CBN Eyes Seamless ‘Invisible Payments’, Raises Concerns Over Data Privacy Gaps

The Central Bank of Nigeria (CBN) has revealed plans to introduce and expand the use of “invisible payments” across the country’s financial ecosystem, while cautioning that existing weaknesses in data protection and governance could pose significant risks to consumers.

The initiative is part of the Nigeria Payments System Vision 2028 (PSV 2028), a strategic roadmap aimed at accelerating digital payment adoption, improving financial inclusion, and enhancing the efficiency of transactions nationwide.

Invisible payments refer to transactions that take place with little or no direct user involvement. Powered by technologies such as biometric verification, embedded finance, artificial intelligence, and connected devices, the system is designed to make payments faster and more convenient by reducing the need for repeated manual authorisation.

According to the CBN, the future of financial transactions will increasingly rely on automation and seamless payment experiences. The regulator believes the technology could transform how Nigerians pay for goods and services, particularly as digital commerce continues to expand across the country.

Despite the opportunities presented by the innovation, the apex bank has highlighted concerns about inadequate data protection measures within the digital payments space. It warned that gaps in data governance could expose consumers to privacy breaches, cyberattacks, and the misuse of sensitive financial information if not properly addressed.

To strengthen confidence in the evolving payments ecosystem, the CBN has called on banks, fintech firms, payment service providers, and other stakeholders to improve compliance with data protection regulations and adopt stronger cybersecurity measures.

The regulator has also introduced policies aimed at improving oversight of digital transactions. Among them is a directive requiring all payment transaction data generated in Nigeria to be stored locally beginning January 1, 2027. The move is expected to enhance data security, improve regulatory monitoring, and reduce dependence on foreign data infrastructure.

In addition, financial institutions involved in digital payment services will be required to disclose their Ultimate Beneficial Owners (UBOs) and maintain updated ownership records. The measure is intended to boost transparency, strengthen accountability, and reduce potential risks within the industry.

Industry experts say invisible payments could improve customer experience, support financial inclusion, and drive further growth in Nigeria’s digital economy. However, they stress that strong consumer protection policies, reliable identity verification systems, and effective cybersecurity frameworks will be essential to ensuring the technology is adopted safely.