CBN issues guidelines on contactless payments
The Central Bank of Nigeria (CBN) has issued Draft Guidelines on Contactless Payments. The new guidelines indicated that all such transactions must be linked to accounts with Bank Verification Numbers
In a circular referenced: PSM/DIR/PUB/CIR/01/040 and dated October 17, 2022, the apex bank said that the guidelines were part of its efforts to standardise operations in the payments system and to sustain the system’s stability in the country’s banking industry.
Contactless payments involves the consummation of financial transactions without physical contact between the payer and acquiring devices which have been identified as an innovative option for the safe and efficient conduct of low-value large volume payments.
It said that the draft guidelines were “conceived to ensure that participants in the contactless payments implement appropriate risk management processes and measures while keeping to best relevant standards.”
According to the circular, only institutions licensed by the CBN shall serve as acquirers.
It also stipulated that acquirers who engage in contactless payments in Nigeria must ensure that all their contactless devices were connected to an account or Bank Verification Number and ensure that they adhered strictly to the set contactless transaction limits.
In addition, acquirers who engage in contactless payments “Shall ensure that their applications, instruments, tokens, and devices meet current standards and specifications for contactless payments.”
According to CBN, the draft guidelines were being exposed to banks, other financial institutions, and the general public for their input which should reach the Director, Payments Systems Management Department, latest by November 5, 2022.
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