CBN Sets Limit for Contactless Payment

The Central Bank of Nigeria (CBN) has set N15,000 limit for contactless payment.

Contactless payment system is a technology that enables an alternative payment method whereby payment instruments are used without physical contact with the payment channels.

In a new guideline released, the bank said daily cumulative limit should not exceed N50,000 and transactions above the limit will require additional Know Your Customer (KYC) documentations and authorisations.

In  a circular to banks and other financial institutions, CBN Director, Payment Systems Management Department, Musa Jimoh, said  limits above this target should be transacted using contact-based technology.

CBN Deputy Director, Payment Systems Management Department, Adefuye Adeyemi, had at a meeting with financial reporters in Calabar, the Cross River State capital, said the introduction of contactless payment is another tool the apex bank will introduce before December 31 to mitigate any inconvenience that may arise when the old notes make way for the new ones.

Adeyemi said: “Contactless technology payments will provide easy, convenient and efficient cashless options for users and reate shorter queues at checkout points. The instruments that will be used for contactless payment include pre-paid debit and credit cards, stickers, fobs, wearable devices, tokens and mobile electronics devices.

“An interesting feature of contactless payment is the introduction of Free on board (FOB). In this case the risk of loss shifts from the buyer to seller.

“The contactless payment system is more secure than traditional payment methods, thus giving customers peace of mind; it will reduce printing of currency, thus saving the regulator cost of printing and managing currency in circulation; and it reduces spread of contagious diseases during payment due to the lack of contact.”