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CBN Sets N50,000 As Daily Limit On Contactless Payments

Published by Tope Fakinlede on June 29th, 2023.

CBN Sets N50,000 As Daily Limit On Contactless Payments

FCG reports that the Central Bank of Nigeria (CBN) has placed a N50,000 daily limit on contactless payments either through bank accounts or digital wallets.

FCG learned that CBN disclosed this on Tuesday in a circular titled, “Transaction Limits on Contactless Payments” signed by its Director, Payment System Management Department, Musa Jimoh.

The apex bank also limited the amount per transaction to N15,000 on contactless payments, FCG gathered

It stated: “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 authorization are required.

“Transaction limits for contactless payments through accounts/wallets in Nigeria shall 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 stated limits and shall require appropriate verification and authorization.

“For these transactions, existing Know Your Customer (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. Please be guided accordingly.”

It added: “Contactless technology is a technology that enables an alternative payment method whereby payment instruments are used without physical contact with devices. Contactless technology in payments provides easy, convenient, and efficient cashless options for users.

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