By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE) – The Central Bank of Nigeria (CBN) on Friday announced incentives to encourage electronic payments (e-payments) in Nigeria according Dipo Fatokun, director, banking and payments system department in circular dated September 18, 2014.
The circular entitled ‘’Electronic Payments Incentives Scheme and Awareness Campaign’’ said the scheme has identified and will reward three (3) categories of users which include: consumers, merchants and sales persons.
From November 01, 2014, Merchants Service Charge (MSC) rate will be reduced from the current 1.25 percent or N2,000 to 0.75 percent or a maximum of N1,200 per transaction. ‘’The current sharing ratio among the various participants will be retained,’’ the CBN said.
Also, on November 01, 2014, there will be Commission on Turnover (COT) exemption; the CBN said free COT will be accelerated ahead of the dates on the Guide to Bank Charges, for merchants.
It said all electronic inflows into the accounts of merchants will be exempted from the calculation of COT at the end of each month.
For the consumers, there will be Incentive Point Based Reward System which will be adopted December 01, 2014 to reward cardholders, based on point grossed through frequency of card usage.
The CBN said the Nigeria Inter Bank Settlement System Plc (NIBSS) will implement the program, in conjunction with other service providers.
According to Nigeria’s Central Bank, sales persons will be encouraged to support electronic payments by having them enrolled on the tipping point schemes, through which they will earn points accrued over a period. Such points may be redeemed by the sales persons through various gift items or cash.
Also, Payments System Services Providers (Banks, PTSPs, PSAD, PTSA, Switches, etc) across the value chain, will be through periodic awards, based on their innovation and efficiency. ‘’This program will be administered by NIDSS, in conjunction with other service providers,’’ the CBN affirmed.
The CBN say the scheme is primarily focused to reward users of electronic payment in Nigeria and to further encourage greater adoption by all and will reward and appreciate usage across all channels with emphasis on channels of electronic payments that promote financial inclusion.
It further affirmed that the incentive scheme and awareness campaign is designed as a “white-label” campaign in which all stakeholders are required to partner.
‘’We solicit for the cooperation of all stakeholders for the successful implementation of the Electronic Payments Incentives Scheme (EPIS),’’ the CBN said.
