The Central Bank of Nigeria, CBN has released guidelines for contactless payments in the country, limiting the daily cumulative transaction limit via the channel to N50,000 while a single transaction limit is N15,000.

This was contained in a circular signed by the CBN Director, Payments and Systems management Department, Musa Jimoh.

According to the circular, higher value contactless payments which exceed the limits, will require appropriate verification authorization.

Acting CBN Governor,Mr Folashodun Shonubi

For such transactions, the guideline stated that, existing Know Your Customer, KYC requirements and limits on the electronic payment channels would apply.

While limits above the stipulated daily cumulative limit will be conducted by using contact-based technology.

The guideline also stated that banks will determine appropriate transaction and daily cumulative limits for contactless payments from time to time.

Also, contactless payment transactions below the stipulated limits per transaction, may not require customers authorization.

However, higher-value contactless payments shall require customer verification such as PIN, mobile code, biometric identifier.

For customers who wished to perform transactions above the maximum limit, CBN said they could request in writing to the bank and provide indemnity that reflects the risks involved.

The apex bank noted that it had released the guidelines in furtherance of its mandate to ensure the safety and stability of the Nigerian Financial System and to promote a resilient and stable payments system.

Contactless technology enables an alternative payment method whereby payment instruments are used without physical contact with devices, which is easy, convenient and efficient cashless.

Story: Hilda Katu