The Managing Director/Chief Executive Officer of Routepay Fintech Limited, Abayomi Olomu, has suggested digital banking alternatives to the use of automated teller machines to reduce costs.
Olomu’s suggestions came on the heels of the implementation of the new transaction fees on automated teller machines used as directed by the Central Bank of Nigeria.
The country’s apex bank in February announced that Nigerians withdrawing from other banks’ ATMs will pay N100 for on-site ATMs and a surcharge of up to N500 for off-site ATMs. This new charge affects transactions of less than N20,000 from another bank’s ATM.
Olomu said Nigerians have several digital banking channels, including mobile banking apps.
USSD codes for feature phones, internet banking, and mobile money services that could be used for transactions.
These options, according to him, allow users to perform transactions like transfers, bill payments, and airtime purchases, all without needing to visit a bank or ATM.
Citing the example of the Routepay app, Olomu said the fintech platform offers seamless, user-friendly alternatives to traditional banking.
“People can make transfers, pay bills, buy airtime, and manage their finances all directly from their phones without visiting an ATM. Plus, the platform offers 24/7 access to customers’ accounts, making it easier for them to track spending, save time, and reduce banking costs,” he said, adding that managing money through such platforms becomes simpler, faster, and more affordable.
He observed that cash withdrawals in Nigeria have become increasingly costly and inconvenient due to high fees and limited access to ATMs. This, he explained, is pushing more people towards digital banking solutions like mobile apps, “which is a safer way to manage finances without the need for physical cash.”
According to him, shifting towards cashless transactions can help reduce the burdens of high costs and inconvenience and promote greater financial inclusion.
He said, “Digital payment solutions can help reduce the burden of additional charges by offering low or no fees for transactions. Fintech platforms help users save on transaction fees and avoid hidden charges by providing simple, cost-effective ways to handle daily financial activities, thus making banking more affordable and accessible.’’
These payment options, he said, include bank transfers, bill payments, airtime purchases, and QR code payments.
He identified a lack of trust, limited digital literacy, internet connectivity issues, fear of hidden fees, and a cultural preference for cash as factors making some people reluctant to adopt digital payment solutions.
To make Nigeria’s financial system remain both efficient and inclusive, he suggested a commitment to providing a user-friendly mobile app that offers fast, secure, and affordable.
