Mastercard’s “contactless payment” allows Nigerians pay without PIN or swiping card

Mastercard says it has launched its contactless payment solutions, aiming to transform Nigeria’s payment landscape.

The solution will allow businesses to accept card payments easily and cost effectively, using “tap on phone”, “QR Pay by link” and “Payment link” on their smart phones.

The Central Bank of Nigeria introduced the framework for Quick Response (QR) code payment in January 2021. This was followed by the release of the draft of the CBN guidelines for contactless payment in Nigeria in October 2022.

The guidelines define contactless payment as “the consummation of financial transactions without physical contact between payer and the acquiring device(s),” enabling secure payments using Near Field Communication (NFC), radio frequency, or QR Codes.

With approximately 40 million small businesses in Nigeria, contactless payment options will make it easier for Small and Medium Enterprises (SMEs) to accept payments, thereby boosting growth. Traditional payment acceptance terminals can be too expensive for SMEs.

“As we navigate the evolving landscape of payments in Nigeria, Mastercard is proud to launch its contactless payment solutions,” said Kari Tukur, the Vice-President of Customer Solutions, East and West Africa at Mastercard.

“We understand the importance of seamless, secure, and cost-effective digital payment solutions, particularly for small businesses and consumers. We are determined to support and accelerate the adoption of innovative payment methods, ultimately fostering financial inclusion and economic growth in Nigeria. We’re committed to making a digitally inclusive future a reality for all.”

How this works

For businesses, QR code payments represent a compelling way to process payments without having to invest in extra hardware – customers can simply set up QR code payments on their smartphone and they’re ready to go.

With a contactless payment system in place, customers can skip the step of paying by cash or swiping their card and inputting the PIN. They can simply tap the card against the terminal, in this case their mobile phone, making for smoother transactions.

The NFC (Near Field Communication) technology that is built into contactless cards ensures seamless payment processing. Contactless payments also save a lot of time for business owners by decreasing transaction times and making it easier to invest that time in other.