drive adoption of Direct debit for collection of subscriptions. The following segments were identified for this purpose:  Professional Organizations  Cooperative societies  Insurance Companies  Telecommunication companies  Pensions  Mortgage Institutions  Clubs and Associations.

10. Payment System Vision 2020 10 CURRENT STATUS Sensitization letters have been dispatched to 25 organizations as follows:  Professional Associations17  Labor Unions1  Social Clubs7 2. There is infrastructure available in the market for full automation of direct debit processing.

11. Payment System Vision 2020 11 NEXT STEPS 1.Publish the FAQ in appropriate media to reinforce the message on adoption of this channel. 2.Continue direct engagement effort to grow use. Hold enlightenment sessions and work with players to resolve emerging issues. 3. Monitor progress and celebrate success through recognition of top users of this channel. Views and suggestions on way forward are welcome

12. Payment System Vision 2020 Questions and Discussion  Q&A 12