As different countries in the world continue to embrace digital innovations and cutting-edge mobile services, effectively understanding the effects and benefits of 5G is very relevant.
The 5G network is a step forward from mobile 4G, and it comes with a lot of upgrades from improved speed to increased bandwidth, and greater device capacity, among other things.
The Nigerian Communications Commission, NCC, has revealed plans to develop a multi-sectoral policy framework for the adoption of 5G in the country with the first non-commercial proof-of-concept trial conducted by telecom giant MTN in 2019; Therefore, the social and economic benefits that is most likely to come with it’s adoption are expected to be huge, especially because a lot of businesses and activities of entrepreneurs and the government have embraced the internet and are now providing their services online.
As our world becomes more connected than ever, it is only necessary to constantly improve in mobile technology. 5G technology has the potential to affect mobile usage in a number of ways, resulting in faster downloads, more functionality, and better mobile experiences.
It is estimated that the 5G network will cover 40% of the world by 2024 and will handle 25% of all mobile traffic.
Furthermore, it has the potential to reshape payment processing in Nigeria, providing payment service providers with access to new solutions that will expand their channels (ATMs, Mobile Banking, Unstructured Supplementary Service Data (USSD), Internet Banking and others). This is because technology is expected to play a huge role in bridging the financial inclusion gap in the country.
Its sensors will enable high connectivity with customers’ devices based on the environmental conditions in which they live. With the establishment of this innovation, merchants, banks, and fintech companies will gain flexibility to enhance customer interaction.
With lower response time and faster speeds, businesses will be able to deliver the value and convenience consumers need while continuing to provide higher levels of security by expanding biometric security measures along with protecting consumer passwords. With an open mind to this, we can make better use of future opportunities as experts around the world believe that 5G biometric technologies will be more efficient and accurate in securing individual financial data.
Compared to 4G, 5G offers a whole new level of data transfer speed, with multiple devices connected reliably at the same time. Customer devices do not have to wait for base stations from financial institutions to allocate resources to process their various transactions; But transmission can be started immediately thanks to the multi-access analog fountain code technology built into the 5G air interface.
Also, many transaction errors can be avoided by reducing the time it takes for signals to reach their destinations.
Data shows that many consumers prefer mobile payment technology over cash. And 77% believe that digital wallets are a more convenient way to make payments, and thanks to 5G, contactless payments should become more prevalent in the coming years for on-demand purchases.
For users of e-wallets, this means that the speed and security of transactions can be greatly enhanced.
For payment technology, 5G will be an excellent enabler for mobile transactions if the country’s ICT, and ICT infrastructure is able to meet the growing demand for connectivity. The need for all stakeholders to work collaboratively towards achieving a highly desirable digital economy is essential in Nigeria as well as for transformation to effectively take it’s course in the country.
While digital transactions are great, they come with challenges that include cost and cybercrime as well as with many parts of the nation that still lack basic communications infrastructure that could threaten the build for financial inclusion.
However, despite the uncertainty about the stable implementation of the 5G network in Nigeria, the importance of preparing for the future, so that we can make better use of future opportunities, should not be underestimated.