Cashless Policy: CBN makes plans on turning your phones, smart watches into PoS, ATMs

CBN to Introduce Guidelines for Contactless Payment Technology in Nigeria

The Central Bank of Nigeria (CBN) has revealed its plans to release guidelines for using contactless payment systems in the country.

The objective is to encourage the secure and efficient use of cashless payments. Adeyemi Adefuye, Deputy Director of the Payment System Management Department of the CBN, announced this development while speaking in Calabar, Cross River State.

According to the Nation, he explained that the guidelines would address the technical and operational requirements for implementing contactless payment systems.

Additionally, the guidelines will highlight security measures to safeguard customers' information.

Adefuye further highlighted the advantages of contactless payment. Firstly, it will offer easy and convenient cashless options for users. It will also reduce queues at checkout points.

Secondly, it will enhance customers' experience through speedy and convenient in-person phone transactions.

Additionally, the payment method is likely to increase spending, revenue and profitability, leading to growth in the retail business, and subsequently an increase in the GDP.

Furthermore, Adefuye identified an exciting feature of contactless payment called “Free on board (FOB),” where the risk of loss shifts from the buyer to the seller.

This feature is likely to attract more sellers to embrace the payment method. Contactless payments also offer increased security, reduce printing costs, and minimize the risk of spreading contagious diseases during transactions.