The Central Bank of Nigeria (CBN) has set a transaction limit for contactless payments made through bank accounts and digital wallets.
In a circular, the apex bank also issued a guideline for contactless payments to banks, other financial institutions, and payment service providers.
Contactless payments are exactly what they sound like. It’s using debit or credit cards to pay for stuff by simply swiping the card next to the payment points. With contactless payments, you don’t need to use PINs or tokens, just swipe and go.
The daily cumulative transaction limit is set at ₦50,000 ($65.08), with a single transaction limit of ₦15,000 ($19.56). Transactions surpassing these limits are classified as higher-value transactions and will require verification and authorisation, accordingly. Furthermore, existing know-your-customer (KYC) requirements and limits on electronic payment channels will be applicable for such transactions.
Per the new guidelines, any transaction that surpasses the designated daily cumulative limits must be conducted using contact-based technology.
By issuing the guidelines, the CBN looks to fulfil its mandate of ensuring the safety and stability of the Nigerian financial system, and fostering a robust and secure payment system.
