Nigeria Inter-Bank Settlement System (NIBSS) enhances Nigeria Quick Response (NQR) payment system to drive Nigeria’s cashless economy, strengthening Nigeria’s push toward a cashless economy.
The upgrade aims to make digital transactions more seamless, secure, and widely accessible for businesses and everyday users.
The system now supports both Person-to-Person (P2P) and Entity-to-Person (E2P) payments, broadening its applicability.
The Nigeria Quick Response (NQR) payment system is a QR code-based payment solution developed by NIBSS to facilitate seamless, instant transactions between individuals and businesses.
Launched in March 2021, NQR was designed to unify the country’s QR payment landscape, providing a cost-effective and efficient alternative to cash transactions. The enhanced NQR system now offers instant payment processing, ensuring immediate settlement for merchants and consumers.
According to Nairametrics, Premier Oiwoh, MD/CEO of NIBSS stated that the goal is to enable anyone, including street vendors, to receive digital payments through QR codes. Users simply scan a merchant’s QR code, which redirects them to their bank or mobile wallet for seamless transactions.
Security is also a major focus, with the system designed to minimise fraud risks while maintaining efficiency. By reducing cash dependency, NQR not only increases convenience but also enhances safety by lowering the risks associated with carrying physical money.
In August 2024, the Nigeria Inter-Bank Settlement System (NIBSS) partnered with Zone, a blockchain payment infrastructure provider, to integrate Payment Terminal Service Aggregator (PTSA) functions into Zone’s blockchain network.
This collaboration aims to enhance interoperability across the Point-of-Sale (PoS) payment value chain, allowing institutions on the Zone blockchain to route transactions directly between each other, bypassing traditional intermediaries.
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Fintech space in Nigeria
Nigeria’s fintech ecosystem is highly competitive, with platforms like Opay, Flutterwave, and Paystack dominating digital payments. While these services facilitate transactions via mobile wallets, bank transfers, and online payments, the NQR system stands out due to its direct integration with banks and lower transaction fees.
Additionally, the affordability of NQR’s transaction fees makes it more appealing to small businesses compared to global QR-based payment services. The new pricing structure for NQR will officially take effect on March 1, 2025, further positioning it as a cost-effective solution for businesses of all sizes.
Despite its advantages, NQR faces hurdles in widespread adoption. Many small-scale vendors and businesses, especially in rural areas, still rely heavily on cash transactions. Continuous education and incentives will be key to encouraging merchants and consumers to embrace QR-based payments.
To further drive adoption, banks and financial institutions must promote NQR’s benefits and integrate it into their digital offerings. Additionally, ensuring security and fraud prevention will be crucial for sustaining trust in the system.
As Nigeria continues its journey toward a fully cashless economy, the enhanced NQR system represents a major step in transforming digital payments. By offering an accessible, secure, and cost-effective solution, it has the potential to redefine how businesses and consumers transact across the country.
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