The Central Bank of Nigeria has issued a guideline placing a limit on contactless payment.
This was disclosed by the CBN in two circulars signed by the CBN’s Director, Payments System Management Department, Musa Jimoh.
The first circular contains guidelines for banks, other financial institutions, and payments service providers on contactless payments.
It read in part; “The Central Bank of Nigeria, in furtherance of its efforts to standardize operations in the payments system, while encouraging the deployment of innovative products and sustaining the financial system stability, developed the Guidelines for Contactless Payments in Nigeria.
“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 safe and efficient conduct of low- value and large-volume payments.
“The Guidelines was conceived to ensure that participants in contactless payments implement appropriate risk management processes and measures while keeping to best relevant standards.”
The bank noted that all banks, other financial institutions, and payments service providers are required to ensure strict compliance with the Guidelines.