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) within the next 30 days.
This new directive, announced via a circular on the CBN’s website, aims to enhance the tracking and management of electronic transactions across the country.
The CBN’s move comes as part of its ongoing efforts to streamline the electronic payments ecosystem and ensure better regulatory oversight.
As per the new guidelines, all acquirers are now required to route POS transactions from both physical and electronic terminals through CBN-licensed PTSAs.
These PTSAs, in turn, must direct transactions to processors certified by relevant payment schemes and authorized by the CBN.
The central bank’s decision also addresses previous concerns about consolidating POS transactions through a single aggregator.
To mitigate potential issues, the CBN granted a second PTSA license to Unified Payment Services Limited on April 19, 2024, alongside the existing license held by Nigeria Interbank Settlement System Plc, which has been in place since 2011.
The CBN has instructed all Payment Service Providers (PSPs) to align their operations with the designated PTSAs within a month. Failure to comply with the new directive will result in appropriate sanctions, as per the CBN’s warning.
This regulatory move is expected to enhance the efficiency and security of electronic transactions, reinforcing the CBN’s commitment to improving the payment infrastructure in Nigeria.