Nigeria: Regulators introduce reward scheme for electronic payment users

Central Bank of Nigeria.

Central Bank of Nigeria.

12 August 2015, Abuja – In furtherance of the drive for Nigerians to widely embrace the use of electronic payment system, the Central Bank of Nigeria (CBN) has approved an awareness campaign for electronic payment users.

The incentive scheme known as “Electronic Payment Incentive Scheme (EPIS)” is being implemented by CBN and the Nigerian Inter-Bank Settlement System Plc (NIBSS).

The scheme is primarily focused at rewarding users of electronic payments platforms in Nigeria and to further encourage greater adoption of the on-going Cashless Initiative by all while promoting financial inclusion.

The EPIS Project Manager, Mrs. Funmi Momodu, in a statement yesterday, said NIBSS card holders are already benefiting from the CBN EPIS program through the ongoing weekly cashback credited to their accounts for payments for purchases made via POS terminals.

“Other components of the incentive scheme include, the reduction of Merchant Service Charge (MSC) from 1.25 per cent to 0.75 per cent or a maximum of N1,200 as against the initial of N2,000, and the accelerated COT exemption for electronically based transactions.

The scheme also permits merchants to provide cash back services to cardholders following a purchase. This serves as an incentive for merchants to earn a fee for providing a value-added service Cash-out services to customers following a purchase of goods/services from their stores, “she said.

Momodu also noted that part of the EPIS is the Loyalty Scheme (Point Based Reward System) which is scheduled to Go-Live in the fourth quarter of 2015; “this will allow cardholders earn points each time payments are made via a POS terminal. These points can be accumulated and redeemed for gift items on the CBN Loyalty Web portal.”

In addition, Head, Corporate Communications in NIBSS, Mrs. Lilian Phido, stated that the CBN had approved the implementation of EPIS raffle draw as a sensitization exercise before the launch of the loyalty scheme. NIBSS, she stated, is set to kick start the maiden draw by the end August this year.

“The monthly draw is open to all domestic cards and is scheduled to commence in Lagos. Card holders who perform POS transactions that meet the preset criteria defined in the campaign within the month under review will automatically qualify for the raffle draw. The draw would be based on a random selection of transactions done on POS in the course of the month under review.

“NIBSS would work with the Issuing Banks to confirm and contact the winning cardholder’s details as well as the merchant details as registered on the Central Terminal Management System. All Winners are expected to have a BVN for authentication of Bank Account “Furthermore, the draw would reward winners for point of sale (POS) users for the month prior to the draw, that is, POS transactions done in July 2015 will be eligible for the draw scheduled for August 2015.

“The raffle draw would be divided into 3 winning categories monthly and the cash prizes will be allocated as follows: 1st Prize Winner -N100,000, 1st Runner Up -N50,000 and 2nd Runner Up – N15,000.
*Eromosele Abiodun – Thisday

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