The Central Bank of Nigeria recently established a policy limiting contactless payments. The announcement came on Tuesday in two circulars signed by Musa Jimoh, Director of the CBN's Payments System Management Department. This policy is coming just after the CBN requested all banks to get the social media handles of all their customers.
The first circular which the CBN released covers the issue of contactless payment standards for banks, other financial institutions, and payment service providers.
The Central Bank of Nigeria developed the Guidelines for Contactless Payments in Nigeria as part of its attempts to simplify operations in the payments system while supporting the deployment of new products and preserving financial system stability.
Contactless payment, which involves the completion of financial transactions without physical contact between the payer and the acquiring devices, has been identified as an innovative payment option for the safe and efficient processing of low-value and high-volume payments.
The Guidelines were designed to guarantee that contactless payment participants adopt suitable risk management procedures and methods while adhering to the highest relevant requirements. The CBN stated that all banks, other financial institutions, and payment service providers must strictly adhere to the Guidelines.
Read more: https://www.investingport.com/cbn-reviews-limits-on-contactless-transactions/