Nigeria’s estimated 40 million small businesses can now access low-cost contactless payment solutions to accept card payments easily and cost-effectively, using “tap on the phone”, “QR Pay by link” and “Payment link” on their smartphones.
The Mastercard solutions enable SMEs to convert their mobile phones to POS terminals and deliver seamless and convenient payment options to customers.
At a launch on Friday in Lagos, the company said the solutions align with the push by the Central Bank of Nigeria (CBN) to shape the future of payment with the introduction of the Framework for Quick Response (QR) Code Payment in January 2021.
This was followed by the release of the Exposure Draft of the CBN Guidelines for Contactless Payment in Nigeria in October 2022. The guidelines define contactless payment as “the consummation of financial transactions without physical contact between payer and the acquiring device(s),” enabling secure payments using Near Field Communication (NFC), Radio Frequency, or QR Codes.
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“As we navigate the evolving landscape of payments in Nigeria, 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.” said Kari Tukur, the Vice-President of Customer Solutions, East and West Africa at Mastercard.
The company noted that its contactless options dramatically reduce the cost of payment of payment acceptance devices, making it financially feasible for SMEs to adopt the technology. The implication is that even small businesses can use their low-cost smartphones to accept payments safely and easily. They are all pre-equipped with Mastercard’s secure payment acceptance technology by utilising QR codes, payment links, and contactless payments.
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According to Mastercard, QR code payments represent a compelling way to process payments without having to invest in extra hardware. Customers can set up QR code payments on their smartphones and start making payments immediately.
Contactless payments make the checkout experience faster and more convenient for all parties involved. With a contactless payment system in place, customers can skip the step of paying by cash or swiping their cards and inputting their PIN. They can simply tap the card against the terminal, in this case, their mobile phone, making for smoother transactions.
The NFC (Near Field Communication) technology that is built into contactless cards ensures seamless payment processing. Contactless payments also save a lot of time for business owners by decreasing transaction times and making it easier to invest that time in other business-related duties like inventory management.
