NIBSS Offers Cash Back Reward to Increase Use of PoS

Nigeria Interbank Settlement System (NIBSS) is offering electronic cardholders in the country cash back of 50 kobo for every N100 spent in the use of e-payment cards to pay for goods and services on PoS terminals and web platforms.

Chuks Iku, chairman, Committee of E-Banking Industry Heads (CEBIH),  disclosed this at an interactive session with media in Lagos.

“The committee and all member banks have partnered with the Nigerian Inter Bank Settlement System (NIBSS) for an incentive scheme for members of the public whereby cash back rewards are given to card holders for using their cards to make payments on alternate channels. The objective is to encourage usage of cards on PoS and the Web”, he said.

Under the guidelines for PoS Terminal Card Acceptance Services, merchants are to pay PoS transaction fee of 1.25 percent of the transaction value subject to a maximum N2000.   

This fee is shared among organisations involved in the provision and operation of the PoS terminals.

Iku explained that under the incentive scheme, 40 percent of this fee, which represents part of the portion that belongs to NIBSS and the banks will be given as cash back for transactions on PoS terminals and web platforms. This translates to 50 kobo cash back for every N100 spent through these e-payment channels.

He said that this is in line with the objective of CeBIH,  which is promotion of electronic banking services in Nigeria in line with “Global best practices”.

CeBIH, he said,   “comprises all heads of e-business, e-banking, e – channels/ card services of all banks in Nigeria and the  overall vision of the Committee is to drive the adoption of electronic banking services through the right technologies, policies, standards, innovation and public awareness”

He added that this underpins CeBIH’s support for the cashless policy of the Central Bank of Nigeria (CBN) introduced in January 1st 2012. 

“The committee acknowledges that the effort is yielding positive results as reflected in the increase in the number of transactions consummated via electronic payment channels since the flag-off of the policy.

The Committee acknowledges the spirited efforts, the CBN is making towards engendering a vibrant and prosperous banking sector in Nigeria and particularly the drive to ensure the success of the cash-less policy in Nigeria”, he said.