The Central Bank of Nigeria has mandated that all POS operators route transactions through licensed payment terminal service aggregators.
According to a circular released on the CBN’s website on Thursday, the measure is intended at improving the country’s electronic transaction tracking and administration capabilities.
“On April 19, 2024, the CBN awarded Unified Payment Services Limited a second PTSA licence in order to address concerns about routing all Point of Sale transactions through a single aggregator.
“In furtherance of the above, the CBN hereby directs as follows: 1 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 PTSAs are required to send PoS transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN,” the central bank said.
It was observed that in 2011, the Nigeria Interbank Settlement System Plc was granted a PTSA licence to handle PoS transaction aggregate.
To address concerns about routing all transactions through one aggregator, the CBN awarded Unified Payment Services Limited a second PTSA licence in April of this year.
“In order to track electronic transactions in Nigeria, the Central Bank of Nigeria granted Nigeria Interbank Settlement System Plc a Payment Terminal Service Aggregator license in August 2011.” As part of measures to alleviate concerns about routing all Point of Sale transactions through a single aggregator, the CBN granted Unified Payment Services Limited a second PTSA licence on April 19, 2024.”
The CBN has mandated that all acquirers, which are responsible for processing payments from PoS terminals, route transactions through one of the two approved aggregators.
Furthermore, licensed processors must connect with both PTSAs so that acquirers can select their preferred service providers.
It stated that payment terminal service providers, who are in charge of implementing and managing PoS terminals, must ensure that their devices and software are compatible with any PTSA chosen by the acquirers.
The CBN requires PTSPs to produce monthly reports indicating the number of merchants and agents they supervise, as well as the PTSA services used.
Similarly, the CBN requires each PTSA to submit monthly reports on all transactions completed through its systems.
According to the apex bank, reports must be sent to the director of the Payments System Management Department within seven days of the end of each month.
The CBN asked all PSPs to regularise their operations with the PTSAs within 30 days, adding that non-compliance would result in appropriate consequences.
Recall that the Corporate Affairs Commission said on July 7 that all Point of Sale operators in the country must register with them by September 5.