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E-payment: CBN introduces new rules to encourage more Nigerians

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The Central Bank of Nigeria (CBN) has said it would introduce new rules in order to encourage more people to use e-payment channels, especially Point of Sale (PoS) machines.

In a statement signed by the CBN Director of Payment System Management Department, Musa Jimoh, the bank said that the use of a single messaging format for PoS transactions was already posing a challenge in introducing the use of pre-authorization as a mode of payment in Nigeria.

Jimoh said the move was part of the bank’s plan to deepen the adoption of various electronic payment options available to users to develop the payment system.

For merchants, the new CBN guide would ensure they obtain the Acquirer Device Validation

“By this directive, all PoS terminal must have the capability for transaction pre-authorization and sales completion. All card issuers are required to build the capability and enable the processes for pre-authorization and sales-completion of transactions. Card schemes are also required to provide online simulators for acquirers and issuers to test their systems, when necessary,” the statement said.

Jimoh explained that although the new rule took immediate effect, the deadline for compliance is slated for July 31, 2020. After the deadline, non-compliant merchants risk sanctions as stated by the apex bank.

Data obtained from the Nigeria Interbank Settlement System (NIBSS) recorded that the total volumes of PoS transactions for 2017 stood at 146.3 million which was worth N1.4 trillion. Also in 2018, 285.9 million transactions were recorded which is worth N2.3 trillion. Finally, 187.7 million POS transactions were recorded for six months-January to June in 2019 worth N1.4 trillion.

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