By Business A.M.
The Central Bank of Nigeria (CBN) has released new guidelines for contactless payments in Nigeria which limits single transaction payments through accounts/wallets to N15,000 and daily cumulative transactions to N50,000.
This was contained in a circular signed by Musa Jimoh, addressed to banks and other financial institutions and payment service providers the CBN director Payments and Systems management Department,addressed to all banks,financial institutions and payment service providers across the country.
The circular, dated June 27 2023, partly read; “Following the issuance of the Guidelines on Contactless Payments in Nigeria and in cognisance of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorisation are required.”
According to the CBN, higher value contactless payments which exceed the limits shall require appropriate verification authorisation. For these transactions, it stated that existing KYC requirements and limits on the electronic payment channels shall apply, adding that limits above the stipulated daily cumulative limit shall be conducted using contact-based technology.
The guideline further stated that banks shall determine appropriate transaction and daily cumulative limits for contactless payments from time to time, while stakeholders shall be permitted to set limits in line with the bank’s limits.
The CBN explained that the new transaction limits for contactless payments through accounts and wallets in Nigeria, is to safeguard Nigeria’s financial payment system.
Contactless payments are transactions done without physical contact with devices. Pre-paid, debit and credit cards, tokens, mobile electronic devices, stickers, fobs and wearable devices can be used for contactless payments.
Individuals using the contactless payment options can carry out transactions below the limit without having to provide their pin or biodata.
However, for transactions above the set limit, the user will be requested to provide their pin and biodata, while the Know Your Customer (KYC) requirements would also be applied by financial institutions in Nigeria.
