A new study by Juniper Research has projected that the value of QR code payments will grow by 50% globally, rising from $5.4 trillion in 2025 to over $8 trillion in 2029.

The anticipated surge is attributed to the increasing national standardization of QR payment schemes and the expansion of Account-to-Account (A2A) payment initiatives.

This projection comes at a time when Nigeria’s Inter-Bank Settlement System (NIBSS) is ramping up efforts to deepen the adoption of the Nigeria Quick Response (NQR) payment system to accelerate the country’s transition to a cashless economy.

However, while QR code payments are expected to dominate in several regions, the report warns that Near-field Communication (NFC) payments could pose a challenge, particularly in North America and Europe, where Apple’s decision to open NFC technology to third-party apps may shift consumer preferences.

Despite growing competition from NFC payments, QR codes are projected to maintain their strong appeal due to their accessibility, affordability, and universal compatibility. According to Juniper Research, these features make QR code payments an attractive option for both businesses and consumers, particularly in developing markets where mobile penetration is high but traditional banking infrastructure remains underdeveloped.

The report highlights two major advantages of QR codes over NFC payments:

1. Lower operational costs – QR technology is significantly cheaper than traditional point-of-sale (POS) systems, reducing the financial burden on small businesses.
2. Broad device compatibility – Unlike NFC, which requires specialized hardware, QR codes can be scanned using any smartphone with a camera, making them a more versatile solution for merchants and consumers.

Daniel Bedford, the lead author of the study, underscored the significance of QR code payments in financial inclusion, particularly for small businesses and informal workers.

“QR code technology is cheaper and more accessible than traditional point-of-sale systems. This lowers the barrier to entry for smaller vendors, such as street vendors, drivers, and independent workers, enabling them to accept payments easily and driving financial inclusion,” Bedford stated.

The report advises payment providers to focus on tailoring their QR offerings to small and medium-sized enterprises (SMEs) to capitalize on this projected growth.

Nigeria’s Push for NQR to Strengthen Digital Payments

As QR code adoption rises globally, Nigeria is not left behind. Last week, NIBSS announced significant upgrades to its NQR payment system, enhancing its capabilities to offer faster and more secure digital transactions for businesses and individuals.

Speaking on the development, the Managing Director and CEO of NIBSS, Premier Oiwoh, emphasized that the NQR is poised to revolutionize Nigeria’s payment industry. He highlighted that transactions made via NQR are processed instantly, ensuring seamless settlements.

“Beyond the P2P, there is also E2P on the MQR, and most of the bank apps have it today. My dream is to have hawkers on the streets being able to present their QR in the form of an ID card and then make payment. Cash cannot be everywhere; what we are all looking for is payment.

You can also send your personal QR code to anybody to pay you rather than send an account number,” Oiwoh stated during the unveiling of the NQR upgrades.

These enhancements aim to further reduce cash dependence and improve transaction efficiency by enabling Person-to-Person (P2P) and Entity-to-Person (E2P) payments, expanding the system’s use cases.

The NQR system, introduced in March 2021 in collaboration with Nigerian financial institutions, is a key component of the country’s ongoing cashless policy. With Nigeria facing persistent cash shortages and challenges in financial inclusion, QR payments are increasingly being positioned as a solution for bridging the digital payment gap.

The system provides an easy-to-use and cost-effective alternative to traditional banking methods by allowing users to make payments simply by scanning a QR code. As more merchants, including small-scale vendors and informal traders, adopt the system, cash transactions are expected to decline, aligning with the Central Bank of Nigeria’s (CBN) financial inclusion goals.

Challenges and the Future of QR Payments in Nigeria

While the adoption of QR code payments in Nigeria presents immense potential, some challenges persist, including:

• Merchant Adoption – Many small businesses and informal traders still rely heavily on cash due to limited awareness and access to digital payment tools.
• Infrastructure and Internet Connectivity – QR payments require stable mobile networks, which can be a barrier in rural areas with poor internet access.
• Consumer Trust and Awareness – Many Nigerians remain skeptical of digital transactions due to concerns over fraud and cybersecurity threats.

However, the ongoing improvements to the NQR system signal a promising future. With continued investment in public awareness and infrastructure, QR code payments are expected to become a dominant force in Nigeria’s payment ecosystem, accelerating the transition towards a truly cashless economy.

Keystone Bank Limited is now officially owned by the Federal Government of Nigeria following a Lagos court ruling that dissolved its former shareholder, Sigma Golf Nigeria Limited.

The judgment, delivered on Tuesday, February 11, 2025, by the Lagos State Special Offences Court, sitting in Ikeja, was in response to a case filed by the Economic and Financial Crimes Commission (EFCC) over the fraudulent acquisition of Keystone Bank shares using government funds.

The case, which involved a former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and Sigma Golf, centers around the alleged diversion of N20 billion from AMCON through Heritage Bank to fund the acquisition of shares in Keystone Bank.

The development places Keystone Bank among the growing list of troubled banks in Nigeria, raising concerns about its future stability and operational efficiency, particularly as the banking sector faces intense scrutiny over governance failures, mismanagement, and liquidity crises.

During the court proceedings, the EFCC presented a six-count amended charge against Kuru and Sigma Golf Nigeria Limited, detailing how government funds meant for AMCON were funneled through Heritage Bank for illegally acquiring Keystone Bank shares. The prosecution alleged that the funds were unlawfully transferred, with the intent of taking control of the bank through fraudulent means.

Ahmed Kuru, the former AMCON boss, pleaded not guilty to the charges, while Sigma Golf’s Chairman, Umaru Modibbo, admitted guilt. In response, the EFCC’s lead counsel, Rotimi Oyedepo (SAN), informed the court that the commission had reached a plea bargain agreement with Sigma Golf.

As part of the agreement, the court ordered the forfeiture of all Sigma Golf’s rights, title, and interest in Keystone Bank to the Federal Government of Nigeria. The court also dissolved Sigma Golf Nigeria Limited and mandated the transfer of its 6.25 billion units of Keystone Bank shares, valued at N1 each, to the government.

The plea bargain agreement partly reads: “That upon the conviction of Sigma Golf Nigeria Ltd, all its rights, title, and interest in the one (1) unit of Keystone Bank Limited’s ordinary shares allotted to Alhaji Umaru Hamidu Modibbo, the current Chairman of the company, shall forthwith also be forfeited to the Federal Government of Nigeria, represented by the Economic and Financial Crimes Commission (EFCC).

“That in respect of the facts and circumstances of this case, the Complainant, the Federal Republic of Nigeria, agrees not to pursue criminal charges both now and in the future against Alhaji Umaru Hamidu Modibbo.”

The plea bargain agreement also protected Modibbo from future criminal prosecution related to the case, on the condition that he cooperates fully with any ongoing or future investigations, including providing testimony when required.

Following these developments, the court convicted Sigma Golf and ordered its dissolution, while the trial of the former AMCON boss, Ahmed Kuru, was adjourned to March 7 and April 16 & 17, 2025.

Keystone Bank Reacts, Confirms Government Takeover

Following the court ruling, Keystone Bank released an official statement confirming that it is now fully owned by the Federal Government. The bank clarified that the ruling was the outcome of a legal process initiated by the CBN and the EFCC, challenging the acquisition of the bank by its former shareholders.

Keystone Bank stated that the Central Bank of Nigeria (CBN) had earlier taken regulatory action on January 10, 2024, by dissolving the previous board and management due to “corporate governance breaches.” The bank explained that this court ruling brings much-needed clarity and stability to its ownership structure.

“This development marks a significant milestone in our journey, reinforcing our stability and paving the way for a seamless recapitalization process. With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability,” the bank said in its statement.

However, concerns remain about the bank’s financial health and operational stability.

Keystone Bank’s Troubled History and Inclusion Among Nigeria’s Struggling Banks

Keystone Bank’s current situation mirrors the struggles of other troubled banks in Nigeria that have faced regulatory interventions due to financial mismanagement and governance issues.

The bank was previously owned by the government under AMCON before being sold to Sigma Golf and Riverbank Investment in 2017 as part of AMCON’s bank resolution strategy. However, with this recent ruling, the bank has returned to government control under controversial circumstances.

This latest development raises questions about the bank’s financial position, especially in the wake of increasing regulatory scrutiny in the Nigerian banking sector. The return of Keystone Bank to government ownership suggests deeper financial distress, as it joins the list of banks struggling with corporate governance challenges.

The Nigerian banking sector has seen a wave of regulatory interventions in recent years, with the CBN stepping in to dissolve boards and take over banks in cases of financial mismanagement. The recent sack of Heritage Bank’s board and the ongoing struggles of Union Bank and Polaris Bank indicate that Keystone Bank is not alone in facing serious operational difficulties.

However, the EFCC’s case against Sigma Golf and the subsequent government takeover of Keystone Bank underscores the growing concerns about fraud, corruption, and regulatory breaches in Nigeria’s financial sector. With the banking industry facing increased scrutiny, stakeholders are worried about the potential instability caused by frequent government interventions and the recurrence of fraudulent acquisitions.

For Keystone Bank, the key challenge now lies in its recapitalization. The government will have to decide whether to restructure the bank for long-term stability or seek new investors for another privatization attempt.

Financial analysts believe that the situation could impact public confidence in the bank, especially as government-owned banks in Nigeria have historically struggled with inefficiencies and mismanagement. If not handled properly, Keystone’s current predicament could affect depositors’ confidence, investor interest, and the overall stability of Nigeria’s financial sector.