CBN Indicates Readiness to Drive Emerging Payment Systems
By Adedapo Adesanya
With emerging payment systems, such as Request for Payment (RfP) and deployment of contactless solutions likely to see equally strong adoption in Nigeria, the Central Bank of Nigeria (CBN) has advanced plans to tap into budding technologies.
This was contained in a document titled Nigeria Payment System Vision (PSV) 2025, which includes provisions for regulating the industry as well as a review of the core payments infrastructure and central switching platform to ensure continued capability to meet payment demands.
Instant payments have created a fundamental shift in the adoption of electronic payments in many countries, and Nigeria, as an early adopter of real-time payment methods, has experienced strong growth in this area.
The CBN noted that with the continued flourishing of the USSD payments, it would continue to partner with the Nigerian Communication Commission (NCC) to further drive down the cost of USSD messaging, making this solution even more attractive.
It noted that it was monitoring the growing usage of Quick Response (QR) Codes in Asia, banking on the continued spread of smartphone usage.
“As smartphones become more available and affordable, adoption of QR code technology will increase,” the document said.
CBN added that it would initiate a review of the core payments infrastructure and central switching platform to ensure continued capability to meet payments demand.
The apex bank said that through the PSV 2025, it would focus on a regulatory regime that disaggregates the payments value chain through the adoption of open banking. This will contribute to a more vibrant payments sector – one where financial institutions and payments service providers will innovate, collaborate and compete to bring new services to the market.
It added that it would review the need for new clearing and settlement infrastructure driven by the deployment of a fiat digital currency and the development of potential national standards for contactless payment initiation.
The PSV 2025 was developed with consideration for global trends and new practices in payments that are relevant for the Nigerian market and other spheres where Nigeria plays a role in international financial flows and payments, regionally and globally.