CBN Mandates Point of Sale Operators to Route Transactions Through Licensed Aggregators
The Central Bank of Nigeria (CBN) has issued a directive requiring all Point of Sale (PoS) operators to channel transactions through licensed Payment Terminal Service Aggregators (PTSAs) in a bid to enhance the tracking and management of electronic transactions across the country.
In a circular published on Thursday, the apex bank outlined that the move is part of a broader effort to improve oversight of the growing PoS ecosystem. To address concerns about routing all PoS transactions through a single aggregator, the CBN granted a second PTSA licence to Unified Payment Services Limited in April this year. Previously, the Nigeria Interbank Settlement System Plc (NIBSS) had been the sole aggregator since 2011.
The CBN’s directive mandates that all acquirers, the financial institutions responsible for processing PoS payments, must now route transactions through either of the two licensed aggregators. Furthermore, payment terminal service providers (PTSPs), tasked with deploying and managing PoS terminals, are required to configure their devices to work with any PTSA chosen by the acquirers.
“Acquirers are henceforth required 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,” the CBN stated.
To support transparency, PTSPs must submit monthly reports detailing the number of merchants and agents they service, as well as the PTSA services utilised. The CBN has also directed each PTSA to provide monthly transaction reports to its Payments System Management Department within seven days after the close of each month.
The CBN emphasised that compliance with the new directive is mandatory, warning that failure to adhere to the rules will result in appropriate sanctions. Operators have been given 30 days to align their operations with the new regulations.
The move comes after the Corporate Affairs Commission’s recent announcement, which requires all PoS operators to register with the commission by September 5, further tightening regulatory control over the burgeoning electronic payments sector.
