The Nigeria Quick Response (NQR) payment solution code is playing a key role to the success of the Lagos State Government’s Ounje Eko discount market initiative by facilitating transactions and reducing congestion, writes Tony Chukwunyem.

Even as the Lagos State Government continues to receive plaudits for introducing the Ounje Eko discount market initiative, the various centres where the markets are located are helping to demonstrate how innovative payment solutions can significantly simplify transactions and enhance customer experiences.

Introduced by the Lagos State Government to provide discounted food prices across the state, as part of its efforts to help Lagosians cope with the cost of living crisis, customers at the market initially encountered challenges with traditional payment methods due to the cashless policy requirements for making purchases at the discount markets.

NQR comes in handy

However, the introduction of the NQR payment solution at the market provided a timely and practical solution for customers. NQR played a crucial role in simplifying the payment process and reducing congestion at the payment point. Launched in March 2021 by the Nigeria Inter-Bank Settlement System Plc (NIBSS) the NQR payment solution code is an innovative payment platform implemented on behalf of all financial service providers.

The payment solution offers a robust platform that delivers instant value for P2B and P2P transactions by simply scanning to pay. Designed to be “low cost” for merchants, the payment solution enables shoppers to scan a QR code generated by a seller to pay for an item. Each code will have unique details containing the information relating to the transaction and would link with a customer’s Banking App, already enabled on their smartphone.

New Telegraph’s visit to the discount markets showed that customers who needed to pay for their purchases were able to do so seamlessly. They simply logged into their Mobile Banking APPs, navigated to a NQR menu and scanned the QR codes provided at the payment points to conclude the transaction. This eliminated the need for physical cash or relying solely on the limited number of Point of Sale (POS) terminals.

One of the supervisors at one of the discount markets told New Telegraph that she highlighted NQR’s pivotal role in facilitating transactions and reducing congestion, which, according to her, is contributing significantly to the success of the discount market initiative.

It was also observed that some banks took their service delivery to higher level by incorporating a receipt printing feature into their POS machines, thus ensuring that when customers paid with NQR, a receipt is promptly generated as proof of transaction. A customer who paid with NQR told New Telegraph that this feature proved particularly beneficial at the market, as it allowed for instant confirmation on transaction status before collection of food items.

Adoption by banks New Telegraph’s findings indicate that several banks have embraced the NQR payment solution, by integrating it into their mobile apps to offer customers a seamless payment experience. Some of the banks at the market locations that have integrated NQR payment solution into their mobile apps, are Access Bank, First Bank, Stanbic IBTC, Zenith Bank, UBA, Union Bank, Providus Bank, FCMB, Keystone Bank, Sterling Bank, Globus Bank, Wema Bank, Titan Trust Bank, Polaris Bank, Signature Bank, Jaiz Bank, Lotus Bank and VFD Microfinance Bank. Specifically, Providus Bank and Sterling Bank stood out as the key notable banks that facilitated this payment service at the discount markets.

These banks demonstrated their commitment to innovation by incorporating NQR into their mobile apps, providing customers and merchants with a convenient and secure way to make and receive payments using QR codes.

Recent data released by a payment forum, shows that over 5 million registered merchants nationwide are now equipped to accept NQR payments, with an additional 100,000 onboarded within the first quarter of 2024. NQR transactions totalling N295 million (in value) were processed during this same period.

Conclusion

Analysts believe that customers’ seamless use of innovative payment solutions like NQR at the Ounje discount markets underscores its effectiveness in simplifying transactions and enhancing the overall customer experience. Indeed, by facilitating seamless payments through QR codes, NQR played a key role in reducing congestion, streamlining the payment process for both customers and collection agents, while also providing them with instant value of payments made.