The Nigerian Interbank Settlement System (NIBSS) is reinforcing its commitment to a cashless economy with a series of contactless payment solutions designed to drive adoption and financial inclusion.
The payment infrastructure provider, speaking at a recent industry showcase, introduced the Soundbox, a portable audio notification device, and mCash Plus, a USSD-powered payment solution designed for underbanked feature phone users.
According to the body, the Soundbox is a portable terminal that instantly confirms payments with an audio alert, eliminating delays and uncertainties for merchants. This device aims to accelerate the adoption of NQR (Nigerian Quick Response Code) payments by offering a more intuitive and reliable transaction confirmation method.
During the demo, Onoshokemeh Williams, head of product and data Services at NIBSS, explained the device’s significance.
She said, “For some people who have seen this in certain climes, like China and India, it’s an ode to those countries that have used technology to support audio notifications through Soundbox. For those experiencing this for the first time, this will be another rail on which we hope to accelerate the use of NQR.”
Tony Oduah, a product specialist at NIBSS, further noted that the Soundbox technology will eliminate issues with payment confirmation when the phone linked for traditional means of confirmation, like SMS and email, is not closed.
“No more days of ‘I cannot confirm payments’ or ‘I have to call my mother.’ I don’t have the number that’s receiving SMS. With this Soundbox, merchants get an audio notification, and then they can release goods,” he explained.
According to the Oduah, the Soundbox also allows merchants to scroll through previous transactions and access a merchant portal by scanning a QR code on the device, making record-keeping and transaction tracking easier.
Recognising that not all Nigerians have smartphone access, NIBSS also introduced mCash Plus, a USSD version of NQR payments, enabling users of basic mobile phones to complete contactless transactions seamlessly.
“mCash Plus and NQR are the same,” Williams explained. “One is through the USSD rail, and the other is through the usual scan. The whole idea is that both of them go together. We are positioning this as an offering for those who don’t have smartphones but have feature phones. This is a solution for them.”
Data from Statista notes that in 2023, 40 percent of Nigerians used digital payments for goods and services. This was a significant increase compared to 2020, when the share was nearly 30 percent.
Beyond hardware, NIBSS is strengthening the financial ecosystem through API-driven solutions, enabling banks and fintech companies to build seamless payment experiences. The Transaction Notification Service API was highlighted as a critical tool for enhancing real-time transaction processing.
“All of this happened with the power of technology. What we did at NIBSS was to come up with a set of APIs that power the notification processing,” Williams stated. “That’s another tool that will be available for banks to help you achieve outcomes like this, where you can use the same API to notify NQR transactions and other transactions on our rail as well.”
NIBSS confirmed that several banks have adopted this API, improving transaction reliability across multiple platforms.
NIBSS’s efforts to expand NQR adoption align with Nigeria’s broader cashless policy, which aims to make digital transactions more accessible, efficient, and secure. In a bid to further drive adoption, the organisation announced a revised pricing model for NQR transactions designed to encourage wider participation from merchants and financial institutions.
“We’ve got a lot of feedback from partners like yourself, telling us what you wanted to see and what you’d like to see,” Williams stated. “Working with critical members of the MQI advisory committee, we came up with the new advanced pricing model.”
According to the institution, the pricing revision will take effect in March 2025. Williams noted that the NIBSS’s goal is to empower the banking and payment industry. She said, “Our goal is to empower the industry. We provide platforms, and most of these platforms are API-driven. Banks can latch onto them, rename them, and build solutions from them.”
In a separate conversation, Williams told BusinessDay that the NIBSS is on a mission to get people to do more with cashless payments.
“There’s always been a cashless policy, and as much as NIBSS is driving the ecosystem, we believe that more people should adopt more cashless options to make third-party payments to merchants and vendors,” she stated.
She added that the end goal is to position various methods of payment that are quick and efficient so that the beneficiary can receive payments quickly.
“While Nigeria may not yet be on par with Western markets, we are confident that through innovative solutions and strong partnerships, we can make contactless payments as prominent here as in other leading markets. Our goal is to position it as a fast and convenient payment option within our market,” she added.
The Central Bank of Nigeria is also invested in achieving contactless payment. Speaking at the Bankers’ Committee Annual Dinner, Olayemi Cardoso, the Governor of the Central Bank of Nigeria, said, “In 2025, we will prioritise initiatives including implementing our open banking framework, advancing contactless payment systems, and expanding our regulatory sandbox.” (BusinessDay)
