The Nigeria Inter-Bank Settlement System (NIBSS) is pushing for wider adoption of QR codes as a cash alternative for small-value transactions following improvements to its Nigeria Quick Response (NQR) payment platform. The payment switch has enhanced the speed of QR transactions by removing separate fee queries while strengthening security with advanced authentication features.
As part of efforts to drive adoption, NIBSS has partnered with the Lagos State government to test the viability of QR codes for bill payments. Premier Oiwoh, Chief Executive Officer of NIBSS, disclosed that over 750,000 bills in Lagos were paid through QR codes within the first week of deployment. The system has also introduced a USSD payment option for feature phones to expand accessibility.
QR code payments closely mimic cash transactions as they are affordable, fast, and allow for instant reversals. Users must scan the code using their banking app, adding an extra layer of security. According to a report by Juniper Research, global QR code payment transactions are projected to rise by 50% in the next four years, reaching $8 trillion by 2029.
To boost adoption, NIBSS has secured partnerships with banks such as Sterling, UBA, and Providus. First Bank has integrated QR code payments into the homepage of its mobile app, a move that has significantly increased usage. Sterling Bank has also introduced a self-onboarding app for merchants, allowing them to generate and print QR codes instantly.
To address concerns around payment confirmations, Providus Bank has introduced receipt printing for QR transactions, while NIBSS is working on the NQR Soundbox, which provides audio notifications for successful payments. A demonstration of the device showed that it could announce transactions in English and store transaction logs for reconciliation. If widely adopted, QR payments could transform the digital payment landscape by offering merchants a more secure and efficient alternative to cash.