The Central Bank of Nigeria (CBN) has set N50,000 daily cumulative limit on contactless payments either through bank accounts or digital wallets, also N15,000 per transaction daily. 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.
In a circular on Tuesday, signed by Mr. Musa Jimoh, the Director of the CBN Payments System Management Department, the lender said due to the risks associated with contactless payments, “verification and authorization would be required for transactions above the limits”.
“Following the issuance of the guidelines on contactless payments in Nigeria and in cognizance of the risks associated with contactless payments, the bank, hereby, defines transaction limits above which verification and authorization 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 authorization.”
The apex bank further stated that 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 CBN added.
This is the latest development in a string of recent policies instituted by the CBN. It recently directed commercial banks to collect and verify social media handles as part of their Know-Your-Customer (KYC) procedures.
The CBN had in October 2022 released a ‘Draft Guidelines for Contactless Payments in Nigeria, ‘which provides minimum standards and requirements for the operations of contactless payments in Nigeria.
