Banks’ committee earmarks N50m to push contactless payments

The Committee of E-Business Industry Heads (CeBIH) has earmarked a fresh N50m to deepen adoption of contactless payment in Nigeria. The committee, comprising all the deposit money banks, will be interfacing with the Central Bank of Nigeria (CBN) to also raise the contactless payment limit from the present N15,000. Chairman of CeBIH, Ajibade Laolu-Adewale, disclosed […]

The Committee of E-Business Industry Heads (CeBIH) has earmarked a fresh N50m to deepen adoption of contactless payment in Nigeria.

The committee, comprising all the deposit money banks, will be interfacing with the Central Bank of Nigeria (CBN) to also raise the contactless payment limit from the present N15,000.

Chairman of CeBIH, Ajibade Laolu-Adewale, disclosed this yesterday during the 2024 Third Quarter Industry Forum with the theme, “Navigating the Future of Contactless Payment: Adoption Challenges and Success Strategies”.

Daily Trust reports that contactless payments allow financial transactions to be completed without any physical contact between the payer and the recipient.

One example of this is the Tap-to-Pay service, where users simply tap their smart devices on enabled payment terminals to settle transactions.

The CBN, in 2022, introduced new limits on contactless payments in the country, raising the previous individual transaction limit of N5,000 and the daily cumulative limit of N30,000 to N15,000 and N50,000.

However, stakeholders believe going by the naira devaluation and the consistent inflationary pressure, the N15,000 payment limit needs to be raised for users to make meaningful purchases using the contactless payment system.

Laolu-Adewale, who recently took over the leadership of the committee with membership cutting across virtually all deposit money banks (DMBs), said the limit was kept at N15,000 at a time a dollar was exchanged for N200.

He stressed the need for all stakeholders to come together to work towards increasing the limit, saying the CeBIH on its part would be committing N50m to push the adoption of contactless payment.

He said, “Contactless payment is more than just a trend, it represents a fundamental shift in how we conduct transactions. The promise of this technology lies in its ability to offer unparalleled convenience, speed and security.

“With a simple tap or wave of hand, consumers can complete their transactions quickly, enhancing their overall experience and aligning with demands of the fast paced world. While contactless payments offer enhanced security features, the rise of new technology also brings new risk.

“To manage this risk, protecting against fraud and data breakage is paramount. We must continually update and fortify our security measures to safeguard our customers.”

Managing Director of Providus Bank Limited, Walter Akpani, represented by the bank’s Chief Risk Officer, Mr. Olugbile Erinwusi, proposed that the N15,000 limit could be increased to N50,000, while calling for collaboration with the internet service providers (ISPs), telecom companies, among others, to deepen the adoption.

He also suggested the introduction of tokenisation features, biometric and two-factor verification to enhance the safety and security of contactless payment.

Senior Director, Product Solutions Visa, Sub-Saharan Africa, Mesele Nkebet, and Founder of Netplusdotcom, Wole Faroun, represented by Sam Onwuekwe, in their separate presentations, said Nigeria must key into the future by adopting contactless payment.