Online payment has a great spread all over the world, but definitely, In Sudan online payment has a great effect, so we will discuss in this article some effects and features of online payment in Sudan.
Sudan’s liquidity crisis
Large numbers of shops and car and real estate centres began in Khartoum. The doors of banks were called for POS, which is free of charge to customers because their sales have begun to be adversely affected by the lack of cash available to citizens.
At the beginning of this year, the Central Bank of Sudan imposed a minimum number of point-of-sale devices on each bank, increasing the number of points of sale from 3,500 points to more than 10,000 currently.
Sudan has been facing a liquidity crisis for months because of its weak foreign exchange reserves. The crisis has almost disappeared in the past few months, after the intervention of «Bank of Sudan» and pumped funds to about 38 banks in the country, but the problem still exists.
Customers cannot get more than 2,000 pounds per cardholder, while the Bank of Sudan promises to impose financial sanctions on banks that do not commit to providing cash on a daily basis.
Abdul Rahim Yasin, Director of the National Information Center at the Ministry of Communications and Information Technology, and the Director of eGovernment in Sudan, told Asharq Al Awsat that there has been a significant increase in the number of customers with electronic payment services during the past six months, Citizen’s trust in the banking system and banks.
In 2015, the Central Bank of Sudan launched the “Pay by Mobile” project, followed by a number of electronic payment and e-commerce services, raising the number of bank cardholders to more than 5 million customers, and the number of mobile payment subscribers reached about 6 million in less Of 3 years.
However, the recent liquidity crisis and the inability of banks to meet the needs of citizens of their money, in addition to the lack of cash in ATMs in Sudan have had a negative impact, which led to a lack of confidence of citizens in the banking system and stop them from depositing their money in banks.
Sudan Online Payment Companies
Six Arab and foreign companies working in the technology sector, carrying Saudi, Russian and Polish nationalities, have applied for investment in Sudan. Some estimate the volume of transactions in the electronic payment sector at about 60 billion dollars. Saudi Arabia, which operates electronic payment services in the Kingdom, and is owned by the Saudi sovereign fund.
This comes in conjunction with the announcement of the Prime Minister and Minister of Finance Moataz Moussa, that the thirty-first of December, will be a deadline for the digital transformation in the country, and is not adjustable, directed by state and federal governments to move towards more electronic services.
“Government payments will soon be transferred to e-mail to supplement the e-government program,” said Mohamed Abdel Rahim Yassin, director general of the National Information Center, which runs the eGovernment project in Sudan. “By the end of 2020, traditional transactions will be waived, and the transition from e-government to smart,” he said.
The National Authority for Electronic Authentication at the Ministry of Communications and Information Technology of Sudan announced recently the completion of its technical preparations to launch the electronic signature service, which enhances confidence in electronic transactions and ensure their safety and assess their legal validity between the parties in the direction of the country towards computerization of services.
The reality and challenges of Online payment
The electronic payment in Sudan faces a number of challenges that can be summarized as follows:
- Absence or non-compliance with the legal framework (the last law of electronic transactions issued in 2007).
- Absence of the institutional framework for electronic payment (non-establishment of a National Payments Council).
- Absence of a clear strategic plan, followed by electronic payment governance bodies, dealing with imbalances, and
- resolving outstanding issues among the stakeholders in electronic payment.
- The low level of income of citizens, which reduces the need to deal with the banking system because of the lack of surpluses deposited.
- Most banks offer very traditional banking services and do not offer innovative and attractive banking products to customers.
- The non-deployment of electronic payment systems in important government sectors with large revenues (such as taxes and civil registry – public service pools), or partial application that leads to sometimes distorted practices.
- Poor confidence of citizens in dealing with banks in light of the current liquidity crisis.
- The weakness of the spread of shops that deal with electronic payment.
- Lack of awareness of electronic payment among a large number of citizens.
Online payment methods
There are several electronic payment methods available as follows:
- Bank account.
- Bank cards.
- Electronic/virtual wallet.
- Mobile Money.