Clement Nwoji
The launch of the NQR Code on March 16, 2021, by the Nigeria Inter-Bank Settlement System Plc (NIBSS) in partnership with the Nigeria Financial Industry, constitutes one of the seamless non-contact digital means of financial transactions meant not only to deepen the cashless economy but also to further enhance financial stability in Nigeria. It is not surprising then why banks, Money Market Operators, other financial institutions, merchants, payment service solution providers and forward-looking individuals have since embraced it because of its sterling qualities and advantages.
The security and safety of using the NQR payment option in financial transactions stem from the fact that as an indigenous secure QR-Code-Based payments and collections solution, it is powered by NIBSS on behalf of the
Financial Services Industry while being regulated by the Central Bank of Nigeria (CBN), which released the operational guidelines/framework in January 2021 ahead of the launch on March 15, 2021. NQR payment solution is primarily designed for merchants and customers to facilitate hitch-free receipts and payments for goods and services in Nigeria as well as promoting P2P payment.
According to NIBSS, the account-based transaction platform unifies all available closed QR code schemes in the country for consistent user experience and acceleration of digital adoption. It is easier, better and simpler to effect contactless transactions with the NQR. In addition, this platform gives instant time value for money for merchants.
Historical information affirmed that the reliability, safety and trust reposed on NIBSS in the operation of the NQR platform on behalf of the financial sector is guaranteed by its long-standing successes in secured digital technology. Incorporated in 1993 and commenced operation in June 1994, NIBSS has operational experience of almost three decades and “has put in place modern world class infrastructures for handling Inter Bank payments to ensure Interoperability and Interconnectivity across the Nigerian Payment Industry. Further, “NIBSS operation is supported with the best Information, Communication and Technology infrastructure for Automated Online operations as well as 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.”
The requirement for an individual, be it a merchant or customer to effect transactions using the NQR payment solution is a smart phone supported by internet connectivity to Scan and Pay. NQR is also available on USSD for feature phone users. As a merchant, there are three easy steps to enroll; contact your bank to register, generate your unique NQR code and present the Code to customers to Scan and Pay. This gives you instant value.
To pay with NQR, there are four simple steps to get started: Login into your mobile Banking app on your smartphone, locate and click on “Payments” and select ‘QR Payment”, then Scan the QR Code provided by the merchant. After confirming the beneficiary’s name and amount, input your PIN and the merchant receives value instantly. In addition to merchant and customer transactions, NQR payment is useful in paying bills like school fees etc and for person- to- person (P2P) money transfers; the procedure follows the same simple pattern/process.
The attraction to use NQR is further hinged on the least transaction cost users incur. In addition, with the use of NQR, merchants/sellers and customers/buyers of goods and services are afforded many advantages over the use of other e-payment platforms. Some of the advantages include zero cost of on-boarding the platform, immediate notification on transactions made, absence of dispute on transactions effected as reconciliation is instantaneous which gives instant time value for money for business owners to enable them plan efficiently, and execute financial decisions that translates to business growth.
The Managing Director/CEO of the NIBSS, Premier Oiwoh has once noted that the essence of the NQR Solution is to deepen financial inclusion and further stimulate the cashless Society. For him, the use of NQR code is not restricted to the educated and urban dwellers. It also serves the needs of the uneducated and rural dwellers in as much as the person can operate his or her Banks mobile App. or can use the USSD option. According to Oiwoh, some of the unique attributes of NQR is the simplicity. It is available across all the Banks and the ability for one to maintain secrecy of his or her account number since all that is required is to scan the NQR code, authenticate, pay and the receiver gets instant value.
Speaking at the official launch of the NQR Payment Solution in March 2021, he emphasised that this platform will reduce cost of access to financial services to the banking populace, it will deepen and further drive financial inclusion. He added that the NQR Payment Solution is based on the EMV® QR Code Specification with high security, flexibility and customizability. It is API-driven and provides local and global interoperability in line with the goal to ensure that the Payment Solution is internationally recognised and accepted.
To guarantee user friendly and security, the CBN provided the regulatory guidance for the operation of NQR code through its framework ahead of the launch. The apex bank ensured the adoption of appropriate QR code standards for safe and efficient payments system in Nigeria.
The emphasis by the CBN that “QR Code Payments implementation in Nigeria shall support account, wallet, card and token-based QR Code Operations is of particular interest in the regulatory guideline.
The takeaway from this, is the assurance that apart from laying the security and safety foundations for the seamless and minimal cost in the use of NQR code, the CBN constantly keeps an eagle eye on the operations of the platform to ensure that the objectives are not derailed.
Clement Nwoji is a business, public affairs analyst based in Abuja
