The Central Bank of Nigeria (CBN) has directed that all Point of Sale (PoS) transactions must be routed through licensed Payment Terminal Service Aggregators (PTSAs). This move, aimed at improving transaction management, allows acquirers to route transactions via Nigeria Interbank Settlement System Plc or Unified Payment Services Limited.
[dropcap]T[/dropcap]he Central Bank of Nigeria (CBN) has mandated that all Point of Sale (PoS) transactions be routed through licensed Payment Terminal Service Aggregators (PTSAs).
According to a circular released on Thursday, this directive is part of efforts to improve tracking and management of electronic transactions across Nigeria.
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Initially, the Nigeria Interbank Settlement System Plc was granted a PTSA licence in 2011. However, to address concerns about routing all transactions through a single aggregator, the CBN granted a second PTSA licence to Unified Payment Services Limited in April 2024.
The CBN further directed that all payment acquirers, who process PoS transactions, must now channel transactions through one of the two licensed aggregators.
These PTSAs are required to work with certified processors nominated by the acquirers and licensed by the CBN. Payment terminal service providers (PTSPs), responsible for managing PoS terminals, must ensure their devices are compatible with both aggregators chosen by the acquirers.
Additionally, the CBN instructed all PTSPs to submit monthly reports detailing merchant and agent activities, while each PTSA must provide transaction reports. Non-compliance with these guidelines will attract sanctions.
In a related development, the Corporate Affairs Commission also directed PoS operators to register by September 5, 2024.
Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.
