Photo L-R: Temidayo Adekanye, Chief Risk Officer, Nigeria Inter-Bank Settlement System (NIBSS); Christabel Onyejekwe, Executive Director, Business Development, NIBSS; Premier Oiwoh, Managing Director/CEO, NIBSS and Niyi Ajao, Deputy Managing Director, NIBSS at the official launch of the Nigeria Quick Response (NQR) payment solution powered by NIBSS on Monday 15th, March 2021 in Lagos.
The Deputy Governor of the Central Bank of Nigeria (CBN) Financial System Stability, Aisha Ahmad who also doubles as the chairman of Nigeria Interbank Settlement System (NIBSS) alongside bank chief executives have launched the NQR (New Quick Response); payment solution that enables contactless transactions through the use of a QR code.
The innovative payment platform is being implemented on behalf of all financial service providers. The New Quick Response code solution offers a robust platform that delivers instant value for P2B and P2P transactions by simply scanning to pay.
It is a solution that will unify the available closed QR Code schemes in the country for consistent user experience and accelerated digital adoption. This Payment Solution designed to be “low cost” for merchants would see shoppers scan a QR code generated by a seller to pay for an item.
Each code will have unique details containing the information relating to the transaction and would link with a customer’s Banking App, already enabled on their smartphone.
Delivering the keynote address, Aisha Ahmad said the Nigerian payment system has evolved significantly over the past decade with its widespread technological advancement supported by deliberate enabling regulations which have facilitated the growth and proliferation of innovative financial products, services, and channels.
She pointed out that Nigeria has leapfrogged several advanced economies in the area of payment and financial innovation. According to her, the Covid-19 pandemic has also accentuated the situation with more opportunities for financial institutions and other players within the payment ecosystem to innovate and provide more options for payment and settlements.
“Globally there has been a major shift to contactless payment options with a number of countries like China, Thailand, Malaysia, India, Singapore, Ghana, and Nigeria pioneering groundbreaking solutions in this regard. Many of these countries have developed common QR standards to facilitate the development of a robust contactless payment system.”
CBN’s Framework for QR Code
The deputy governor said the CBN in response to this market development released the framework for QR code payment in January 2021 as part of efforts to further deepen the adoption of electronic payment in the country. The framework stipulates acceptable standards for implementation and interoperability roles and responsibilities of participants for QR code schemes in the Nigerian payment systems amongst others.
While highlighting the benefits of the new product she said, the NQR payment solution coming soon after the QR framework will breach an important gap within Nigerian’s fast-evolving payment landscape.
“It unifies QR code schemes across the country, offers some robust payment platform that delivers instant value for P2B, and B2B transactions offer flexible payment options for customers and a much-improved customer experience. The scheme will also allow a more convenient and efficient integration process leveraging API.”
She further assured merchants of the safety of the system disclosing that the NQR will provide merchants with a centralized QR code management system.
All of this is expected to reduce the cost of financial services, deepen financial inclusion and grow economic and business activities to increase payment activities at the merchant outlets.
In line with global best practice, the NQR payment solution is based on the EMB QR code specification who provides some comfort on the security of the platform and its flexibility and customizability ensuring that the solution is incorruptible and internationally recognized and accepted. Whilst commending NIBSS for this trailblazing achievement.
She reiterated the CBN’s commitment as a regulator of the banking and payment system to provide and enable a regulatory environment that ensures interoperability, proper market conduct, and continued innovation within the financial services ecosystem to foster healthy competition, high-quality services, and financial inclusion.
“The bank recently released the regulatory framework for sandbox operations in Nigeria and the guidelines of open banking with the objective to open up the terrain for more transformational ideas and encourage more start-up companies to grow and contribute to the overall economic development in Nigeria.
Ahmad enjoined critical stakeholders in the payment ecosystem to enlighten and educate the public about this innovative platform for enhancing contactless and seamless payment solutions within the Nigerian payment system.
What the Banks CEOs Said
Also speaking on the NQR, the Managing Director and Chief Executive of First Bank, Adesola Adeduntan noted that the evolving of the digital payment space is leading to a lower cost of transaction which will eventually be passed on to customers.
On his part, the Managing Director and Chief Executive of Zenith Bank, Ebenezer Onyeagwu noted that the NQR code is interoperable and it is a straightforward process in terms of connection to banks. “It is faster in terms of process of payment and when compared to conventional cards. It is cheaper and faster and cost effective for everyone.
Also, Managing Director and Chief Executive of Access Bank, Herbert Wigwe noted that “we are getting to a point where electronic payment are truly safer and better than cards this means that customers funds are safer.”
He furthered that it will reduce importation of POS terminals which are currently being imported from china and other countries, adding that if adopted, “it will reduce the demand thus we no longer need foreign exchange to import devices. Whilst card remain a global solution, the NQR is homegrown and showcases the Nigerian talent in tech development in payment space.”
Premier Oiwoh’s Vision of Payment Landscape
On his part, the CEO of NIBSS, Mr. Premier Oiwoh said, “with more people being able to pay for goods and services with just their smartphones, the NQR Payment is about re-creating the Nigerian payment experience whilst deepening financial inclusion in the country. Digital transactions supported through the NQR code payments will promote and enhance consumer payment experience while driving growth for business owners.”
This payment solution made available by Banks and other financial institutions has been hailed by financial experts as the ‘Future of Payments’; it will unlock a wealth of extra benefits that will transform the way Nigerians choose to pay for goods and services at all levels.
As consumers and merchants’ alike move towards technology-driven solutions, QR Codes are growing increasingly important. Nigeria demonstrates yet again that it has a forward-looking financial services industry, as it drives towards a truly cashless and contactless society with NQR.