The Central Bank of Nigeria (also known as the CBN) has imposed a daily cap of N50,000 on the amount of money that can be transferred contactlessly using bank accounts or digital wallets.
The country’s central bank imposed a cap of N15,000 per transaction for payments made using contactless technology.
This information was made public yesterday by the Central Bank of Nigeria in a circular titled “Transaction Limits on Contactless Payments.”
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. The circular was signed by the Director of the Payment System Management Department at the CBN, Mr. Musa Jimoh.
The following is a list of the transaction limits that will apply to contactless payments made in Nigeria using accounts or wallets: There is a N15,000 cap on the maximum amount that can be spent in a single transaction, and a N50,000 cap on the daily cumulative maximum.
“Higher-value contactless payments are transactions that exceed the aforementioned limits and shall require appropriate verification and authorisation. These payments can only be made using a card that supports contactless payment technology.
“In the case of these transactions, the already established Know Your Customer (KYC) requirements and limits on the various electronic payment channels are going to be enforced.
“Limits that are higher than this stipulated daily cumulative limit shall be carried out utilising technology that relies on contact. Kindly take the necessary steps in accordance.”
“Contactless technology is a technology that enables an alternative payment method whereby payment instruments are used without making physical contact with devices,” as stated in the ‘Guidelines for Contactless Payments in Nigeria’ that were also issued yesterday by the CBN. Users now have access to cashless payment options that are simple, hassle-free, and highly efficient thanks to contactless technology in the payments industry.
It went on to say that some examples of contactless payment instruments include things like pre-paid, debit, and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronic devices. Payments can be made more easily thanks to the interaction between contactless-enabled payment terminals and contactless payment devices.
