The Nigeria Inter-Bank Settlement System Plc (NIBSS) has just launched a digital platform – Nigeria Quick Response (NQR) merchant app.
According to NIBSS, the new payment solution will allow users – merchants, businesses, and customers residing in the country to make or receive payments using QR codes.
Hosted by Frank Edoho, the hybrid launch event (a mix of virtual and physical) for the NQR merchant app was attended by key stakeholders in the sector, including Managing Directors of mobile deposit banks like Ecobank, First Bank, amongst others.
Although long overdue, the latest development is coming amidst a boost in terms of digital adoption in the nation’s financial sector.
More so, the NQR merchant app’s release suggests that the government is fully aware of the ongoing shift in the financial sector and will not hesitate to leverage on the driving factor.
Also, several stakeholders and industry experts who attended the event believe that the initiative would transform Nigeria’s payment ecosystem.
Additionally, it was further opined that the new platform would play a vital role in improving areas like micropayments; further impacting both merchants and businesses positively and significantly.
With that said, what then should you know about the new NQR payment solution?
NQR is an initiative powered by NIBSS
One of the objectives of NIBSS is to accelerate the financial services space with transformational technologies and innovations. As such, it is not out of place to power this initiative.
While NIBSS is also very much in charge of online transactions in Nigeria; providing a platform that accommodates all stakeholders is highly essential.
Here, as earlier stated, the NQR platform will deliver an instant value for P2B (Payers to Business) and P2P (Payers to Payers), allow merchants, businesses, and customers to enjoy the ease of transactions.
How does this platform then work? You may ask
To make any payment on the platform, the NQR merchant app provides a ‘low-cost’ method by which merchants can generate a QR code which can then be used by shoppers to make payment.
Once generated, the unique code will allow shoppers to access information relating to the particular transaction.
It would automatically link it to the customer’s banking app, which must have been enabled on their smartphones already.
More notably, the NQR payment solution is a flexible payment solution that uses an integrated process that leverages APIs; enhances the scanning to pay mode, fast-track the process for receiving money in real-time, and facilitates sharp and instantaneous payments.
“The NQR initiative is an attempt to deepen financial inclusion in Nigeria”
Speaking on the need to launch the new initiative, the CEO of NIBSS, Mr. Premier Oiwoh, said that the NQR would recreate the Nigeria payment experience.
“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,” he added.
Not left out in the discussion, the Deputy Managing Director of NIBSS, Mr. Niyi Ajao, said the NQR payment solution would reduce the cost of execution on the merchants’ part while generally improving business activities in the country and deepening financial inclusion.
Further clarifying his statement, Mr. Ajao revealed that the nation is currently making giant strides globally when it comes to establishing a robust payment system.
He added that Nigeria is often described as a globally competitive and highly innovative country, especially considering its robust fintech solutions.
The NQR initiative doubles as a unification scheme for service providers
One of the major highlights of the NQR payment initiative is the ability to unify financial service providers; closing the gap left open due to operating in isolation by leveraging on the country’s QR Code scheme.
In her description, the Chairman of the Nigeria Inter-Bank Settlement System Plc, Mrs Aisha Ahmad, said that the launch of NQR is a pacesetter for the financial services sector, adding that it would foster innovation.
Buttressing the established point, Ahmad, who is also the Deputy Governor, Financial System Stability of the Central Bank of Nigeria, said the CBN remains committed to providing an enabling environment for the financial services sector’s inter-operability.
Now that the adoption rate of technology-driven financial solutions is on the high side, the need for QR codes is also on the rise.
Other highlights of the new platform include the following:
- Viable alternative payment option
- Complementary to other existing payment platforms and channels
- Will Increase velocity of P2B and P2P solutions
- Robust ecosystem for payments
- Convenient and accessible to customers and merchants
- A faster and secure form of payment
- A laudable idea for the financial services industry in Nigeria
What else you should know about NIBSS
NIBSS was incorporated in 1993 and is owned by all licensed banks, including the Central Bank of Nigeria (CBN). It commenced operations in June 1994.
NIBSS has put modern world-class infrastructures in place for handling inter-bank payments to remove potential bottlenecks associated with inter-bank funds transfer and settlement.
NIBSS’ operation is supported with the best Information, Communication, and Technology infrastructure for Automated Online operations and effective information and data transmission security practices to deliver world-class payment/settlement services.
Operational and Credit Risks in funds transfer across financial institutions are adequately mitigated by NIBSS operations.