Eighty % – 80% of pharmacies within the nation pay for items digitally, with 56.8% utilizing point-of-sale (POS) programs and financial institution transfers, and 32.9% counting on direct financial institution transfers.
The report, revealed by cost firm Moniepoint, titled Inside Nigeria’s Community Pharmacies, highlights the growing shift towards digital funds in Nigeria’s pharmacy sector, particularly in response to the 2023 money crunch that disrupted cash-based transactions.
The adoption of digital funds has reworked the way in which pharmacies function, permitting them to boost customer support, construct stronger provider relationships, and enhance monetary administration.
The report additionally particulars how 56.8% of pharmacies pay for items utilizing point-of-sale (PoS) programs and financial institution transfers, whereas 32.9% depend on direct financial institution transfers.
“Only 5.2% of pharmacies nonetheless use money, whereas 3.2% are exploring different cost strategies, and 1.9% make the most of credit score services. “This shift to digital funds helps pharmacies preserve higher relationships with suppliers and keep away from the disruptions that may come up from failed or delayed money transactions.
Digital funds in buyer transactions
Beyond provider relationships, the report highlights that “45.39% of Nigerian pharmacy customers prefer to pay using digital methods, such as PoS machines or bank transfers, while only 7.69% of customers rely solely on cash.”
The remaining 46.92% use a mixture of each money and digital cost strategies. The desire for digital funds has grown considerably, pushed partly by the 2023 money scarcity, which made money transactions much less dependable.
For neighborhood pharmacies, this shift represents a chance to boost buyer satisfaction by providing seamless cost choices. Medplus, one in all Nigeria’s largest pharmacy chains, serves over 2,000 clients each day, a lot of whom now favor digital funds.
According to Ife Bakare, Head of Strategy and Innovation at Medplus, the advance in digital cost companies has been noticeable, however there may be nonetheless room for additional enhancement.
“Reliable digital payments can strengthen relationships with both new and returning customers,” Bakare mentioned.
Supplier relationships and digital funds
The report emphasizes that the adoption of digital funds is not only bettering buyer transactions, but in addition streamlining the availability chain for pharmacies.
Digital funds have diminished the danger of transaction failures, which might result in provide disruptions.
Chi, the founding father of Dexta Pharmacy, recounted a detailed name early in her enterprise when a money transaction failure virtually price her a trusted provider.
“We typically deal with large sums of money, so carrying cash isn’t practical. After a failed cash payment, my supplier threatened not to work with me again. Since then, I’ve switched to paying with my Moniepoint account, and it has helped maintain trust,” she mentioned.
Limited entry to funding
Despite the advantages of digital funds, pharmacies in Nigeria nonetheless face challenges in securing funding.
According to the report, “Only 17.2% of pharmacies have obtained loans from banks or financial institutions, and 8.2 per cent get loans from cooperatives. Other sources of funding include gifts from family and friends (7.2 per cent), grants from government or other bodies (3.1 per cent), crowdfunding (2.4 per cent), and private equity and venture capital taking 2.1 per cent.”
Pharmacies that undertake digital funds, nevertheless, are in a position to construct stronger monetary information, which might enhance their probabilities of securing loans sooner or later.
As Nigeria’s healthcare sector continues to modernize, digital funds will play an more and more important function in serving to pharmacies strengthen operations, handle provide chains, and enhance customer support.
What You Should Know
⦁ Nigerian pharmacies are most lively on Mondays and Saturdays in 75% of Nigerian states
⦁ According to the Pharmaceutical Society of Nigeria, there are 25,000 registered pharmacies and patent medication shops in Nigeria. Many of them are situated in communities with out functioning healthcare centres, serving to to fill an vital hole.
⦁ Beyond distant areas, neighborhood pharmacies are additionally vital in city areas. You can discover them in standalone shops or malls, the place they assist present entry to medicine prescribed by docs.
⦁ 10.17% of Nigeria’s neighborhood pharmacies & medication distributors are in Lagos
