Mastercard is asserting itself as a provider of effective solutions to assist Nigeria’s approximately 40 million small businesses adopt contactless payment options, facilitating easier growth. Traditional payment acceptance terminals have been deemed too expensive for SMEs in the country, hindering their development. Mastercard asserts that its contactless options will significantly lower the cost of payment acceptance devices, making it financially viable for SMEs to embrace technology. This enables even small businesses to use their low-cost smartphones for secure and easy payments, utilizing QR codes, Payment Links, and Contactless payments, all equipped with Mastercard’s secure payment acceptance technology.
Recognizing the burgeoning growth of the Nigerian payment market, the Central Bank of Nigeria (CBN) took a significant step in shaping the future of payments by introducing the Framework for Quick Response (QR) Code Payment in January 2021. This was followed by releasing the Exposure Draft of the CBN Guidelines for Contactless Payment in Nigeria in October 2022. These guidelines define contactless payment as completing financial transactions without physical contact between the payer and the acquiring device(s), enabling secure payments using Near Field Communication (NFC), Radio Frequency, or QR Codes.
Mastercard states that it is taking this initiative to lead Nigeria’s payment transformation journey to connect 1 billion individuals and 50 million micro and small merchants to the digital economy by 2025. The contactless payment solutions provided to SMEs will empower them to accept card payments easily and cost-effectively, using “tap on phone,” “QR Pay by link,” and “Payment link” on their smartphones.
Kari Tukur, Vice-President, Customer Solutions, East and West Africa at Mastercard, unveiled the plan in a recent media chat in Lagos, stating, “As we navigate the evolving Nigeria payment landscape, Mastercard is proud to launch its contactless payment solutions. We understand the importance of seamless, secure, and cost-effective digital payment solutions, particularly for small businesses and consumers. We are determined to support and accelerate the adoption of innovative payment methods, ultimately fostering financial inclusion and economic growth in Nigeria. We’re committed to making a digitally inclusive future a reality for all.”
For businesses, QR code payments offer a compelling way to process payments without additional hardware. Customers can set up QR code payments on their smartphones, making transactions swift and convenient. Contactless payments enhance the checkout experience by allowing customers to skip using cash, swipe cards, or enter PINs. Instead, they can tap their card against the terminal, in this case, their mobile phone, resulting in smoother transactions. The Near Field Communication (NFC) technology built into contactless cards ensures seamless payment processing, saving time for business owners and providing several benefits to consumers, including convenience, speed, security, and accessibility, while minimizing the risks associated with cash payments.
