CBN Sets N15k Limit for Contactless Payments

 Central Bank Nigeria Sets N15k Limit for Contactless Payments 

Main Key Points:

1. Central Bank of Nigeria (CBN) sets N15,000 limit for each contactless payment.
2. Customers can spend up to N50,000 daily without entering their PIN or biometric info.
3. For bigger payments, normal “Know Your Customer” rules apply.

Table of Contents

• Central Bank’s New Rule
• The Reason for the Rule
• The Purpose of the New Rule
• In Conclusion

Central Bank’s New Rule

The Central Bank of Nigeria (CBN) has shared a new rule for contactless payments in the country. This rule starts from June 27, 2023.

Gatekeepers News tells us that the main bank has said that contactless payments in Nigeria will have a limit of N15,000 for each payment. Also, the most you can spend in a day is N50,000.

 

The Reason for the Rule

The goal of this rule is to make contactless payments safer and more convenient. Contactless payments use Near Field Communication (NFC) and Quick Response (QR) codes. These help customers to pay without touching the payment terminal or the merchant.

However, if a contactless payment is more than these limits, customers must give the right verification and authorization. They might need to enter their PIN or biometric info.

CBN has said that for these bigger payments, the normal “Know Your Customer” rules and limits will be used.

Also, if contactless payments are more than N50,000 in a day, customers must use contact-based technology. This means putting in or swiping the card on the payment terminal.

The Purpose of the New Rule

The CBN has said that the new payment limits go with its mission to make a safe and efficient payment system in Nigeria. The bank wants to protect the interests of consumers and other people in the industry.

The CBN also shared detailed rules about contactless payments in Nigeria.

Part of the statement said, “After giving the Rules on Contactless Payments in Nigeria and seeing the risks, the Bank now defines limits for transactions. These are the amounts where verification and authorization are needed. The limits for contactless payments in Nigeria are:

• Daily Limit – N15,000
• Maximum Amount – N50,000

Payments that are more than these limits will need the right verification and authorization. The normal “Know Your Customer” rules and limits will apply for these. Anything above this daily limit must be done using contact-based technology.”

In Conclusion

CBN’s new rule means that people can now make contactless payments easily and safely. But they must remember the limits. For each payment, the limit is N15,000, and the most you can spend in one day is N50,000. For bigger payments, customers must follow the normal rules. This new rule is a big step in making payments safer and more convenient in Nigeria.