The Central Bank of Nigeria (CBN) has mandated that all Point of Sale (PoS) operators must channel transactions through licensed Payment Terminal Service Aggregators (PTSAs) to enhance the tracking and management of electronic transactions in the country.
In a circular posted on its website on Thursday, the CBN clarified that this directive aims to address concerns about routing all PoS transactions through a single aggregator. As a result, the CBN issued a second PTSA license to Unified Payment Services Limited on April 19, 2024, in addition to the Nigeria Interbank Settlement System Plc, which has held a PTSA license since 2011.
The apex bank emphasized that all acquirers—institutions responsible for processing PoS payments—must route transactions through either of the two licensed PTSAs. Acquirers have the flexibility to choose their preferred service providers, as licensed processors must integrate with both PTSAs.
The CBN also directed that Payment Terminal Service Providers (PTSPs), responsible for deploying and managing PoS terminals, ensure their devices and applications are compatible with the PTSAs chosen by the acquirers. PTSPs are required to submit monthly reports to the CBN, detailing the merchants and agents under their management, along with the PTSA services utilized.
Additionally, the PTSAs themselves must submit monthly reports of all transactions processed through their platforms to the CBN’s Payments System Management Department. These reports must be filed within seven days after the end of each month.
The CBN has urged all payment service providers (PSPs) to regularize their operations with the PTSAs within 30 days, warning that failure to comply will result in sanctions.
This move comes after the Corporate Affairs Commission’s July 7 announcement requiring PoS operators to register with the commission by September 5, as part of efforts to formalize the sector.
