Online top-up brews war between banks, recharge card sellers in FCT

People welcome innovations owing to their uniqueness in reforming the way things are done. Many long for innovation and when it comes plunge into it with gladness and joy. The same, however, cannot be said of mobile handset recharge card sellers in the Federal Capital Territory (FCT). To them, innovation that brought about the virtual […]

People welcome innovations owing to their uniqueness in reforming the way things are done. Many long for innovation and when it comes plunge into it with gladness and joy. The same, however, cannot be said of mobile handset recharge card sellers in the Federal Capital Territory (FCT). To them, innovation that brought about the virtual mobile top-up is a threat to their business.
There is a new trend in the territory with most phone users now recharging their handsets without necessarily buying recharge card vouchers. Several financial institutions now have a code with which their customers top-up their mobile lines across all the mobile network service providers.
The development, meanwhile, has led to a cold war between some financial institutions and the recharge cards retailers in the territory.
Though the battle is subtle, the effect is far reaching on the retailers as many said they record low patronage since mobile network subscribers now recharge their handsets through virtual top-up, with the amount deducted directly from their bank accounts.
With the virtual world, though a part and parcel of the telecommunication business, some of the recharge vouchers retailers that spoke to Aso Chronicle said the innovation has snatched most of their high-buying customers leaving them with people that are yet to tap into the new-fangled mode of recharging handsets.
Some of the mobile recharge cards retailers said they are considering abandoning the business for something else.
“Most of my customers that buy large amount of recharge cards from me have stopped,” Martins Okoye, a retailer at the entrance of an estate in Lokogoma said.
Martins said though patronage is still relatively good, it is now without “good quality,” as “most of my customers now only buy between N100 and N500 worth of recharge cards.”
Martins said he is considering looking for another job as the returns he gets do not “blend” with the long hours he spends in the sun on a dusty road in one of the private estates in Lokogoma.
Mrs Rosemary Emmanuel, a widow, said she has been selling recharge cards for more than three years in Bwari. She said with the proceeds, she has been able to fend for her two children since her husband died.
“On every N100 credit I sell, I make N2 profit, but when I sell recharge card of N1,500 naira I make N100 as profit,” she explained adding that the new trend takes the best part where she realizes profit.
“Now there is no more patronage since some individuals prefer to buy airtime from their respective banks using their mobile phones,” she complained.
With the foreseeable threats to their source of income, many of the recharge card retailers have, however taken some measures to remain relevant in the scheme of things.
Mrs. Stella Michael, a retailer in Gwarinpa said she does not restrict herself to the vouchers alone, “I also sell airtime by virtual top -up using my business phone,” she said while explaining how she is trying to adapt her business to the new regime.
“All I have to do is collect my customer’s phone number and the amount of airtime he or she wants to buy, and then I send the required amount of air time to the customer’s phone immediately,” she said.
She explained further that customers prefer the new method, as against the otherwise analogue collection of recharge voucher and inputting of the numbers into their phones, because it is more convenient for them and faster, adding that it is also more profitable for her.
“I get more percentage from making use of the VTU format than the recharge vouchers,” she said adding that her customers also do not need to be physically present before she sends airtime to them.
Unlike Stella, however, many recharge card retailers are still grappling with the reality and yet to fully make the best of the situation.
 Happiness Inyang, a recharge card seller in Dawaki, an Abuja suburb said her business is not affected with the trend.
She said: “I stated this business two years ago with N10,000, now I buy cards of about N150,000.”
She said that regardless of what is trending in the business, her plan is “to go higher.”
 On the part of the residents, some commend the electronic means of recharging their mobile lines saying it is in line with the Central Bank of Nigeria’s (CBN) cashless policy.
“I cannot remember the last time I bought recharge card from the sellers. All I need do is punch some numbers on my phone and it’s done,” Adeola Oyelade, a Nyanya resident said.
While commending the latest means of recharging, she however admitted that it could force some people to be out of job.
“It is a pity, there are now fewer people around the woman selling in our estate unlike before that the place is usually crowded especially at night,” she said.
Another resident, simply identified as Mr. Samuel said due to the nature of his job, it is more convenient for him to recharge online instead of finding a recharge card retailer.
“At times I might be short of cash when am supposed to make an urgent call, so I will immediately use my mobile phone by pressing some codes and it’s done. It also saves the stress of going out to look for people who sell recharge card,” he said.
Though he said the method also has its attendant challenges, “if the network is very bad from the bank, it will be very difficult to use the service.”
He continued: “In most cases when the network seizes, my account would be debited and I will not receive the recharge card until after some time.”