New Partnership Brings Pension Services to POS Terminals
Awabah, a Nigerian fintech focused on micro-pensions, has partnered with TeamApt, a leading payment solutions provider, to allow informal sector workers to make pension contributions through point-of-sale (POS) terminals. This initiative aims to increase pension penetration in Nigeria, where over 70% of the workforce operates informally and lacks access to retirement savings schemes.
How the Service Works
Under the partnership, users can walk into any TeamApt-enabled POS agent location and deposit funds directly into their Awabah pension account. The process is simple: the agent enters the user's phone number, the user confirms the amount, and the contribution is credited instantly. This eliminates the need for bank accounts or smartphones, making pensions accessible to low-income earners and rural dwellers.
Targeting Nigeria's Informal Sector
According to the National Pension Commission (PenCom), less than 10% of Nigeria's working population is covered by the contributory pension scheme. Awabah's CEO, Uzoma Nwachukwu, stated: 'Our goal is to democratize pension savings. By leveraging TeamApt's extensive agent network, we can reach millions of informal workers who have been excluded from the formal pension system.' TeamApt's network covers over 200,000 agents across Nigeria, providing a ready infrastructure for pension collection.
Impact on Financial Inclusion
This move aligns with the Central Bank of Nigeria's financial inclusion strategy, which aims to reduce the number of unbanked adults. By integrating pension services with everyday payment points, Awabah and TeamApt are creating a seamless savings experience. Industry analysts estimate that this partnership could bring an additional 5 million informal sector workers into the pension system within three years.
Security and Regulation
Contributions are regulated by PenCom, ensuring that funds are safe and managed according to pension laws. Awabah is a licensed pension fund administrator (PFA) for micro-pensions, and TeamApt is a licensed payment service provider. The partnership has received approval from both the Central Bank of Nigeria and PenCom.
Future Prospects
Both companies plan to expand the service to include other financial products, such as savings and insurance. The success of this model could serve as a blueprint for other African countries seeking to extend pension coverage to informal workers.
