In a new guideline released yesterday, the apex bank said daily cumulative limit should not exceed N50,000 and transactions above the limit will require additional Know Your Customer (KYC) documentations and authorizations.
In a circular to banks and other financial institutions, CBN Director, Payment Systems Management Department, Musa Jimoh, said limits above this target should be transacted using contact-based technology.
CBN Deputy Director, Payment Systems Management Department, Adefuye Adeyemi, had at a meeting with financial journalists in Clabar, Cross River State, he said the introduction of contactless payment is another tool the apex bank will introduce before December 31 to mitigate any inconvenience that may arise when the old notes make way for the new ones.
“Contactless technology in payments will provide easy, convenient, and efficient cashless options for users. Create shorter queues at checkout points. The instruments that will be used for contactless payment include pre-paid debit and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronics devices’’.
“An interesting feature of contactless payment is the introduction of Free on board (FOB). In this case the risk of loss shifts from the buyer to seller”, he said.
Identifying some of the benefits of contactless payment which include ease of payments, speed and convenience to consumers’ in-person transactions using their phone, Adefuye noted that this would enhance customer experience.
