Cashless Policy: CBN Moves to Deepen e-Payment With New Rule

• Cashless Policy: CBN Moves to Deepen e-Payment With New Rule

The Central Bank of Nigeria (CBN) is working on new Point of Sale (PoS) rule to deepen electronic payment and enhance its cashless policy.

In a statement signed by Musa Jimoh, the Director, Payment System Management Department, CBN, the apex bank said it has reviewed the messaging format for the PoS machine to ensure more transactions are carried out on the e-payment channel.

In the first six months of 2019, the total transactions performed via PoS rose to 187.7 million valued at N1.4 trillion, up from 146.3 million (worth N1.4 trillion) recorded in 2017 and 285.9 million (N2.3 trillion) achieved in 2018, according to the Nigeria Interbank Settlement System (NIBSS) data.

The rising size of e-payment transactions has prompted the apex bank to deepen electronic channels and broaden its growth.

Jimoh said the apex bank move was part of its commitment to grow Nigerian payment system and improve e-payment adoption across the nation. The director added that the apex bank has identified single messaging format for PoS transactions as an obstacle to the use of pre-authorisation as a mode of payment in Nigeria.

Merchants are now required to obtain Acquirer Device Validation Certification or the applicable testing completion notification from the CBN licenced card schemes.

“By this directive, all PoS terminal must have the capability for transaction pre-authorisation and sales completion. All card issuers are required to build the capability and enable the processes for pre-authorisation 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 circular said.

The CBN added that while the circular take immediate effect, it has a deadline of July 31, 2020 for full compliance.