The Central Bank of Nigeria, CBN has issued the Framework for Quick Response (QR) Code Payments in Nigeria in order to ensure the safety and stability of the Nigerian Financial System.
Quick Response (QR) Codes are a kind of matrix barcode representing information presented as square grids, made up of black squares against a contrasting background, that can be scanned by imaging device, processed and transmitted by appropriate technology.
These codes can be used to present, capture and transmit payments information across payments infrastructure.
The technology further enables the mobile channel to facilitate payments and presents another veritable avenue for promoting electronic payments for micro and small enterprises.
As Highlighted from the latest report by CBN on Framework for Quick Response (QR) Code Payments in Nigeria, the framework will promote the use and adoption of electronic payments and foster innovation in the payments system.
It will also provides regulatory guidance for the operation of QR Code payment services in Nigeria, and it aims to ensure the adoption of appropriate QR code standards for safe and efficient payments services in Nigeria.
The Implementation of QR Code for payments in Nigeria shall be within some specifications.
Here are the QR Code Specifications for Payments in Nigeria:
– QR Code Payments in Nigeria shall be based on the EMV QR Code Specification for Payment Systems;
– The Bank may also approve the implementation of any other QR Code Standard, provided it meets the prescribed security requirements within the framework, demonstrates interoperability with other existing implementation in the industry and/or cost benefits to end-users (merchants and customers);
– QR Code Payments implementation in Nigeria shall support account, wallet, card and token based QR Code Operations;
– 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, those allowed to participate in QR Code payment in Nigeria are:
iii. Issuers (Banks, MMOs and Other Financial Institutions)
iv. Acquirers (Banks, MMOs and Other Financial Institutions)
v. Payments Service Providers.
Furthermore, All issuers, acquirers, switches, processors and other participants in QR payments in Nigeria should ensure full interoperability of QR Code Schemes in Nigeria.