CBN's credit card takes off

• Published date: 16 January 2023
• Publication title: Nigeria - The Nation

ACREDIT card designed by the Central Bank of Nigeria (CBN) for domestic use has been scheduled for deployment, it was learnt yesterday.

The card is expected to compete with other debit cards, including Mastercard, Discovery and Visa cards.

Following its introduction, local banks and other financial institutions will be in a position to offer payment solutions like debit, credit, virtual, loyalty and tokenised cards, non-interest card, identity card.

The CBN said it introduced the National Domestic Card because of its belief that Nigeria has achieved 'significant transformation in its payments system over the past decade.

The apex bank added that this has been driven by rapid digital and technological innovation, increasing mobile penetration and the proactive policy initiatives of the CBN which have spurred unprecedented adoption of digital financial services.'

It listed the benefits of the card scheme to include among others

Reduction of cost and use of foreign exchange

Protection of data sovereignty

Enabling locally relevant propositions

Making cards and payments more accessible and affordable for Nigerians.

Given that MasterCard, Visa, Discovery and other such cards are foreign controlled, the bank said National Domestic Card would ensure 'improved sovereignty and security of our data and its operations will be locally based. It will also help to improve and drive financial inclusion nationwide'.

The card also has the potential to leverage its platform 'for seamless dissemination of government-to-person payments and other social impact initiatives, ultimately enhancing financial inclusion and supporting the growth of a robust digital economy'.

The card will be delivered through Nigeria's central switch, the Nigeria Inter-Bank Settlement Systems (NIBSS) Plc, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.

Today's deployment will enlist Nigeria into the growing list of countries like India, Turkey, China, and Brazil that have launched similar cards for domestic use.

The countries have harnessed the transformative benefits of the schemes to drive their payments and financial systems, particularly for the underbanked.

The CBN said: 'The domestic card scheme will be...