Olufemi Adeyemi

The Central Bank of Nigeria has mandated that all Point of Sale (PoS) operators must process transactions via licensed payment terminal service aggregators. A circular released on the CBN’s website on Thursday indicated that this initiative aims to improve the monitoring and management of electronic transactions within the nation.

“To address concerns about consolidating all PoS transactions through a single aggregator, the CBN issued a second Payment Terminal Service Aggregator (PTSA) license to Unified Payment Services Limited on April 19, 2024.

Consequently, the CBN has outlined the following directives: Acquirers are now required to route all transactions from PoS terminals at merchant and agent locations, whether physical or electronic, through any CBN-licensed Payment Terminal Service Aggregator.

Additionally, PTSAs must direct PoS transactions exclusively to Processors certified by the relevant Payment Scheme, as nominated by the Acquirer and licensed by the CBN,” the central bank stated.

It was noted that the Nigeria Interbank Settlement System Plc received a PTSA license in 2011 to manage the aggregation of PoS transactions.

However, to alleviate concerns regarding the reliance on a single aggregator, the CBN granted a second PTSA license to Unified Payment Services Limited earlier this year in April.

“To facilitate the tracking of electronic transactions in Nigeria, the Central Bank of Nigeria issued a Payment Terminal Service Aggregator license to Nigeria Interbank Settlement System Plc in August 2011.

In response to concerns about routing all Point of Sale transactions through one aggregator, the CBN granted a second PTSA license to Unified Payment Services Limited on April 19, 2024.”

The CBN has instructed that all acquirers, the entities responsible for processing payments from PoS terminals, must route transactions through one of the two licensed aggregators.

Furthermore, licensed processors are obligated to connect with both PTSAs, allowing acquirers the option to select their preferred service providers.

It is essential for payment terminal service providers, who are tasked with the deployment and management of PoS terminals, to ensure that their devices and applications are properly configured to function with any PTSA selected by the acquirers.

The CBN has stated that PTSPs must also provide monthly reports to the CBN, outlining the number of merchants and agents under their management, along with the PTSA services utilized.

In a similar vein, the CBN has required each PTSA to submit monthly transaction reports for all activities conducted through their platforms.

The apex bank has specified that these reports should be delivered to the director of the Payments System Management Department within seven days following the conclusion of each month.

The CBN has urged all PSPs to align their operations with the PTSAs within a 30-day timeframe, cautioning that failure to comply with this directive will result in appropriate penalties.

It is important to note that the Corporate Affairs Commission announced on July 7 that all Point of Sale operators in the country must complete their registration with it by September 5.