CBN issues guidelines for contactless payment providers in Nigeria

The Central Bank of Nigeria (CBN) has published an exposure draft for its guidelines for contactless payment providers in Nigeria.

The apex bank disclosed this in a circular titled Exposure Draft To The Guidelines For Contactless Payments Nigeria, seen by Nairametrics.

According to the apex bank, the Guidelines were developed to make sure that individuals who participate in contactless payments take the proper risk management steps and adhere to the highest industry standards.

Part of the circular by the CBN said, “The Central Bank of Nigeria furtherance of its efforts to standardise operations in the payments system while encouraging the deployment of innovative products and sustain financial system stability developed the draft Guidelines Contactless Payments in Nigeria.

“The draft Guidelines are hereby exposed to all banks, other financial institutions, payments service providers and the general public for comments. The comments should reach the Director, Payments System Management Department, CBN not later than November 5, 2022.”

The circular further explained that Contactless payments involve the consummation of financial transactions without physical contact between the payer and the acquiring devices.

During Contactless Payments, there is no need to handle cash or a card during transactions. Customers may not have to engage physically with a point-of-sale (POS) system, enter a PIN, or sign a receipt.