As the Central Bank of Nigerias cashless economy initiative gathers momentum, the Nigeria Inter-Bank Settlement System Plc has commenced the fast- tracking of Point of Sale terminals transactions in the country.The NIBSS operates as an automated clearing house for the clearing of cheques, electronic funds transfer, Automated Direct Credits and Automated Direct Debits, among other electronic payment products in the country.NIBSS said on Friday that it had commenced T+1 Settlement of POS transactions, processed through Valucard Nigeria Plc, into merchants bank accounts. The General Manager, NIBSS, Mr. Niyi Ajao, said that the T+1 settlement rule was designed to ensure that businesses that accept payments through POS devices received value for their daily sales the next day. He recalled that banks used to settle merchants on the third day (T+3) before now but said merchants bank accounts would now be credited the next day after they made their sale.Ajao said the T+1 settlement regime on POS card acceptance services released in August, 2012, was introduced by the CBN to encourage merchants to accept card payments in place of cash.Ajao, who stated that the T+1 settlement was a critical clause in the CBN Guidelines on POS Services, said, "With the commencement of the T+1 Settlement for POS transactions by NIBSS, the banking industry has again shown commitment to the success of the Cashless Lagos project. The T+1 settlement scheme is intended to make card payments more attractive to business owners, whether big or small, and to further encourage the use of POS devices for business transactions. "This is a step in the right direction, and it is my firm belief that this new service will delight merchants who now have quicker access to the proceeds of their daily sales; it will accelerate the growth of the Nigerian financial system and the nations economy."The NIBSS Plc, through its Automated Bulk Clearing bureau, now carry out T+1 Settlement into bank accounts of merchants who accept card payments on POS terminals using its NIBSS Electronic Funds Transfer service. He said the NEFT enabled same day (Direct Credit and Direct Debit) electronic fund transfers based on bank account numbers, through bank teller points, Internet banking, mobile phone, e-Commerce and other modern Payments Service delivery channels.According to him, the NEFT provides security, ease of use, accessibility, convenience, efficient settlement and reconciliation functionalities, adding that it is already available across all banks in the country.In the same vein, the Deputy General Manager, Operations, NIBSS, Mr. John Obiekwe, affirmed that the commencement of T+1 Settlement would create better value for business organisations and financial institutions who would not have to worry about cash handling issues. "A major concern in the Cashless Lagos project is about how quickly merchants can get value from their transactions done through POS channels, and that is why the CBN has directed the T+1 settlement scheme," he added.Meanwhile, the Nigeria Postal Service has partnered with eTranzact International Plc to ensure successful implementation of the cashless initiative across the country.With the partnership, the NIPOST Deputy Postmaster General, Mr. Yashim Bitiyong, said NIPOST had now been positioned as a financial institution that would deliver e-Payment services to Nigerians."The introduction of this range of financial services at the Post Office counters will enhance NIPOST service delivery and customer satisfaction," he saidBitiyong added that NIPOST would operate on cashless basis using eTranzact electronic payment platform. Speaking on the partnership, the Group Head, Business Development, eTranzact, Mr. Adeyemi Adeyemo, said, "This partnership will give cardholders access to e-Payment services anytime, anywhere. NIPOST has over 1,500 outlets nationwide and with this partnership we have brought e-Payment services closer to Nigerians."
Click here to read full news..
