In a recent circular titled “Transaction Limits on Contactless Payments,” the Central Bank of Nigeria (CBN) has introduced new regulations concerning contactless payments made through bank accounts or digital wallets.
Effective immediately, individuals will be subject to a daily limit of N50,000 for contactless payments, while the maximum amount per transaction will be capped at N15,000.
The CBN’s directive, signed by Mr. Musa Jimoh, the Director of the Payment System Management Department, highlights the risks associated with contactless payments and emphasizes the need for verification and authorization for transactions exceeding the defined limits.
Any contactless payment exceeding N15,000 will require appropriate verification and authorization, adhering to the existing Know Your Customer (KYC) requirements and electronic payment channel limits.
The guidelines for contactless payments, also issued by the CBN, describe contactless technology as a means of conducting transactions without physical contact between payment instruments and devices.
This technology offers users convenient and efficient cashless options, allowing for easy payments through various instruments such as pre-paid, debit and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronic devices.
Payment terminals equipped with contactless technology facilitate these transactions by interacting with the corresponding payment devices.
It is important for individuals to note that any contactless payments exceeding the daily cumulative limit specified by the CBN must be conducted using contact-based technology.
The CBN’s aim in implementing these measures is to ensure the secure and responsible usage of contactless payments while promoting the adoption of cashless options across Nigeria.
As the Central Bank of Nigeria takes steps to regulate contactless payments, it is expected that these measures will contribute to a safer and more controlled financial ecosystem in the country.
Individuals and businesses are advised to familiarize themselves with the new guidelines and adhere to the prescribed transaction limits.
