CBN limits transactions via contactless payments to N50,000 per day

The Central Bank of Nigeria, CBN, has set a daily limit of N50,000 for contactless payments made via bank accounts or digital wallets.

The apex bank also set a maximum of N15,000 per transaction for contactless payments.

The CBN announced this in a circular titled “Transaction Limits on Contactless Payments” yesterday.

“Following the issuance of the Guidelines on Contactless Payments in Nigeria and in recognition of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorisation are required,” said Mr. Musa Jimoh, Director, Payment System Management Department, CBN.

“In Nigeria, transaction limitations for contactless payments via accounts/wallets should be as follows: Transaction limit maximum amount is N15,000 and daily cumulative limit maximum amount is N50,000.

“Higher-value contactless payments are transactions that exceed the above-mentioned limits and must be verified and authorized.”

“Existing Know Your Customer (KYC) requirements and limits on electronic payment channels will apply to these transactions.”

“Limits above the daily cumulative limit shall be enforced using contact-based technology.” Please follow my instructions.”

The CBN also released ‘Guidelines for Contactless Payments in Nigeria’ yesterday, stating that “contactless technology is a technology that enables an alternative payment method in which payment instruments are used without physical contact with devices.” Contactless payments provide users with simple, convenient, and efficient cashless options.

“Contactless payment instruments include pre-paid, debit, and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronic devices,” it says. To facilitate payments, contactless payment terminals interact with contactless payment devices.”