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CBN Tweaks Quick Response Code Framework to Boost Payment Options
James Emejo in Abuja
The Central Bank of Nigeria (CBN) has amended the Framework for Quick Response (QR) Code Payments to provide additional presentation options for users.
The move seeks to further promote the deployment of innovative products in the Nigerian payment systems.
The apex bank specifically amended Section 3.4 of the framework, which was unveiled in January 2021to include a Consumer-presented mode to the equation.
In the prior guidelines, the central bank said the implementation of QR Code for payments in Nigeria shall be based on the Merchant-presented mode, where merchants present the QR Code for buyers to accept in order to conclude payment transactions specification.
However, the bank in a circular dated July 4, 2022, and addressed to banks, Other Financial Institutions (OFIs) and payment service providers, on the Review of Industry Quick Response (QR) Code Presentation Options, said henceforth, the implementation of QR codes for payments in Nigeria shall be based on either merchant-presented or consumer-presented modes.
The revised document which was posted on the bank’s website was signed by the CBN Director, Payments System Management Department, Mr. Musa Jimoh.
He added that the apex bank would continue to industry monitor developments and issue further guidance as may be appropriate.
Essentially, the consumer-presented mode requires the user to display the QR code dynamically while the merchant then uses a QR code reader to scan the code.
Similarly, the merchant-presented mode involves the merchant displaying the QR code either statically or dynamically, with the consumer using a mobile device to scan the code.
Transacting payments via QR codes is deemed secure as the QR code is merely used to exchange information ensuring that any data which is transferred via the technology is encrypted thus making the payment foolproof and secure.
Also, one of the greatest advantages of using QR codes is that it facilitates instant payment, among other benefits.
The CBN last year unveiled a framework for Quick Response (QR) code payments, directing all issuers, acquirers, switches, processors and other participants in the country to ensure full interoperability of the schemes.
