The Central Bank of Nigeria (CBN), has nailed contactless daily transaction limits to N50,000 payment.
Platforms such as pre-paid, debit/credit cards, key fobs, mobile electronic devices, and wearable devices are Contactless payments used as a secure and convenient method of making transactions without physical contact between a payment device.
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 signed on Tuesday by the Director, CBN payments system managements department, Musa Jimoh, the apex bank said due to the risks associated with contactless payments, “verification and authorisation would be required for transactions above the limits”.
“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.
