The solution is set to empower businesses to accept card payments in an easy and cost-effective manner, making use of “tap on phone”, “QR Pay by link” and “Payment link” on their smartphones.
Per the press release, the Central Bank of Nigeria (CBN), recognizing the expedited growth of the Nigerian payment market, has taken a significant step in shaping the future of payments with the introduction of the Framework for Quick Response (QR) Code Payment in January 2021, followed by the release of the Exposure Draft of the CBN Guidelines for Contactless Payment in Nigeria in October 2022. The guidelines define contactless payment as “the consummation of financial transactions without physical contact between payer and the acquiring device(s),” enabling secure payments leveraging NFC, radio frequency, or QR codes.
Nigeria has approximately 40 million small businesses, and contactless payment options will make it easier for SMEs to accept payments, enabling further growth. As traditional payment acceptance terminals can be too expensive, Mastercard’s contactless options will help reduce the cost of payment acceptance devices, making it financially feasible for SMEs to adopt this tech. This helps even small businesses use their low-cost smartphones to accept payments safely and easily, by making use of QR codes, payment links, and contactless payments, all pre-equipped with Mastercard’s secure payment acceptance technology.
When commenting on the announcement, company officials advised that Mastercard is proud to launch its contactless payment solutions as it navigates the evolving payments landscape in Nigeria. With an understanding of the importance of simple, secure, and cost-effective digital payment solutions, particularly for SMBs and consumers, the company aims to support and expedite the adoption of innovative payment methods, ultimately fostering financial inclusion and economic growth in Nigeria.
The press release further highlights that for businesses, QR code payments are a compelling way to process payments without the need to invest in additional hardware. Customers can simply set up QR code payments on their smartphones and begin using them. In the case of contactless payments, they help make the checkout experience faster and increasingly convenient for all parties involved, as when a contactless payment system is in place, customers can skip the step of paying with cash or swiping their card and inputting the PIN, and can just tap the card against the terminal, in this case, their mobile phone, making for hassle-free transactions.
What is more, the NFC tech built into contactless cards helps ensure simplified payment processing. Contactless payments save business owners a lot of time by reducing transaction times and making it easier to invest that time in other business-related activities such as inventory management.
As per the announcement information, this technology offers consumers several benefits, including convenience, speed, security, and accessibility. Transactions are processed swiftly, decreasing waiting times, while providing a secure payment method that minimises the risks associated with cash payments. Additionally, the development underscores Mastercard’s commitment to connecting 1 billion individuals and 50 million micro and small merchants to the digital economy by 2025.
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