CBN Rolls Out Electronic Payments Incentive and Awareness Campaign

Regulators
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September 19th, 2014/CBN

 

In furtherance of the drive for the pervasive usage of electronic payments in Nigeria, the Management of the Central Bank of Nigeria has approved an industry-wide incentive scheme and awareness campaign for electronic payments stakeholders and users.

 

The scheme is primarily focused to reward users of electronic payment in Nigeria and to further encourage greater adoption by all. The incentive scheme will reward and appreciate usage across all channels with emphasis on channels of electronic payments that promote financial inclusion.

 

The scheme has identified and will reward the following categories of users:

•Consumers

•Merchants

•Sales Persons

 

The incentive scheme and awareness campaign is designed as a "white-label" campaign in which all stakeholders are required to partner.

 

The implementation schedule, which has taken into consideration, the system configuration that will be required for successful roll-out of the scheme, is hereby attached.

 

We solicit for the cooperation of all stakeholders for the successful implementation of the Electronic Payments Incentives Scheme (EPIS).

 

Implementation Schedule For The E-Payments Incentives Scheme

The following suite of incentives will be implemented: 

Merchants

S/N

Incentive

Description

Implementation Date

1

Reduction of MSC

 Merchants Service Charge(MSC) rate will be reduced from the current 1.25% or N2,000 to 0.75% or a maximum of N1,200 per transaction. The current sharing ratio among the various participants will be retained.

November 1, 2014

2

Commission on Turnover (COT) Exemption

Free COT will be accelerated ahead of the dates on the Guide to Bank Charges, for merchants. Therefore, all electronic inflows into the accounts of merchants will be exempted from the calculation of COT at the end of each month.

November 1, 2014

3

Mystery Shopper and Recognition

NIBSS Plc will administer rewards to merchants through a mystery shopper recognition campaign.

November 1, 2014

4

Purchase with Cash-back

NIBSS will collaborate with Deposit Money Banks for the implementation of POS functionalities that will permit merchants to offer cash-out services to their customers.

January 1, 2015

 

Consumers

S/N

Incentive

Description

Implementation Date

1

Point Based Reward System

This will be adopted to reward cardholders, based on point grossed through frequency of card usage. NIBSS will implement the program, in conjunction with other service providers.

December 1, 2014

2

Cash Refund

Refund of cash, based on card usage is currently being implemented by all banks.

On-going

3

Merchant Promotional Campaign

Merchants may leverage on the incentive scheme to offer promotional gift items to their customers, based on the usage of electronic payments for transactions.

December 1, 2014

 

SALES PERSONS

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.

   

EFFICIENCY AWARD

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.

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