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The Central Bank of Nigeria (CBN) has imposed a N50,000 daily payment limit on any contactless transaction limits.
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The apex bank announced in a recent circular signed by the Director, CBN Payments System Managements Department, Musa Jimoh, that due to the risks associated with contactless payments, “verification and authorisation would be required for transactions above the limits.”
Adding that “limits above this stipulated daily cumulative limit shall be conducted using contact-based technology.”
Contactless payments leverage near-field communication (NFC) technology to allow users to simply tap or wave their payment device near the terminal to complete a transaction.
Contactless payments bring ease and speed to payment transactions but not without attended risks.
The CBNstates: “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.”
Pre-paid, debit/credit cards, key fobs, mobile electronic devices, and wearable devices are among platforms using contactless payments to enable transactions without physical contact between a payment device.
The CBN first issued guidelines in October 2022 to commercial banks, financial institutions and payment service providers on contactless payments in order to promote innovation in the sector.
