CBN to introduce ‘purchase and cash-back payment’ scheme

as e-transactions rise to N100bn

The Central Bank of Nigeria (CBN) is finalising plans to launch another electronic payment initiative – the ‘purchase and cash-back’ scheme that would enable a bank customer get some cash withdrawals, after making some purchases with his/her card.

Dipo Fatokun, CBN director of banking and payment system department, said in Abuja on Wednesday that the initiative was one of those thought out to enhance the apex bank cashless policy, which had already seen aggregate electronic transactions, including the cheque processing rise to N100 billion.

But for the card schemes, Fatokun noted that the Point of Sale transactions now recorded about N1.5 billion daily averages, while number of POS terminals in the country had risen to over 120,000 from 5,000 recorded in 2011 when the cashless policy commenced.

Fatokun was speaking at the second Electronic Payment Incentive Scheme, EPIS, Monthly Raffle Draw, where the CBN gave out cash prizes to three bank customers who emerged winners of a total of N175,000 for using their cards for transactions.

 “Another part of the electronic payment scheme that will commence soon is the purchase and cash-back in which case, a card holder can work up to a merchant, make some purchases and also get some cash withdrawals for a token.

 “And we are sure that this will encourage the people to use their cards and we are sure that this will help reduce the long queues seen today. This is all in an effort to ensure the success of the cashless policy,” he.

He explained that the CBN Electronic Payment Incentive Scheme, EPIS, Monthly Raffle Draw Initiative is primarily focused to reward users of electronic payment in Nigeria and to further encourage greater adoption by all.

He said that the incentive scheme would reward and appreciate usage across all channels with emphasis on channels of electronic payments that promote financial inclusion by aiming to identify and reward the cardholders, merchants and sales persons.

“The whole essence of the award scheme as the name implies is to incentivise three categories of stakeholders in the payment scheme.  And they are the cardholders, merchants and the sales persons so that they would be encouraged to use their cards, knowing that their support of the cashless Nigeria is not going unnoticed.

“It is not only noticed but recognised and also incentivized.  The merchants also have the loyalty programme into which they can key in which start very soon.

“We are sure that this will not only encourage people to use their cards, it will also serve to reduce long queues that we currently have at the ATMs.  All these are to ensure the success of the cashless policy.”

The director added that the award would spice up a reasonable level of awareness and excitement in the Nigerian e- payment system.

The scope of the initiative included development of the Raffle Draw software by the Nigeria Interbank Settlement System, NIBSS, for the  selection of Winners from a pool of successful card transactions on Point of Sales, POS,  from successful transactions  from the 1st day of the month to the last day of a particular month.

Ade Shonubi, Managing Director of the NIBSS said that the vision of Nigeria becoming one of the 20 largest economies of the world would not be achieved without the payment system being revolutionized because of the direct linkage between economic activities as well as, the level of development of the payment system.

His words, “Over-reliance on cash has its own disadvantages.  These are numerous: robbery, corruption, cost of cash management in the country, such as cost of printing currency notes and movement.

“This incentive scheme is being to encourage us Nigerians to begin to make payments using electronic means. It is to intensify the awareness for people to have attitudinal change.  We all know that one of the greatest challenges of changing things is attitude.  So we need this kind of incentives to encourage people to move from cash-based payment to making payment through electronic means”.

Akin Oyebola won the star prize of N100, 000. The runner-up Ajayi Samson got N50, 000; while the third prize went to Obinna Solomon who received N35, 000.