CBN Mandates PoS Transactions Through Licensed Aggregators
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has issued a directive requiring all acquirers to route all Point of Sale (PoS) transactions through Payment Terminal Service Aggregators (PTSAs).
This move aims to enhance the tracking and monitoring of electronic transactions in Nigeria.
In a circular issued on September 11, 2024, the CBN stated that acquirers must route PoS transactions from both physical and electronic terminals through any CBN-licensed PTSA. This directive follows the granting of PTSA licenses to Nigeria Interbank Settlement System Plc (NIBSS) in 2011 and Unified Payment Services Limited (UPSL) in 2024.
To ensure flexibility, the CBN has mandated that PTSAs send PoS transactions only to processors certified by the relevant payment scheme, nominated by the acquirer, and licensed by the CBN. Additionally, all licensed processors must be integrated with both PTSAs, allowing acquirers to choose their preferred processor and PTSA.
Payment Terminal Service Providers (PTSPs) are also required to configure their PoS devices and applications to route transactions through any PTSA as directed by the acquirer. Furthermore, PTSPs must submit monthly returns to the CBN detailing the number of merchants and agents they manage, along with the PTSA services used to route their transactions.
Both PTSAs and acquirers are expected to submit monthly returns to the CBN, detailing all transactions processed through their platforms. These returns must be submitted to the Director, Payments System Management Department, within seven days of the end of each month.
The CBN has directed acquirers to regularize their operations with the PTSAs and notify the CBN of compliance within 30 days. Non-compliance with this directive may result in appropriate sanctions.
This new regulation is expected to enhance the transparency and efficiency of the Nigerian payment system while strengthening the CBN’s ability to monitor electronic transactions.
