The Central Bank of Nigeria (CBN) has announced new transaction limits for contactless payments in the country, effective from June 27, 2023.
According to the CBN’s guidelines, contactless payments through accounts or wallets in Nigeria will have a transaction limit of N15,000 and a daily cumulative limit of N50,000.
This means that customers can make contactless payments of up to N15,000 per transaction and up to N50,000 per day without entering their PIN or biometric verification.
Contactless payment involves the consummation of financial transactions without physical contact between the payer and the acquiring devices. Examples of contactless payment are pre-paid, debit and credit cards, stickers, wearable devices, tokens, and mobile electronic devices.
The development was contained in a circular signed and issued by Musa Jimoh, the director Payment Systems Management Department.
The move is aimed at enhancing the security and convenience of contactless payments, which use technologies such as Near Field Communication (NFC) and Quick Response (QR) codes to enable customers to pay without physical contact with the merchant or the payment terminal.
However, for higher-value contactless payments that exceed these limits, customers will be required to provide appropriate verification and authorisation, such as their PIN or biometric data.
The CBN said that for these transactions, the existing Know Your Customer (KYC) requirements and limits on the electronic payment channels will apply.
The CBN also stated that contactless payments above the stipulated daily cumulative limit of N50,000 will have to be conducted using contact-based technology, such as inserting or swiping the card on the payment terminal.
The CBN said that the new transaction limits are in line with its mandate to promote a safe and efficient payment system in Nigeria and to protect the interests of consumers and other stakeholders in the industry.
The statement reads: “Following the issuance of the Guidelines on Contactless Payments in Nigeria and in cognisance of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorisation are required. Transaction limits for contactless payments through accounts/wallets in
Nigeria shall be as follows:
Daily Cumulative Limit – N15,000
Maximum Amount – N50,000
“High-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorization. Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology,”
For these transactions, existing 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.”