Banking
Deepening Merchant Trust in Financial Services – Here’s What You Need to Know
By Oluwayimika Debo-Carpenter
In the digital financial services ecosystem, the settlement process plays a vital role in ensuring that funds move securely and accurately from customers to businesses, and from one financial institution to another. It’s the critical final step that confirms the completion of a transaction, providing merchants with the assurance that payments made by their customers are properly credited to their accounts within agreed timelines.
For fintechs and payment processors, having reliable and transparent settlement processes isn’t just an operational necessity, it’s essential for building and maintaining trust with merchants. Any inconsistency, delay, or lack of clarity around settlement can erode confidence and damage long-term relationships.
In the fast-paced world of financial services, settlement operations may not always be in the spotlight, but they are the heartbeat of merchant trust. As someone who has navigated the evolving landscape of settlement operations for almost six years, I’ve come to understand that transparency isn’t just a good practice – it’s a necessity for deepening trust in the entire financial services value chain.
So, follow me as I walk you through how to build transparent settlement processes.
Transparency Starts With Process Clarity
Transparency begins with how well we define and communicate settlement processes. Since merchants are aware of when they will receive settlements (as per the settlement cycle config agreed upon) on successfully processed transactions, where unexpected delays may occur, they need to be made aware of the reason for the delay and how those exceptions are handled. Ambiguity leads to anxiety; process clarity builds confidence. For example, we’ve dealt with cases which led to unprocessed settlements. Rather than leaving merchants in the dark, we documented the issue, shared expected timelines, and provided regular updates. That alone eased tension.
Communicate Like a Partner, Not a Processor
A delayed settlement becomes less frustrating when it’s paired with honest, timely communication. One of the turning points in my journey was learning how to communicate setbacks without triggering panic. In one situation, we experienced a provider glitch that impacted multiple accounts. By being upfront, acknowledging the issue, and explaining the steps being taken, we turned a potential crisis into a collaborative resolution.
Own Your Errors (And Your Providers’)
It’s easy to shift blame when something goes wrong upstream, but accountability strengthens trust. Even when the fault lies with a provider, our merchants expect answers from us. That’s why we always lead with ownership and follow with action. Whether it’s an erroneous credit or a delay in settlement posting, being the first to acknowledge and act is what matters most and sets settlement processes apart in the industry.
Build Recovery and Reconciliation Into the Process
No matter how robust your systems are, errors happen. What counts is how quickly and transparently you recover. Here at Moniepoint, we have instituted workflows that allow us to trace, reverse, and reconcile erroneous transactions swiftly. Having a dedicated recovery process means that when something goes wrong, there’s already a roadmap to resolution – and merchants appreciate that a lot.
Tools and Automation Help, But People Seal the Trust
Dashboards, alerts, and automated reconciliation tools are invaluable, but they can’t replace human reassurance. Make it a priority to have someone on your team walk merchants through the data, interpret results, and offer real-time support. That human touch often makes the difference between a good experience and a great one.
Finally, Trust Is a Daily Settlement
Ultimately, trust isn’t built in a day—it’s built in every settlement cycle, every reconciliation, and every support ticket. It’s about being consistent, communicative, and committed to doing right by the merchant.
In my journey, I’ve found that transparency transforms a transactional relationship into a trusted partnership. So the next time a settlement issue arises, remember: settle funds, but more importantly, earn trust.
Oluwayimika Debo-Carpenter is Lead, Merchant Settlement at Africa’s fastest growing financial institution, Moniepoint Inc
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, effective January 2026.
The new set of cash-related policies are designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.
This was contained in a circular released on Tuesday, December 2, 2025, and signed by the Director of the Financial Policy and Regulation Department of the central bank, Ms Rita I. Sike.
The apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances. However, with time, the need has arisen to streamline these provisions to reflect present-day realities.
“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the CBN stated.
So, effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million.
Withdrawals above these thresholds will attract excess withdrawal fees of 3 per cent for individuals and 5 per cent for corporates, with the charges shared between the CBN and the financial institutions.
Daily withdrawals from Automated Teller Machines (ATMs) will be capped at N100,000 per customer, subject to a maximum of N500,000 weekly. These transactions will count toward the cumulative weekly withdrawal limit.
The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.
The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.
Deposit Money Banks (DMBs) are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.
They must also create separate accounts to warehouse processing charges collected on excess withdrawals.
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.
However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.
The apex bank clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.
This is the latest move by the apex bank to strengthen the Nigerian financial ecosystem. In October, the CBN issued a directive requiring all financial institutions to submit detailed monthly reports on the activities of their Point-of-Sale (POS) agents.
In the circular signed by the Director of the CBN’s Payments System Policy Department, Mr Musa Jimoh, it was stated that the reports must include comprehensive data on the nature, value, and volume of transactions conducted by agents.
The circular also stated that POS agents are restricted to a maximum of N1.2 million per day, while individual customers are limited to N100,000 in daily transactions.
CBN said these limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework.
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