The Central Bank of Nigeria (CBN) has directed payment service providers to begin the tracking of all Point of Sale (PoS) transactions.
In a circular issued recently, , the CBN ordered Payment Service Providers (PSPs) to regularize their connections with Payment Terminal Service Aggregators (PTSA) within 30 days.
The circular, signed by CBN’s Director of Payments System Management, Oladimeji Taiwo, stated that the directive is part of efforts to address concerns about channeling all PoS transactions through a single aggregator. The CBN had previously granted a second PTSA license to Unified Payment Services Limited (UPSL) on April 19, 2024.
The CBN has now directed acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator (PTSA). This move is aimed at enhancing the security and integrity of PoS transactions in Nigeria.
The circular reads in part: ““PTSAs are required to send PoS transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN.
“All licensed Processors must be integrated with both PTSAs, thereby allowing Acquirers the flexibility to choose which Processor(s) and PTSA to utilize 4. All Payment Terminal Service Provider (PTSPs) must ensure that their PoS devices and applications are configured to route transactions through any PTSA, as directed by the Acquirer.
“All PTSPs shall submit monthly returns to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the corresponding transactions.
“Each PTSA is required to submit monthly returns to the CBN, detailing all transactions processed through their platforms,
“The returns mentioned in items (5) and (6) above are expected to be submitted to the Director. Payments System Management Department, not later than seven (7) days after the end of each month.
“Consequently, you are hereby directed to commence regularisation with the PTSAs and notify the CBN in writing to confirm compliance, within 30 days from the date of this Circular.
“Please be guided accordingly as non-compliance shall attract appropriate sanctions.”