CBN to introduce contactless payment guide that will turn phones, watches into PoS, ATMs

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.

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.

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

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.

Types of devices for contactless payment:

The instruments that will be used for contactless payment include:

1. Stickers

2. Fobs

3. Wearable devices

4. Tokens Mobile electronic devices