Last week, the
With the domestic card which is meant to serve as both a credit card and debit card, among other functions,
A card scheme is a central payment network that uses credit and debit cards to process payments. Its primary role is to manage payment transactions, including operations and clearing.
Card schemes have four players, the cardholder, the card issuer, the merchant and the acquirer, all of which together make up an open-loop system that allows consumers to seamlessly purchase items or services from merchants by letting the banks do all the work on their behalf.
Asides these four primary players in the card scheme, there are also intermediaries that facilitate the transaction, including the payment gateway and the payment processor.
Speaking at the virtual unveiling of Afrigo, the governor of the
While the foreign cards remain convenient, especially, for international transactions, he explained that the domestic cards are expected to better serve the unbanked market and increase competition within the payment landscape.
Emefiele stated that, although the penetration of card payments in
"This effort is not a quest to prevent international service providers from continuing to provide services in
According to CBN, the domestic card is expected to have the capacity to reduce
The CBN governor, noted that "at this time of of foreign exchange challenges that persists globally it is important that that we have this card to to ensure that all card transactions, online transactions where you're using cards will now effectively immediately begin to go on the Nigerian National Domestic system.
"At some point in the next few weeks, I'm sure that the CBN will come up with the cut off which will mean that all domestic transaction all domestic transactions that are going to be conducted in
"The charges on the foreign cards are in dollars, we will no longer pay dollars for those cards for the charges on those cards. We would only pay dollars for charges for transactions that are done with our domestic card or foreign cards outside
To the CBN deputy governor, Financial System Stability(FSS),
"So leveraging its industry position, NIBBS and with a strong regulatory backing of the
"The company -
The CBN governor had noted that the apex bank remains "committed to a robust, efficient and safe national payments system and welcomes innovation from both domestic firms and foreign investors. The Nigerian market is vast, and the current participants have done so much in the last twelve years to transform the ecosystem. Yet there is much ground to be covered as millions of Nigerians are yet without payments cards to consummate transactions.
"I am convinced that the National Domestic Card Scheme will make this a reality in the coming months. We can no longer neglect the vast majority of the Nigerians whose daily payments needs are micropayments. We need to capture them in national statistics to further understand their transaction dynamics and properly target interventions in that sector of the economy."
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