The Central Bank of Nigeria (CBN) 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.
“As part of efforts to mitigate the concerns regarding channelling all point of sale transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA license to Unified Payment Services Limited.
“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 apex bank noted.
It was observed that in 2011, the Nigeria Interbank Settlement System Plc was granted a PTSA license 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 license in April of this year.
“To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria in August 2011 granted a Payment Terminal Service Aggregator license to Nigeria Interbank Settlement System Plc.
“As part of efforts to mitigate the concerns regarding channelling all Point of Sale transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA license to Unified Payment Services Limited.”
The CBN has directed that all acquirers, the organisations in charge of processing payments from PoS terminals, route transactions through one of the two licensed aggregators.
Furthermore, licensed processors must connect with both PTSAs to allow acquirers to 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 selected 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 apex bank 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 apex bank asked all PSPs to regularise their operations with the PTSAs within 30 days, adding that non-compliance would result in appropriate consequences.
Recall that on July 7, the Corporate Affairs Commission (CAC) announced that all point-of-sale operators in the country must register with them before September 5.
