The Central Bank of Nigeria (CBN) has issued a directive mandating all Point of Sale (PoS) operators to route their transactions through licensed Payment Terminal Service Aggregators (PTSAs) within the next month. This move aims to enhance the tracking and management of electronic transactions in Nigeria.
According to a circular posted on the CBN’s website, the new regulation is designed to improve transaction oversight and address previous concerns about consolidating all PoS transactions through a single aggregator. The CBN had granted a second PTSA licence to Unified Payment Services Limited on April 19, 2024, to diversify the aggregation process.
The circular stipulates:
- Transaction Routing: All PoS transactions must be routed through any of the CBN-licensed PTAs. This includes transactions from both physical and electronic PoS terminals at merchant and agent locations.
- Processor Integration: PTAs are required to forward PoS transactions to processors certified by the relevant Payment Scheme and licensed by the CBN.
- Flexibility for Acquirers: Licensed processors must integrate with both PTAs, allowing acquirers to choose their preferred service providers.
- Device Configuration: Payment Terminal Service Providers (PTSPs) must ensure their devices and applications are compatible with any PTSA selected by acquirers.
- Reporting Requirements: PTSPs and PTSAs must submit monthly reports detailing the number of merchants and agents managed, as well as transaction volumes, to the CBN.
The CBN emphasized that PTSPs must regularize their operations with the PTSAs within 30 days. Failure to comply with this directive will result in appropriate sanctions.
This directive follows an earlier requirement by the Corporate Affairs Commission (CAC) for PoS operators to register with it before September 5. The CBN’s new regulations are expected to streamline electronic transactions and enhance the overall payment system infrastructure in Nigeria.
