…By Dorcas Funmi for TDPel Media. The Central Bank of Nigeria (CBN) has introduced a daily limit of N50,000 on contactless payments made through bank accounts or digital wallets.
This development was announced in a circular titled “Transaction Limits on Contactless Payments,” signed by Musa Jimoh, the Director of the Payment System Management Department at the CBN.
The apex bank has also set a maximum amount of N15,000 per transaction for contactless payments.
The CBN justified these limits by citing the risks associated with contactless payments and the need for verification and authorization for higher-value transactions.
The circular stated that transactions exceeding the specified limits would require appropriate verification and authorization, adhering to the existing Know Your Customer (KYC) requirements and limits on electronic payment channels.
Transactions exceeding the daily cumulative limit should be conducted using contact-based technology.
The CBN clarified that contactless technology refers to a payment method that allows transactions without physical contact with devices.
It provides users with convenient and efficient cashless options.
Examples of contactless payment instruments include prepaid, debit and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronic devices.
Contactless-enabled payment terminals interact with these devices to facilitate payments.
The introduction of transaction limits on contactless payments aims to balance the convenience of contactless technology with the need for security and control in electronic payments.
It enables users to make quick and hassle-free payments while ensuring appropriate safeguards are in place.
RTThe CBN’s decision to impose daily limits on contactless payments reflects its commitment to regulating and monitoring electronic payment systems in Nigeria, ensuring the safety and integrity of financial transactions.
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