The Central Bank of Nigeria (CBN) has licenced some entities that would smoothen the implementation of the Cashless Policy across the Payments System.
The licenced entities included 26 Mobile Money Operators (MMOs), 10 Super Agents, 21 Payment Terminal Service Providers(PTSP), 21 Payment Solution Service Providers (PSSP), 4 Third Party Processors, 9 Switches and 5 Non-Bank Acquirers.
This is coming as the CBN has braced itself for the new Cashless regime in the six States and the Federal Capital Territory (FCT).
Sam Okojere, director, payments system management department/Chairman of NeFF disclosed this on the second 2019 general meeting of the Nigeria Electronic Fraud Forum held in Lagos at the weekend.
As evidenced by the NIBSS second quarter fraud report of 2019, he said attempted fraud volume decreased by 47.28 percent from first quarter figures, while Web, ATM and Mobile remain the usual suspects to be used by fraudsters.
He noted the growth in the volume of transactions that occurred in 2012 against 2018, following the Cashless Policy re-introduction and increase in usage of electronic transactions.
Consequently, transactions on instant payments grew from 4 million in 2012 to 729m in 2018, transactions on PoS from 2.5 million in 2012 to 285 million in 2018, and transactions on Mobile Inter-Scheme grew from 2,200 in 2012 to 15 million in 2018.
Okojere said there is a likelihood of continued increase in electronic transactions and corresponding potential upsurge in electronic fraud, in spite of concerted and collective efforts to check fraud in the country.
“It is necessary to review and strengthen the existing rules and enact new regulations to mitigate fraud risks in the Payment system. Taming fraud will continue to be a focus for the Forum, as we know the impact fraud has in diminishing trust which is an essential ingredient in building an internationally recognized and nationally utilized payments system.
“We remain committed in ensuring that the Nigerian Payment System is not only easy to use, but also reliable and trustworthy,” he said.
He said Payment System stakeholders need more than ever to walk the very fine line of doing everything in their power to help prevent fraudulent transactions and protect their customers, while not being overly cautious, leading to declining legitimate transactions, through false positives.
“We have altogether nine applications for payment service banks and out of that three were granted approval-in-principle, over time others will get”.
The regulator last week Wednesday issued Approvals-in-Principle (AIP) to three Payment Service Banks (PSBs).
On the re-introduction of the cash-less policy, he said there will be no processing fee either under the Cashless Policy or tax on cash-outs done at agent locations in order to encourage financial inclusion in the country.
Furthermore, he said the processing fees will only be applied on withdrawals above the prescribed thresholds.
According to him, intent of the policy is to encourage electronic payments, with the objectives of developing our payments system, as part of the key requirements for achieving the Payments National Vision; whilst reducing the risk and costs associated with already identified high usage of cash.
The Policy prescribed processing fees on daily cash withdrawals and cash deposits that exceed N500,000 for Individuals and N3,000,000 for Corporate bodies. The processing fees prescribed are 3 percent and 5 percent on withdrawals by individuals and corporates respectively while deposits/lodgments are charged by 2 percent and 3 percent also for individuals and corporates.
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