NIBSS Enhances QR Code Payments, Partners with Lagos State to Drive Adoption

The Nigeria Inter-Bank Settlement System (NIBSS), is making a strong push for QR code transactions as a cash alternative for small-value payments. By upgrading its Nigeria Quick Response (NQR) platform, the company aims to boost adoption across the country, ensuring faster and more secure digital transactions.

NIBSS engineers have highlighted key improvements, including eliminating separate fee queries to speed up transactions and implementing stronger authentication measures for enhanced security. These upgrades align with NIBSS’ broader vision of deepening digital payments in Nigeria, particularly among small businesses and informal sector merchants.

As part of its expansion strategy, NIBSS has partnered with the Lagos State government to facilitate bill payments via QR codes. According to CEO Premier Oiwoh, this pilot program has already processed 750,000 transactions in its first week, demonstrating the viability of QR codes for everyday payments.

Beyond Lagos, NIBSS has introduced a USSD-based QR payment solution for feature phones, broadening access to digital transactions for users without smartphones.

Banking Sector Collaboration and Merchant Adoption

To accelerate QR code adoption, NIBSS has teamed up with financial institutions, including Sterling Bank, UBA, and Providus Bank. First Bank, for instance, has integrated QR payments into the homepage of its First Mobile App, a move that has significantly increased usage.

Sterling Bank has taken a step further by launching a self-onboarding app for merchants. This platform allows business owners to generate and print QR codes instantly, mirroring Alipay’s early expansion model in China. By simplifying merchant onboarding, Sterling aims to drive wider acceptance of QR payments across small and medium enterprises (SMEs).

Addressing Merchant Concerns with New Innovations

One of the key challenges facing digital payments in Nigeria is transaction confirmation. During the 2023 cash crunch, fintech firms like OPay, PalmPay, and Moniepoint gained traction by providing reliable transaction verification, while many commercial banks struggled.

To solve this issue, Providus Bank now offers receipt printing for QR transactions, while NIBSS is introducing the NQR Soundbox, a device that provides audible transaction confirmations. This innovation, inspired by India’s Paytm, has the potential to drive QR code adoption among small merchants who need instant and reliable payment verification.

A demonstration of the NQR Soundbox showed that it could announce transactions in English and store past transaction logs, allowing merchants to reconcile payments at the end of the business day. With a sound range covering up to 50 meters, this device could become a game-changer in Nigeria’s digital payment ecosystem.

The Future of QR Payments in Nigeria

As global QR code transactions are projected to grow by 50% to reach $8 trillion by 2029, Nigeria’s payment industry is positioning itself to tap into this trend. The success of NQR will largely depend on how quickly and seamlessly merchants and consumers can adopt the technology. If the right infrastructure is in place, QR codes could emerge as a dominant payment method, offering a cheaper and more secure alternative to cash.

With increasing partnerships, merchant-friendly innovations, and government support, Nigeria could soon see a widespread shift towards QR payments—driven not just by marketing efforts but by real-world efficiency and convenience.