Over the last decade, the use cases of quick response (QR) codes have evolved from being a tool to facilitate information sharing into a pivotal tool for facilitating payments.
Notably, QR codes have experienced rapid growth since the COVID-19 pandemic, becoming a dominant force in the global retail economy, especially in countries such as China and India. This evolution, especially with payments, has been driven by the increased global penetration of smartphones, convenience, cost-effectiveness, and versatility of QR codes. Reportedly, 44.6% of internet users had scanned a QR code at least once, as of 2023. This rise is further linked to the growing popularity of contactless payments, and QR code use is expected to reach $3 trillion globally this year.
Nigeria, with its rapidly growing fintech ecosystem, teeming youth population and increasing smartphone usage, is enabling the adoption of QR codes in retail transactions, offering merchants and consumers an easier, faster, and safer alternative to cash and traditional card payments.
In this newsletter, we have explored the legal and regulatory framework governing the use of QR codes as a payment method within Nigeria’s retail market. We have further highlighted the roles of key participants involved in supporting the end-to-end lifecycle of QR code-based transactions.
Additionally, the newsletter assesses the potential impact of QR systems on retail payments, particularly as the Central Bank of Nigeria (CBN) continues its drive toward a widespread contactless payment regime.
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