CBN to Introduce Contactless Payment Guide That Will Turn Phones, Watches into PoS, ATMs

CBN to Introduce Contactless Payment Guide That Will Turn Phones, Watches into PoS, ATMs

  • CBN is preparing to issue guidelines to promote the safe and efficient use of contactless payments in Nigeria
  • Guidelines cover technical and operational requirements, security measures, and standards for the issuance and acceptance of contactless payment
  • The move is part of the CBN's effort to modernise the cashless payment policy in the country

The Central Bank of Nigeria (CBN) has announced that it will be issuing guidelines for using contactless payment systems in the country.

The guidelines are part of CBN's overall objective to promote the safe and efficient use of cashless payments.

Contactless payment
Make payment with a mobile phone. Photo credit: FG Trade
Source: Facebook

Adeyemi Adefuye, Deputy Director of the Payment System Management Department of the CBN, made this known in Calabar, Cross River State, recently.

He explained that the guidelines would cover the technical and operational requirements for implementing contactless payment systems and the security measures needed to protect customers' information, the Nation reports

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Adefuye noted:

Contactless technology in payments will provide easy, convenient, and efficient cashless options for users. Create shorter queues at checkout points.

Benefits of contactless payment

Adefuye identified some of the benefits of contactless payment, including ease of payments, speed and convenience to consumers’ in-person phone transactions, thus enhancing customers' experience.

He also said the payment method will increase spending, revenue and profitability, which will grow the retail business leading to an increase in GDP

Adefuye added:

"An interesting feature of the contactless payment is the introduction of Free on board (FOB). In this case, the risk of loss shifts from the buyer to seller.
“Contactless payments offer increased security and reduce printing costs while minimising the risk of spreading contagious diseases during transactions.

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Types of devices for contactless payment

The instruments that will be used for contactless payment include:

  • Stickers
  • Fobs
  • Wearable devices
  • Tokens
  • Mobile electronic devices

Nigerian Breweries blames CBN

Meanwhile, in another report, Nigerian Breweries disclosed that it experienced a decline in revenue of N10.71 billion in its Q1 2023 financial result.

The NB board attributed the drop in revenue to several challenges, including CBN's naira redesign policy.

The CBN announced the withdrawal of the old 1000, 500, and 200 naira notes in February, which led to a severe cash scarcity.


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