CBN Issues Fresh Guidelines On Contactless Payment

CBN Issues Fresh Guidelines On Contactless Payment

The Central Bank of Nigeria (CBN) has issued fresh guidelines for contactless payments in Nigeria. According to a circular with reference number, PSM/DIR/PUB/CIR/001/039, signed by the Director of the Payments System Management Department, Musal Simon, the guidelines were conceived to ensure that participants in contactless payments implement appropriate risk management measures, while keeping to best relevant standards.

The apex bank said the step was in furtherance of its efforts to standardise operations in the payments system, while encouraging the deployment of innovative products and sustaining the financial system stability.

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Contactless payment, which involves the consummation of financial transactions without physical contact between the payer and the acquiring devices, has been identified as an innovative payment option for the safe and efficient conduct of payments. All banks other financial institutions and payment service providers are required to ensure strict compliance with the guidelines.

In a related circular with reference number, PSM/DIR/PUB/CIR/001/048, the Bank said following the issuance of the guidelines on contactless payments in Nigeria and in cognisance of the risks associated with contactless payments, limits for contactless payments through accounts/wallets were pegged at N15,000 for each transaction and N50,000 for daily cumulative limit.

Higher-value contactless payments are transactions that exceed the set limits, which the Bank said would require appropriate verification and authorisation.