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    CBN Mandates PoS Operators to Route Transactions Through Licensed Aggregators

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    By Aaior K. Comfort

    The Central Bank of Nigeria (CBN) has instructed all Point of Sale (PoS) operators to route their transactions through licensed Payment Terminal Service Aggregators (PTSAs) within one month. This directive, aimed at enhancing the tracking and management of electronic transactions, was detailed in a circular on the CBN’s website.

    The CBN’s move comes after concerns about routing all transactions through a single aggregator. To address these issues, the CBN granted a second PTSA license to Unified Payment Services Limited on April 19, 2024, complementing the existing license held by Nigeria Interbank Settlement System Plc since 2011.

    According to the new directive:

    1. Transaction Routing: Acquirers must route all PoS transactions through any CBN-licensed PTSA. PTSAs are required to send PoS transactions only to processors certified by the relevant Payment Scheme and nominated by the acquirer.

    2. Processor Integration: Licensed processors must integrate with both PTSAs to allow acquirers flexibility in choosing service providers.

    3. Configuration and Reporting: Payment Terminal Service Providers (PTSPs) must ensure their devices and applications are compatible with any PTSA chosen by the acquirers. They are also required to submit monthly reports to the CBN detailing the number of merchants and agents managed and the PTSA services used. Similarly, PTSAs must submit monthly reports of all transactions processed through their platforms to the CBN’s Payments System Management Department.

    The CBN has set a deadline of 30 days for PoS operators to align with the new regulations, warning that non-compliance will lead to sanctions.

    The Corporate Affairs Commission had previously mandated that all PoS operators register with it by September 5, further emphasizing the regulatory push to streamline and manage electronic payment systems in Nigeria.

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