Experts canvass for reduced risk to promote cashless policy
Experts have expressed the view that the process of achieving a cashless system in Nigeria would be better attained if the risks associated with PoS transactions are seriously addressed.
At the fourth quarter edition of the PoS Innovation Summit held in Lagos recently, stakeholders in the PoS value chain were urged to come up with strategies to encourage its usage and adoption as a veritable tool for transactions, in support of the Central Bank of Nigeria’s cashless policy.
They were also advised to invest in people as well as processes in order to ensure that there are no knowledge gaps and that there are clearly defined roles and responsibilities.
The summit with the theme: “Secure PoS Transactions”, was powered by Global Accelerex Limited, a CBN licensed Payment Terminal Service Provider (PTSP) with delegates from the Central Bank of Nigeria, commercial and microfinance banks, Payment Terminal Service Providers (PTSPs) and other relevant stakeholders.
Emmanuel Obaigbona, former chairman of the Nigerian Electronic Fraud Forum (NeFF), who was a keynote speaker at the summit, said that the potentials available in the PoS value chain would remain untapped if steps were not taken to address already identified security concerns. He canvassed a pro-active approach to tackle the issues within the shortest time possible.
While acknowledging the significant growth of the PoS payment system in Nigeria, Dipo Fatokun, Director, Banking and Payments System, CBN, stated that; ‘It is essential that we continue to conduct necessary due diligence on any merchant to be extended a PoS terminal. Banks must know the businesses of their respective merchants and carry out appropriate risk ratings, while acquirers and issuers must implement fraud monitoring tools on both issuing and acquiring sites of their businesses’.
Peter Obadare, Co-Founder and Chief Operating Officer of Digital Encode, attributed security breaches to inadequate infrastructure, high propensity of failed transactions, inconsistent system reports and settlement delays.
The consensus at the summit was the need for players in the PoS value chain to address risks from all required dimensions – architecture, design, implementation, and operation, and provide innovative solutions that would ensure the security of transactions.
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