By Abdallah el-Kurebe
On July 16, 2923, Nigeria’s apex bank, the Central Bank of Nigeria (CBN), upgraded the eNaira by introducing a chip-enabled Near Field Communication (NFC) device into the electronic currency. The feature will enhance the use of the eNaira by Nigerians who do not have smart phones or access to the Internet.
The technology will enable the exchange of data between devices of over a 10 cm distance, where owners of the eNaira wallet could transact financial businesses with little or no human contact with the aid of tags attached to their phones.
According to a Deputy director in the apex bank, Mr. Joseph Angaye, with the introduction of the NFC device, the eNaira will provide additional services, including facilitating payment even when there’s no network.
It is important to know that the Central Bank Digital Currency (CBDC) has become a new global concept, with Nigeria being one of the early adopters of CBDC, and the need for eNaira’s frequent upgrade.
While the eNaira, among other things, will help to promote financial inclusion, reduce congestion in the infrastructure, many other advantages are found in the use of eNaira in transactions.
But how much more do Nigerians stand to gain from the NFC device in their transaction with the eNaira?
The NFC devices can play several major roles in enhancing the Central Bank of Nigeria’s (CBN) eNaira, and we can give a few key roles:
Contactless Payments: NFC enables contactless payments, allowing users to make transactions by simply tapping their NFC-enabled devices (such as smartphones or cards) on compatible payment terminals. This technology can facilitate quick and convenient payments, enhancing the user experience.
Peer-to-Peer Transfers: NFC can facilitate peer-to-peer transfers by enabling devices to establish a secure connection and transfer funds directly between them. This capability allows individuals to send and receive money easily without the need for physical cash or complex banking processes.
Secure Authentication: NFC devices can enhance the security of eNaira transactions by providing secure authentication methods. For example, NFC can be used to enable two-factor authentication, where users can authenticate their transactions using their NFC-enabled devices in combination with other authentication factors like passwords or biometrics.
Access to Financial Services: NFC-enabled devices can serve as a means for individuals to access various financial services. For instance, users can link their bank accounts or digital wallets to their NFC devices, enabling them to manage their finances, check balances, and conduct transactions through eNaira-compatible applications or platforms.
Loyalty Programs and Rewards: NFC can be utilized to support loyalty programs and reward schemes associated with eNaira transactions. By integrating NFC technology, businesses and merchants can offer rewards, discounts, or loyalty points to customers who use eNaira for their purchases, thereby encouraging its adoption and usage.
Government Services: NFC devices can be employed to enhance access to government services related to eNaira. For instance, individuals can use their NFC-enabled devices to securely interact with government platforms for tax payments, social welfare disbursements, or other financial interactions with government entities.
Therefore, the NFC devices can play crucial roles in enhancing the functionality, security, and convenience of the CBN’s eNaira by enabling contactless payments, peer-to-peer transfers, secure authentication, access to financial services, loyalty programs, and facilitating interactions with government services.
