CBN Gives PoS Operators 30 Days to Route Transactions Through Licensed Aggregators

The Central Bank of Nigeria (CBN) has issued a directive requiring all Point of Sale (PoS) operators to route their transactions through licensed Payment Terminal Service Aggregators (PTSAs). This move, outlined in a circular posted on the CBN’s official website on Thursday, aims to enhance the monitoring and management of electronic transactions across the country.

In a bid to ensure transparency and efficiency, the CBN had earlier granted a PTSA license to Nigeria Interbank Settlement System Plc (NIBSS) in 2011. However, concerns about channeling all PoS transactions through a single aggregator prompted the central bank to issue a second PTSA license in April 2024 to Unified Payment Services Limited, providing an alternative aggregator for routing transactions.

The new directive mandates that all acquirers—institutions responsible for processing payments via PoS terminals—must now route transactions through either of the two licensed aggregators. This applies to transactions conducted via both physical and electronic PoS terminals at merchant and agent locations.

Moreover, licensed processors are expected to integrate their systems with both PTSAs, granting acquirers the flexibility to choose their preferred service provider. Payment terminal service providers (PTSPs), responsible for deploying and managing PoS terminals, are also required to ensure their devices and applications are compatible with the chosen PTSA.

As part of this initiative, PTSPs must submit monthly reports to the CBN, detailing the number of merchants and agents they serve and the PTSA services they use. Similarly, each PTSA is required to provide a monthly report of all processed transactions, which must be submitted to the Director of the Payments System Management Department within seven days of the end of each month.

The CBN has given PoS operators a 30-day window to comply with the new directive, warning that non-compliance will attract sanctions. This move follows a recent mandate by the Corporate Affairs Commission, which required PoS operators in Nigeria to register with the commission by September 5, 2024.

The CBN’s new policy reflects its ongoing efforts to streamline electronic payment systems in the country and ensure a robust regulatory framework for managing financial transactions.

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