A daily cap of N50,000 has been imposed by the Central Bank of Nigeria (CBN) on contactless payments made using digital wallets or bank accounts.
The apex bank also restricted contactless payments to a maximum of N15,000 per transaction.
In a circular headed “Transaction Limits on Contactless Payments,” the CBN made this information public yesterday.
“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 authorisation are required,” read the circular signed by Mr. Musa Jimoh, Director of the CBN’s Payment System Management Department.The following transaction thresholds apply to contactless payments made in Nigeria using accounts or wallets: The maximum transaction limit is N15,000, and the maximum daily cumulative limit is N50,000.
“Higher-value contactless payments are transactions that exceed the above stated limits and shall require appropriate verification and authorisation.
“For these transactions, 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. Please be guided accordingly.”
The CBN yesterday released ‘Guidelines for Contactless Payments in Nigeria’, which states that contactless technology “enables an alternative payment mode whereby payment instruments are used without physical touch with devices. Users have quick, convenient, and effective cashless options thanks to contactless technology.
“Pre-paid, debit, and credit cards, stickers, fobs, wearable technology, tokens, and mobile electronic devices are examples of contactless payment instruments,” it continued. To make payments easier, contactless payment devices communicate with contactless payment terminals.