The Nigeria Inter-Bank Settlement System (NIBSS) is stepping up its game with the launch of the National Payment Stack (NPS), an innovative instant payments platform powered by technology from US-based Transactility. This cutting-edge system is set to revolutionise digital transactions across Nigeria, supporting seamless transfers, QR code payments, and more.
Leveraging Transactility’s jPOS open-source technology and jPTS payment switch, NIBSS aims to enhance the country’s financial infrastructure. With a focus on the ISO 20022 messaging standard, the new platform will enable financial institutions to exchange richer, more structured transaction data.
The NPS is designed to facilitate instant account-to-account transfers, convenient QR payments at merchants, and payments via user-friendly identifiers like phone numbers, plus it even supports bulk payments. Built with a modular architecture, NIBSS combines its own technology with selected open-source tools, allowing for easy adaptation as market needs evolve.
A standout feature of this partnership is NIBSS’s access to the source code, granting the organisation the flexibility to make modifications and improvements without being fully reliant on a vendor. According to Premier Oiwoh, NIBSS’s Managing Director and CEO, the platform is tailored to meet the dynamic demands of Nigeria’s bustling payments market, paving the way for a more efficient financial future.
“The NPS was designed and built for the scale and demands of the Nigerian payments market. The jPOS ecosystem gives us the flexibility to continue developing the platform as the ecosystem evolves,” Oiwoh said.
Similar read: NIBSS CEO Premier Oiwoh pushes for zero transfer fees in Payments Vision 2028
Alejandro Revilla, founder and chief technology officer of Transactility, described the selection of its technology as an important milestone for the company and the wider payments industry.
He said the partnership demonstrated how open technology and local engineering could be combined to build payment infrastructure for a national market.
“This development is an important milestone for Transactility and the wider payments community,” said Alejandro Revilla, Founder and CTO of Transactility. “We are proud that NIBSS selected technologies from the jPOS ecosystem for the National Payment Stack. NPS shows how open technology and local engineering can be used to build national payment infrastructure at scale.”
What the NIBSS-Transactility partnership means
The integration of open-source technology presents an exciting opportunity for NIBSS to gain greater control over the evolution of the National Payment Stack (NPS). By moving away from a vendor-dependent proprietary system, NIBSS can directly access and modify the source code, tailoring the platform to better meet its specific needs.
However, the recent announcement leaves some questions unanswered. It doesn’t provide details on transaction volumes or performance metrics that would benchmark the NPS against current payment systems. Additionally, users are left wondering when the promised payment features will actually be available.
For banks and fintech companies, the value of this platform hinges on its deployment, the connectivity with financial institutions, and its ability to enhance the speed and reliability of digital payments. While the NPS is poised to play a significant role in Nigeria’s payments landscape, it’s important to note that it won’t immediately replace existing instant transfer services. The true impact will unfold as more details about its implementation and uptake become available.
Owned by the Central Bank of Nigeria and licensed deposit banks, NIBSS is instrumental in facilitating interbank transactions, the Bank Verification Number system, and various services across Nigeria’s financial sector.
Partnering with Transactility, a payment-processing technology leader based in Boca Raton, Florida, NIBSS is poised to strengthen Nigeria’s payment infrastructure. Whether this partnership leads to faster, more reliable payments for consumers and businesses will ultimately depend on the NPS’s execution and real-world performance.
Also read: NIBSS completes first live transaction on National Payment Stack system
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