The Central Bank of Nigeria (CBN) has set a daily transaction limit of N50,000 for contactless payment.
This according to the apex bank a secure and convenient method that enables transactions without physical contact.
Contactless payments involve using payment devices like prepaid, debit, and credit cards, key fobs, mobile electronic devices, and wearables, utilizing near-field communication (NFC) technology.
By tapping or waving their payment device near the terminal, users can complete transactions effortlessly.
The CBN had issued guidelines to encourage innovation in the sector in October 2022. It directed commercial banks, financial institutions, and payment service providers on contactless payments.
In a recent circular signed by Musa Jimoh, the director of CBN’s payments system management department, the apex bank emphasized the need for verification and authorization for transactions exceeding the specified limits due to associated risks with contactless payments.
“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 bank 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.
The CBN has instructed commercial banks, as part of their Know Your Customer (KYC) procedures, to collect and verify social media handles. They issued this directive on Sunday.