CBN approves reward scheme for e-payment users

The Central Bank of Nigeria (CBN) has approved an industry-wide E-Payment Incentive Scheme and Awareness Campaign for electronic payment users.

This is in furtherance of the drive for Nigerians to widely embrace the usage of electronic payment system as a preferred means of payment for financial transaction.

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

The scheme primarily focuses on rewarding users of e-payment platforms in Nigeria, and to further encourage greater adoption of the ongoing Cashless Initiative by all while promoting financial inclusion.

According to Funmi Momodu, the EPIS project manager, NIBSS, card holders are already benefitting from the CBN EPIS programme through the ongoing weekly cash-back 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 percent to 0.75 percent 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.

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, Momodu also noted. These points can be accumulated and redeemed for gift items on the CBN Loyalty Web portal.

In addition, Lilian Phido, head, corporate communications in NIBSS, mentioned that the CBN had approved the implementation of EPIS Raffle Draw as a sensitisation exercise before the launch of the Loyalty Scheme.

NIBSS is set to kick start the maiden draws in August 2015. The monthly draws are open to all domestic cards and are scheduled to commence in Lagos.

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 – N 50,000 and 2nd Runner Up – 15,000.

Source: Nigerian Nation