How To Transfer Money With eNaira App
Nigeria became the first African country to introduce a central bank digital currency (CBDC) this week, when President Muhammadu Buhari presented the eNaira at the State House in Abuja. This article explains How To Transfer Money With eNaira App.
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The digital money, which is issued by the Central Bank of Nigeria (CBN), is based on a private blockchain technology developed by Bitt Inc and has the same value as fiat or physical currency.
The new currency can be accessed and used through the eNaira wallet (dubbed “Speed”), which is a distributed ledger-based digital wallet. App shops such as Google Play Store and Apple App Store have the wallet available for download.
However, there are still several unanswered questions about the eNaira’s use cases.
Use cases for eNaira
Customers must be onboarded and the eNaira wallet feature must be integrated into financial institutions’ digital banking channels.
The wallet is essential for consumers and merchants/businesses to access, keep, and use the eNaira. Users can also execute transactions by dialing a USSD shortcode and following the on-screen instructions.
The conditions for opening a wallet, transaction and balance restrictions, as well as transaction types allowed, are determined by the wallet tier a user belongs to, according to CBN standards.
According to sources, the specialized individual eNaira wallet received over 100,000 downloads on Google Play Store in less than 48 hours after its launch before being deleted due to a slew of complaints and negative reviews. More than 10,000 people had downloaded the merchant edition.
Person-to-person (P2P) transfers between friends and family, person-to-business (P2B) payments for products or services, and person-to-government (P2G) payments for public services are currently available to individual consumers via the wallet.
Nigerians can also transfer money from their bank accounts to the eNaira fast wallet and back, get support allowance directly from the CBN via government-to-person (G2P) transfers, and use any other services that the CBN may sanction from time to time.
Merchants can use the wallet to send money to their bank accounts and vice versa, as well as do M/B2P (merchant/business-to-person) transfers. On a daily basis, merchants must sweep their balances into their bank accounts.
As a result, eNaira Merchant speed wallets can be used to receive and send eNaira payments for goods and services, as well as salary payments.
How-to instructions are currently available on the websites of commercial banks including Stanbic IBTC and Guaranty Trust Bank. Individual and merchant users may expect secure, faster, cheaper, and more convenient transactions thanks to the wallet, according to the banks.
In the long run, the CBN sees a scenario in which financial institutions establish an ecosystem of services around eNaira, such as cross-border transfers. For example, a Nigerian trader with a UBA account can use eNaira to pay his import costs from China.
The digital currency has the potential to bring a large number of Nigerians who do not have bank accounts into the formal financial system. A phone number is required to open a tier 0 wallet, whereas a mobile number and a confirmed national identity number are required for tier 1 wallets (NIN).
Without a bank account, a plumber or vulcaniser in Oyo or Cross River State can receive payments through phone, store them in his wallet, and deal with any merchant.
Furthermore, the CBN intends to include the eNaira into its FX process via international money transfer operators (IMTOs), allowing Nigerians to receive remittances more readily.
The first 90 days of transactions on the eNaira platform are free, after which banks will revert to the applicable rates indicated in the CBN’s guide.