WorldStage Newsonline– The Central Bank of Nigeria (CBN), has issued a frame work for Quick Response (QR) Code for payment services in Nigeria.
The framework provides regulatory guidance for operation to ensure the adoption of appropriate QR code standards for safe and efficient payments services in Nigeria.
The apex bank said this was in furtherance of its mandates to, ensure the safety and stability of the Nigerian Financial System, to promote the use and adoption of electronic payments and foster innovation in the payments system.
According the CBN, “QR Codes are matrix barcode representing information presented as square grids, made up of black squares against a contrasting background, that can be scanned by imaging device, processed and transmitted by appropriate technology
“These codes can be used to present, capture and transmit payments information across payments infrastructure. The technology further enables the mobile channel to facilitate payments and presents another veritable avenue for promoting electronic payments for micro and small enterprises.
“The framework therefore stipulates: Acceptable QR Code Standards for implementing QR Payments in Nigeria; Interoperability of QR Payments in Nigeria; Roles and Responsibilities of Participants in QR Payments in Nigeria and Risk management principles for QR code Payments in Nigeria
“The QR Code Payments in Nigeria shall be based on the EMV® QR Code Specification for Payment Systems; The Bank may also approve the implementation of any other QR Code Standard, provided it meets the prescribed security requirements within the framework, demonstrates interoperability with other existing implementation in the industry and/or cost benefits to end-users (merchants and customers);
“QR Code Payments implementation in Nigeria shall support account, wallet, card and token based QR Code Operations; Implementation of QR Code for payments in Nigeria shall be based on the Merchant-presented mode (where merchants present the QR Code for buyers to accept in order to conclude payment transactions) specification;
“Participants in QR Code Payment in Nigeria include; Merchants; Customers; Issuers (Banks, MMOs and Other Financial Institutions); Acquirers (Banks, MMOs and Other Financial Institutions) and Payments Service Providers.”
According to the framework, “All issuers, acquirers, switches, processors and other participants in QR payments in Nigeria shall ensure full interoperability of QR Code Schemes in Nigeria.
“On risk management and compliance, the following risk management principles shall guide the operations of QR Code Payments in Nigeria: Issuers and acquirers shall clearly define risk management policy and guidelines for the operation of the QR Code Scheme. The risk management guidelines shall include detailed stipulation of the responsibilities of all participants for managing risk;
“QR Codes shall, at a minimum, be encrypted (AES) and/or signed; QR Codes Payments applications, updates and patches shall be duly certified by the Payment Terminal Service Aggregator (PTSA); Issuers and Acquirers, shall agree minimum due diligence guidance for merchant on-boarding without prejudice to the KYC/AML requirements of the Bank; Issuers and Acquirers shall ensure that only PTSA certified QR Code shall be utilised; Issuers and Acquirers shall ensure behavioural monitoring and fraud management systems are implemented to prevent, detect and mitigate fraud and money laundering;
“Issuers shall have the overall responsibilities for managing fraud risk and shall coordinate all participants towards managing fraud in its scheme; Issuers shall provide quarterly risk management assessment report to the Director, Payments System Management Department. The risk management assessment report shall include among others fraud report, vulnerabilities assessment and risk mitigating measures introduced.
“On dispute resolution “All consumer complaints shall be resolved in accordance with the CBN Consumer Protection Regulation. Infringements and Sanctions All parties shall comply with the provisions of this framework and other relevant guidelines issued by the CBN. The Bank shall apply appropriate sanctions to any party that fails to comply accordingly.”
