The Central Bank of Nigeria (CBN) has set an N50,000 limit for contactless payments (payments made without physical contact between a payment device, such as pre-paid, debit, and credit cards, key fobs, mobile electronic devices, and wearable devices).
The Director of the Payments System Management Department, Musa Jimoh, said the decision was taken due to the risks associated with contactless payments, “verification and authorization would be required for transactions above the limits”.
For transactions above limits, “existing know-your-customer (KYC) requirements and limits on the electronic payment channels shall apply”.
“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 15,000, daily cumulative limit N50,000.
“Higher-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,” the statement read.