In furtherance of its regulatory policy measures to ensure financial system security and stability, the Central Bank of Nigeria (CBN) has set daily transaction limit for contactless payments at N50,000.
Contactless payments are a secure and convenient method of making transactions without physical contact between a payment device, such as pre-paid, debit, and credit cards, key fobs, mobile electronic devices, and wearable devices.
Contactless payments utilise near-field communication (NFC) technology, thereby enabling users to simply tap or wave their payment device near the terminal to complete a transaction.
The apex bank in a circular issued on Tuesday and signed by its Director, Payments System Management Department, Mr. Musa Jimoh, linked the policy measure to the risks associated with contactless payments, adding that based on the latest directive, verification and authorization would be required for transactions above the limits.
It further clarified: “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,” the circular reads.
“Transaction limits for contactless payments through accounts/wallets in Nigeria shall be as follows: transaction limit 15,000, daily cumulative limit N50,000.
“Higher-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorisation”, the circular added.
The CBN further stated that for transactions above limits, existing know-your-customer (KYC) requirements and limits on the electronic payment channels shall apply and that limits above the stipulated daily cumulative limit shall be conducted using contact-based technology.
A few days ago, the apex bank directed Deposit Money Banks (DMBs) to begin to obtain additional personal information from their customers, including their social media handles as part of their KYC procedures.
It would be recalled that in October last year, the CBN had issued guidelines to commercial banks, financial institutions, and payment service providers on contactless payments in order to promote innovation in the financial system.
