CBN Set to turn Phones, watches into PoS, ATMs – See Details below.
The Central Bank of Nigeria (CBN) is making preparations to release guidelines aimed at promoting the safe and efficient utilization of contactless payments in the country.
These guidelines will encompass technical and operational requirements, security measures, and standards for both issuing and accepting contactless payments.
The initiative forms part of the CBN’s ongoing efforts to modernize the cashless payment policy in Nigeria, keeping pace with global advancements in payment technologies and enhancing the overall payment ecosystem.
Adeyemi Adefuye, the Deputy Director of the Payment System Management Department at the CBN, recently revealed this information in Calabar, Cross River State.
According to The Nation, he outlined that the forthcoming guidelines would encompass both the technical and operational prerequisites for implementing contactless payment systems, as well as the necessary security measures to safeguard customers’ information.
Adefuye emphasized the advantages of contactless payment, which include its ease, convenience, and efficiency, resulting in shorter queues at checkout points. He further highlighted that contactless payment enhances customers’ in-person phone transactions, contributing to an improved overall experience.
Moreover, Adefuye emphasized that this payment method stimulates spending, revenue, and profitability, ultimately leading to the growth of the retail sector and an increase in GDP.
Notably, Adefuye mentioned the introduction of Free on Board (FOB) as an interesting aspect of contactless payment, wherein the risk of loss shifts from the buyer to the seller.
Additionally, he pointed out that contactless payments offer heightened security, reduce printing costs, and minimize the risk of spreading contagious diseases during transactions. The devices suitable for contactless payment encompass stickers, fobs, wearable devices, tokens, and mobile electronic devices.