By Chinenye Anuforo
Carviva Technologies Limited has come up with an innovative digital fuel payment alternatives solution to solve the problem associated with cash payments and to address the connectivity issues that affect the use of Point of Sales (POS) terminals for transactions in filling stations across Nigeria.
Tagged Carviva Fuel Wallet, it is the first step in revolutionising merchant-customer transaction in Nigeria’s petroleum energy business ecosystem. The solution is first of its kind mobile phone virtual wallet and fully digitized OMNI channel for millions of car owners and filling stations across Nigeria.
With the solution, car owners do not need to carry cash or debit cards to buy fuel or gas in filling stations once they have a valid and active mobile phone number. A car owner can buy fuel via USSD or other OMNI channels, Carviva issues e-Fuel token and security keys; the car owner receives e-fuel token notification (via email or SMS); drives to participating filling station, and the attendant at participating filling station dispenses Fuel.
Speaking on the solution, Ayodeji Subair, Founder & CEO, Carviva Technologies Limited, said the fuel wallet was aimed at solving the ‘cash’ challenge often encountered by customers at fuel stations. “It is simple, smart and a secure cashless solution for buying fuel and gas at any time and in any location in the country,’’ he said.
According to Subair, a seasoned Telecoms Management, Techpreneur and Digital product strategy professional with 25 years experience spanning CORE, EDGE, CDN, Intelligent and Interconnect Networks, “Carviva Fuel Wallet is the future of digital fuel payments in Nigeria and Africa. CARVIVA Fuel Wallet is a cashless and cardless solution that effectively turns every mobile phone number into a virtual wallet for buying fuel and gas at filling stations.
“Our idea is simple. We want car owners to buy fuel and gas at any participating filling station without the need of a bank debit card or cash. Our innovative solution is the first of its kind mobile phone virtual wallet and fully digitized OMNI channel for millions of car owners and filling stations across Nigeria. It’s simple, safe and secure channel that reduces or eliminates cash handling by car owners and filling stations in Nigeria.
“Our partnership also brings cross-selling opportunities of telematic devices and genuine spare parts at our participating filling station outlets. Our API first approach implies that Fuel Wallet can easily be extended to new digital channels to drive increased sales, fuel volume and customer base for our partners.
“Cash payment for fuel is often cumbersome and insecure. Car owners and filling stations want convenience, but car owners are sometimes reluctant to use POS and there are limited channels to buy fuel without card or POS,’’ he explained.
According to him, with the OMNI and cashless wallet solution, every mobile phone effectively becomes a virtual wallet for buying petrol, diesel or gas at filling stations.
The solution also captures an addressable cashless user base that is twice that of POS base. With the solution’s USSD channel, fuel can be paid for without internet or data issues affecting POS.
“It is cashless, so it reduces cash handling and associated cash handling costs and reconciliation. Filling stations will have direct access to real customer data. Also, the ubiquitous USSD easily extends cashless payment coverage to more cities than POS. It is cheaper as Fuel wallet device activation is significantly less compared to POS cost,’’ he explained.
Currently, Nigerians spend about N2.2trn on PMS yearly. Although majority of the populace use cash as preferred fuel payment method, cash handling comes with additional cost and insecurity.
While the use of bank debit cards is popular and are accepted at filling stations, the use of a dedicated fuel card is only available at over 500 stations, one of the major downstream players. Again, not all bank account holders have debit cards. Besides, debit cards and POS relies on data and internet which sometimes fail due to network or connectivity issues.
Subair said the Carviva Fuel Wallet comes with many advantages for car owners. “With our OMNI channel approach, people will buy fuel on the go with or without internet as the solution is also available via USSD; it is secure, it gives peace of mind and safety by eliminating risks associated with cash. It is cardless, hence, car owners can buy fuel without debit card or physical POS.’’
Already, the fuel wallet is being test-run with a major downstream player and will be accepted at over 22+ cities nationwide. The Carviva Fuel Wallet solution deployment is planned for commercial launch next month ahead of the Christmas holidays.