CBN Sets N50k Daily Limit On Contactless Payments

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CBN Sets N50k Daily Limit On Contactless Payments

The Central Bank of Nigeria (CBN) has pegged daily transaction limits to N50,000 for contactless payment.

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.

It utilises near-field communication (NFC) technology, allowing users to simply tap or wave their payment device near the terminal to complete a transaction.

In October 2022, the financial regulator issued guidelines to commercial banks, financial institutions, and payment service providers on contactless payments in order to promote innovation in the sector.

In a circular on Tuesday, signed by Musa Jimoh, director, CBN payments system management department, the apex bank said due to the risks associated with contactless payments, “verification and authorisation would be required for transactions above the limits”.

“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 CBN further said for transactions above limits, “existing know-your-customer (KYC) requirements and limits on the electronic payment channels shall apply”.

“Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology,” the apex bank added.

On Sunday, the CBN directed commercial banks to collect and verify social media handles as part of their KYC procedures.