• About
  • Advertise With Us
  • Home
  • Privacy Policy
Friday, May 23, 2025
  • Login
Jungle Journalist Media Limited
  • NEWS
  • POLITICS
  • ECONOMY & BUSINESS
  • GAMES & SPORTS
  • EDUCATION
  • ENTERTAINMENT
  • HEALTH & FOOD
  • NIGER DELTA
  • SECURITY / MILITARY
No Result
View All Result
  • NEWS
  • POLITICS
  • ECONOMY & BUSINESS
  • GAMES & SPORTS
  • EDUCATION
  • ENTERTAINMENT
  • HEALTH & FOOD
  • NIGER DELTA
  • SECURITY / MILITARY
No Result
View All Result
Jungle Journalist Media Limited
No Result
View All Result
  • NEWS
  • POLITICS
  • ECONOMY & BUSINESS
  • GAMES & SPORTS
  • EDUCATION
  • ENTERTAINMENT
  • HEALTH & FOOD
  • NIGER DELTA
  • SECURITY / MILITARY

Home » ECONOMY & BUSINESS » Factcheck: False! CBN isn’t scrapping ATM cards 

Factcheck: False! CBN isn’t scrapping ATM cards 

by Jungle Journalist
January 16, 2023
8
SHARES
84
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

 

 

Recently, an online platform posted a story that the Central Bank of Nigeria is set to scrap the Automated Teller Machine (ATM) cards.

 

The post, with the title “CBN set to scrap ATM cards, others, unveils National Domestic Card scheme,” suggested that the decision will take effect with the introduction of a National Domestic Card Scheme, which is set to be effective on January 16, 2023.

 

ReadAlso

Despite criticisms, CBN begins relocation of 1,500 staff to Lagos this week

Banks jittery over CBN’s fresh recapitalisation plan, as OPS, experts recommend N100bn as new capital base

 

What is an ATM card?

 

An ATM card is a payment card issued by a financial institution (i.e. a bank) that allows a customer to access cash through an Automated Teller Machine (ATM) as well as make approved point of purchase retail transactions (i.e. gas stations, grocery, hardware, department stores, etc).

 

Usually, ATM cards are payment are styled plastic cards with a magnetic stripe and/or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or (CVV).

 

In Nigeria, interbank networks allow the use of ATM cards at the ATMs of private operators and financial institutions other than those of the institutions that issued the cards.

 

Verification

 

Checks by Daily Trust show that CBN did not at any point pronounce the scrapping of ATM cards despite the introduction of the domestic card scheme, which is supposed to take effect from January 16th, 2022.

 

Checks by Daily Trust also show that the explanation given by the bank for rolling out the domestic card scheme is to promote stability, inclusion, and growth in the financial and payment system.

 

The scheme, according to the CBN, will be delivered through the Nigeria Inter-Bank Settlement Systems (NIBSS) Plc, which is the country’s central switch, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.

 

“The card scheme is also expected to foster innovation within the Nigerian domestic market, while enabling African and international interoperability, allowing banks and other institutions to offer a variety of solutions including debit, credit, virtual, loyalty and tokenized cards among others.

 

“Nigeria remains Africa’s largest and most vibrant economy and the pace of digitisation and innovation, alongside the expansion of mobile penetration and the proactive policy initiatives of the CBN have driven the accelerated adoption of digital financial services.

 

“Considering the strength and breadth of its banking sector and the rapid growth and transformation of its payments system over the last decade, Nigeria is ideally positioned to successfully launch a national card scheme,” CBN Director, Corporate Communications, Mr. Osita Nwanisobi, said.

 

He added that domesticating the card scheme would further enhance data sovereignty, enabling the development of locally relevant products and services and reducing demands on foreign exchange.

 

Daily Trust noted that if the card scheme is successfully launched in January, next year, Nigeria will join countries like India, Turkey, China, and Brazil which have already launched domestic card schemes.

 

How Domestic cards could work

 

Although the full details of its rollout and operations are still sketchy, checks by Daily Trust revealed that a national domestic card, just like other payment cards, could be used for cash transactions over Automated Teller Machines (ATMs) and Point of Sale (PoS) machines.

 

It is also expected to provide strong competition to the current biggest industry players, which are Visa, Verve and Mastercard.

 

Currently, Visa, Verve and Mastercard have dominated the card payment market in the country.

 

Although they are efficient, especially for international transactions, domestic cards are expected to better serve the unbanked market and increase competition within the payment landscape.

 

The cards are also expected to have the capacity to reduce Nigeria’s reliance on foreign-owned financial services companies.

 

But with direct participation in the market, CBN may disrupt the market structure and innovation by other players.

 

Background

 

A card payment scheme is simply referred to as payment network that processes payments using debit and credit cards.

 

Visa, Mastercard and Verve are two of the largest card payment schemes globally. Typically, banks and financial institutions sign up for a card payment scheme that they use to issue cards to customers for a fee.

 

In other developed climes, financial institutions are not the only ones that require the services of a card payment scheme.

 

Any business that intends to issue cards to its customers may require these services. For example, a supermarket that runs a loyalty programme could issue cards to customers. However, these cards may likely be backed by a financial institution.

 

Implications for Nigeria’s financial payment market

 

If the rollout comes into full force, it is set to disrupt the already existing giants – Visa, Mastercard and Verve – which use the three card payment systems used by financial institutions in Nigeria, but this could change by January 2023, when the CBN’s card payment scheme is expected to debut.

 

By launching a card payment scheme, Nigeria will join the likes of India, Brazil, and Turkey, all of which have domestic card payment schemes. RuPay, the Indian card payment scheme backed by the National Payments Corporation of India (NCPI), is already one of the largest card issuers in the country, with over 600 million cards issued by 1,100 banks in the South Asian country.

 

Already, the apex bank said the target of the new card scheme is to reduce the cost of operating cards in the country for both card issuers and customers.

 

In India, for example, banks that issue RuPay cards do not need to pay card registration fees, unlike when they issue Mastercard or Visa cards.

 

This has undoubtedly contributed to the card’s widespread acceptance in the 10 years since it was launched.

 

Also, with cheaper operating costs for banks, banks may reduce what they charge for issuing cards, which could encourage more people to use them.

 

For instance, Nigeria currently charges about N1,100 to issue debit cards, but this cost might drop.

 

Also, financial institutions may not have to deal with forex challenges as payments to the card payment scheme would be made in naira which, in the interim, will provide some respite as the country battles severe forex scarcity.

 

Conclusion: Checks by Daily Trust has ascertained that there was no point in time that the CBN hinted at scrapping ATM Cards, as such, the claim is False

 

This Fact Check is produced in partnership with the Centre for Democracy and Development (CDD), and first published by Daily Trust 

 

Tags: ATM cardCentral Bank of Nigeria
Share3Tweet2Send
Previous Post

Big Brother Titans Kick Off With 20 Nigerian, South African Housemates 

Next Post

WHO Recommends Use Of Facemasks As COVID-19 Resurges

You MayAlso Like

NATIONAL

2027: REVEALED—How Enugu ADC Plans To Restructure, Realign, Attain Victory

May 23, 2025
NATIONAL

Federal Ministry of Art, Culture, Tourism, Creative Economy Partner AFRIFF to Launch Groundbreaking Film & Content Market

May 22, 2025
NATIONAL

Otti to roll out 20 electric buses for public transportation

May 22, 2025
NATIONAL

Enugu Demands 13% Oil Derivation Share, Says State Excluded Despite Oil-producing Status

May 22, 2025
GAMES & SPORTS

Abia Gov Woos Investors For Devt Of Global Standard Stadium

May 22, 2025
NATIONAL

RED ALERT: Nigerian Youths Level of Drug Abuse Extremely Alarming – Singer

May 22, 2025
Next Post

WHO Recommends Use Of Facemasks As COVID-19 Resurges

Discussion about this post

Recent Posts

  • 2027: REVEALED—How Enugu ADC Plans To Restructure, Realign, Attain Victory
  • Federal Ministry of Art, Culture, Tourism, Creative Economy Partner AFRIFF to Launch Groundbreaking Film & Content Market
  • Otti to roll out 20 electric buses for public transportation
  • Enugu Demands 13% Oil Derivation Share, Says State Excluded Despite Oil-producing Status
  • Abia Gov Woos Investors For Devt Of Global Standard Stadium
ADVERTISEMENT

Recent Comments

  • Ogbuenyi Sunday on Anambra police arrest river-bathing prophet ‘Onye Eze Jesus’
  • Stephen CE on List of international stars who have joined #EndSARS/#EndSWAT and what they said

Trending

Igwe Luke Ogbu Ogbuta Okorie offers 100, 000 each for 62 Nkerefi students to mark 62nd birthday

BREAKING: Atiku, Obi, El-Rufai reach consensus, move political machinery into new party for 2027

Fiery Rejoinder From Indigenous Hausa Of Katsina Against Campaign To Create Fulani-Dominated Emirates In Core Hausaland

Igwe Luke Ogbu Ogbuta Okorie Awards #6.2M Scholarship To 62 Nkerefi Students To Mark 62nd Birthday

Otti to roll out 20 electric buses for public transportation

Another Boko Haram Leader Claims to Be New ‘Shekau’, Issues Threats Against Defence Chief, Muslim Clerics, Others

2027: REVEALED—How Enugu ADC Plans To Restructure, Realign, Attain Victory

RED ALERT: Nigerian Youths Level of Drug Abuse Extremely Alarming – Singer

ADVERTISEMENT

Ebonyi ADC Vows To Mobilize Citizens Deliver Atiku, Obi Come 2027, Begins Mobilisation Process

South-East Governors Have All Thrown Weight Behind Tinubu – Umahi

    ADVERTISEMENT

    Popular Stories

    • BREAKING: Gunmen Take Over Onitsha-Owerri Road, Set Over 10 Vehicles, Goods Worth Billions Ablaze

      2794 shares
      Share 1118 Tweet 699
    • JUST IN: CBN Governor, Godwin Emefiele sacked

      1821 shares
      Share 728 Tweet 455
    • BREAKING: Finland police arrests Simon Ekpa 

      1032 shares
      Share 413 Tweet 258
    • BREAKING: IReV Portal Shows Labour Party Won 19 States Plus FCT, PDP 8, APC 7, NNPP 2 States—Baba-Ahmed

      664 shares
      Share 266 Tweet 166
    • NEWS FLASH: Peter Mbah of PDP cruising to victory, wins 14 LGAs in Enugu guber polls 

      537 shares
      Share 215 Tweet 134
    • JUST IN: Daughter of Benin billionaire/CEO of Uyi Technical commits suicide

      510 shares
      Share 204 Tweet 128

    ABOUT US

    Jungle Journalist Media Limited

    Jungle Journalist Media Limited

    Jungle Journalist is an online news and information resource centre dedicated to accurate and timely news reports.

    Read More >>

    CONNECT WITH US

    SECTIONS

    • AGRICULTURE
    • BIZARRE
    • BREAKING
    • BUILDING & PROPERTIES
    • COLUMNIST
    • COMMUNITY REPORTS
    • ECONOMY & BUSINESS
    • EDUCATION
    • ELECTRICITY
    • ENTERTAINMENT
    • GAMES & SPORTS
    • HEALTH & FOOD
    • HOLIDAYS
    • INDIGENOUS REPORTS
    • INTERNATIONAL / DIASPORA
    • LAW & HUMAN RIGHTS
    • LEGISLATION
    • MEDIA INDUSTRY
    • MONEY & BANKING
    • NATIONAL
    • NEWS
    • NIGER DELTA
    • NORTH
    • OBITUARY
    • OIL & GAS
    • OPINION
    • PHOTOS / VIDEOS
    • POLICE / CRIME
    • POLITICS
    • RELIGION & WORSHIP
    • SCIENCE / TECHNOLOGY
    • SECURITY / MILITARY
    • SOCIAL MEDIA
    • SOUTH-EAST
    • SOUTH-SOUTH
    • SOUTH-WEST
    • TRADITION & CULTURE
    • TRANSPORT & AVIATION
    • WOMEN & CHILDREN
    • YOUTH
    No Result
    View All Result

    NEWS SOURCES

  • Punch
  • Nigerian Tribune
  • The Nation
  • Thisday
  • DailyTrust
  • The Sun
  • Daily Independent
  • PM News
  • Vanguard
  • Premium Times
  • Sahara Reporters
  • The Guardian
  • Leadership
  • Daily Times Of Nigeria
    • About
    • Advertise With Us
    • Privacy Policy

    © 2021 Jungle Journalist Media Limited - Web Designed by AfeesHost.

    No Result
    View All Result
    • NEWS
    • POLITICS
    • ECONOMY & BUSINESS
    • GAMES & SPORTS
    • EDUCATION
    • ENTERTAINMENT
    • HEALTH & FOOD
    • NIGER DELTA
    • SECURITY / MILITARY

    © 2021 Jungle Journalist Media Limited - Web Designed by AfeesHost.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In