The Nigeria Inter-Bank Settlement System (NIBSS) is pushing QR codes as an alternative to cash for small-value transactions, improving its Nigeria Quick Response (NQR) payment platform.
Why it matters
QR payments offer a low-cost, fast, and secure way to handle transactions, mimicking the convenience of cash while reducing reliance on physical currency.
What’s new
- NIBSS engineers have enhanced QR payment speed by eliminating separate fee queries and bolstered security with stronger authentication measures.
- The Lagos State government is testing QR payments for bill settlements, with 750,000 bills paid in the first week.
- NIBSS has also launched a USSD product for feature phones to expand accessibility.
Between the lines
Adoption hinges on seamless merchant integration. Banks are taking steps to drive usage:
- First Bank placed NQR payments on the homepage of its mobile app, boosting transactions.
- Sterling Bank built a self-onboarding app for merchants to generate QR codes and print payment stickers, mirroring Alipay’s approach in China.
The big picture
QR payments are gaining global traction, with transactions expected to hit $8 trillion by 2029, per Juniper Research. In Nigeria, ensuring transaction confirmations is key:
- Providus Bank introduced receipt printing for QR transactions.
- NIBSS is developing the NQR Soundbox, which audibly confirms payments, similar to India’s Paytm devices that drove digital adoption among small merchants.
Source: TechCabal
