CBN Sets N50k Daily Limit On Contactless Payments

Contactless payments are a safe and convenient way to conduct transactions between payment devices such as pre-paid, debit, and credit cards, key fobs, mobile electronic devices, and wearable gadgets.

It employs near-field communication (NFC) technology, allowing customers to conduct a transaction by just tapping or waving their payment device near the terminal.

In order to stimulate innovation in the area, the financial authority published recommendations on contactless payments to commercial banks, financial institutions, and payment service providers in October 2022.

In a circular on Tuesday, signed by Musa Jimoh, director, of the CBN payments system management department, the apex bank 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 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.

The CBN issued a directive to commercial banks on Sunday to collect and verify social media handles as part of their KYC procedures.