The Central Bank of Nigeria (CBN) has instructed all payment service providers to start tracking Point of Sale (PoS) transactions.
This directive was issued in a circular dated September 11, 2024, signed by the Director of Payments System Management, Oladimeji Taiwo.
The circular sets a 30-day deadline for payment service providers (PSPs) to regularize their operations with Payment Terminal Service Aggregators (PTSAs).
This move is part of the CBN’s efforts to address concerns about routing all PoS transactions through a single aggregator.
According to the circular, the CBN had previously granted a second PTSA license to Unified Payment Services Limited (UPSL) on April 19, 2024, in order to diversify PoS transaction channels.
The directive mandates that all PoS transactions, whether physical or electronic, must now be routed through any PTSA licensed by the CBN.
“As part of efforts to mitigate the concems regarding channeling all Point of Sale (PoS) transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited (UPSL),” the circular partly stated.
It further stated that PTSAs must process transactions only through certified processors selected by the acquirer and licensed by the CBN. The new regulations aim to give acquirers more flexibility in choosing which processors and PTSAs to work with.
Additionally, Payment Terminal Service Providers (PTSPs) are required to configure their PoS devices to route transactions according to the acquirer’s choice of PTSA.
PTSPs are also expected to submit monthly reports to the CBN, detailing the number of merchants and agents under their management and the PTSAs they work with.
PTSAs, in turn, must provide the CBN with a monthly breakdown of all transactions processed through their systems. Both reports must be submitted within seven days after the end of each month.
Payment service providers are required to comply with these regulations within 30 days of the circular’s issuance. Failure to comply will result in sanction
