Leveraging NQR to Drive Cashless Transactions, Financial Inclusion

As digital payment solutions gain traction worldwide, Nume Ekeghe reports that Nigeria can harness the New Quick Response payment solution to transform its financial ecosystem

As consumers and businesses embrace technology-driven solutions, the demand for efficient digital payment options continues to rise. Financial sector players are expanding IT infrastructure to enhance payment processing, collections, and the overall transaction experience. One such solution is Quick Response (QR) codes, which have revolutionized industries, including Transportation, Tourism, Security, and Aviation by significantly improving user experiences.

NQR presents a game-changing opportunity for Nigeria’s financial landscape, offering a secure, convenient, and efficient alternative to cash transactions. Similar to successful implementations in China, India, and Egypt, Nigeria’s increasing smartphone adoption provides a strong foundation for NQR penetration. The scan-to-pay system enables quick person-to-business (P2B) and person-to-person (P2P) transactions, unifying various QR code schemes into a consistent, user-friendly platform.

Designed to be cost-effective for merchants, NQR allows customers to scan seller-generated QR codes to make payments directly from their bank accounts via mobile banking apps. Each QR code contains transaction-specific details, ensuring a seamless payment experience. Under the supervision of the Central Bank of Nigeria (CBN) and NIBSS, this secure and instantaneous platform, offers a compelling alternative to cash transactions.

Despite its advantages, NQR has yet to achieve widespread adoption in Nigeria compared to other countries. To address this, NIBSS recently hosted an NQR Payment Demo Day at its headquarters in Lagos, bringing together banks and financial stakeholders for live demonstrations and discussions on enhancing the platform’s reach and usability.

Speaking at the event, NIBSS Managing Director and CEO, Premier Oiwoh, emphasized the urgent need for financial and payment stakeholders to accelerate NQR adoption, given the global shift towards contactless payments powered by technologies such as Near Field Communication (NFC).

“NQR is an innovative product that stands out, and we need to understand, innovate, and leverage it to drive financial inclusion,” Oiwoh stated.

Highlighting its unique capabilities, he noted that NQR is the world’s first account-based QR payment solution, delivering instant value to merchants and consumers.

“As we showcase the various use cases for NQR, it is important to highlight that this account-based QR solution is the first of its kind globally, offering instant value to merchants and other beneficiaries. In addition to peer-to-peer (P2P) transactions, NQR also supports business-to-person (B2P) payments, with most banking apps already integrating this feature.

“Our goal today is to demonstrate the unique capabilities of NQR and the opportunities it presents. Ultimately, my aspiration is to see Nigeria adopt a payment culture where digital transactions become the preferred choice over cash, just as seen in other developed economies. NQR offers a seamless and accessible payment solution that does not rely on electricity or complex infrastructure; just a QR code that ensures payments are credited directly to the recipient’s account.

“I envision a future where even street hawkers can generate and display their QR codes, perhaps on a lanyard, allowing customers to scan and pay instantly,” he added.”

He noted that NQR as a payment and collection platform has recorded impressive growth since its introduction in the financial payment landscape, adding that it has proved to be a seamless tool for deepening financial inclusion as well as a means of effecting digital payment transactions.

He maintained that its relevance is even more appreciated in its ability to fast-track money transfers or payments between customers/individuals and merchants, merchants and merchants, and even between individuals and individuals.

“NQR is an indigenous, QR-code-based payment and collections solution powered by NIBSS on behalf of the Financial Services Industry in Nigeria. It offers a fast, easy, secure and reliable account-based option for making and receiving payments for goods and services. Designed to unify all existing closed QR code schemes, NQR ensures a seamless and consistent user experience, promoting digital adoption across the country.

“In countries like China and India, QR payments have become the dominant method of transactions, offering speed, convenience and seamless payment experiences. What we are introducing here not only replicates but enhances these capabilities. Today’s demo session highlights the key features of NQR, and we hope that those in attendance will take this insight back to their organizations to explore how best to leverage this solution in driving digital payments and financial inclusion across Nigeria,” he said.

Integrating NQR Codes

For the NIBSS boss, NQR adoption is gaining momentum, revealing that Lagos state government is already incorporating the technology into its revenue collection processes. Thanking the Lagos state government, he said, “Over the past week, in collaboration with NIBSS, they have successfully generated over 750,000 QR codes. This means that once individuals receive their bills; whether for land use, utilities, or other payments, they can simply scan the code from the comfort of their homes and complete their transactions seamlessly.

“This adoption continues to grow because it prioritizes convenience. There’s no need for additional steps; just scan the code on your receipt via a mobile app, enter the amount and proceed with payment. The system is fully integrated with the ERP, ensuring proper identification of the payer.

“For banks, this presents a significant opportunity, as collections are routed directly to them. I am also excited about two other major players currently exploring NQR, with plans to issue over 10 million QR codes. They are already engaging with us to drive this initiative forward.”

Innovative Secured Payment Platform

Addressing security concerns, Oiwoh assured stakeholders that NIBSS has designed NQR to be domesticated and highly secure. Since its launch, it has remained one of the safest and most cost-effective digital payment platforms in Nigeria.

“NQR is an account-based system, not a standalone solution. Payments are made through users’ mobile banking apps, requiring authentication via PIN or facial recognition for every transaction,” he explained.

He also highlighted that two-factor authentication (2FA) is embedded in every transaction, ensuring fraud prevention.

Speaking on its track record, he added, “NQR has been running successfully for over three years now. This underscores its reliability as a secure digital payment platform.”

Feedback from Financial Ecosystem

Oiwoh acknowledged the positive reception of NQR among Nigerian financial institutions, citing UBA as a frontrunner in NQR transaction volume and adoption.

“UBA leads the market in NQR transactions, on-boarding, and usage. Other banks and fintech firms are also embedding NQR within their ERP systems to streamline QR issuance and payment processing,” he disclosed.

He further emphasized that other banks and fintech companies are also integrating NQR into their offerings, embedding it within ERP systems to facilitate seamless QR code issuance and payment processing.

“Beyond banks, fintech firms and tech-driven organizations are leveraging NQR by integrating it into ERP systems, enabling automated QR code generation and payment reconciliation. “Additionally, insurance companies have adopted NQR as part of their invoicing system, allowing users to scan and pay seamlessly while instantly receiving digital third-party or comprehensive insurance certificates,” he added.

Oiwoh reaffirmed NIBSS commitment to enabling a fully digitized payment ecosystem that enhances customer experience across industries.

“Looking ahead, I envision a future where subscriptions for newspapers and similar services are seamlessly integrated into the NQR ecosystem. With every transaction tied to the payer, businesses can easily identify their customers and streamline payments. It’s important to note that NQR is the world’s first account-based and instant QR payment solution, uniquely designed to address the specific needs of the Nigerian market,” he concluded.

NIBSS Executive Director, Business Development, Ngover Ihyembe-Nwankwo, underscored the company’s commitment to working with banks to improve NQR accessibility for everyday transactions.

“As demonstrated today, we are actively collaborating with banks to simplify NQR access. If users struggle to locate the feature in their banking apps, it diminishes the convenience versus cash. However, if we position NQR as the go-to payment solution for small businesses and vendors, its impact could be transformational,” she emphasized.

Powering Payment Through mCash+

Expressing enthusiasm about the transformative potential of NQR USSD components for traders, transport operators and other small-scale businesses, the Executive Director of NIBSS, Mrs. Ngover Ihyembe-Nwankwo, highlighted the unique advantage it offers for low-value, high-frequency, last-mile payments particularly for those who are cost-conscious. She emphasized the critical role of the USSD string on the NQR mCash+ platform in addressing these needs.

“This is where mCash+ plays a vital role. It was important for us to develop a solution that operates seamlessly on the USSD framework. Imagine the impact of combining this with a SoundBox for a food vendor who traditionally has to pause, handle cash, give change and manage small cash wallets.

“With a USSD-enabled payment option, transactions can be confirmed audibly via the SoundBox, ensuring that payments are received instantly. For those who require more advanced solutions, a POS device that prints receipts remains an option; where the only expense incurred is for receipt paper, without additional transaction fees,” she explained.

Ihyembe-Nwankwo reaffirmed NIBSS commitment to driving financial inclusion through innovative digital payment solutions that cater to all segments of the economy.

“Some merchants may prefer card payments, and we fully support that. Others may opt for instant payments, that’s where NIP (NIBSS Instant Payments) and now NQR, continue to automate and enhance efficiency across Nigeria’s payment landscape.” she concluded.

However, THISDAY observed that despite the growing adoption of NQR codes, some banks remain hesitant. Guaranty Trust Bank (GTBank), for instance, is yet to integrate the technology fully into its payment platform. While observant of its potential, especially at events such as the recent Lagos Food Bank initiative, the bank’s reluctance remains a concern for some customers given its significant customer base.