CBN directs payment service providers to begin PoS transaction tracking

The Central Bank of Nigeria (CBN) has mandated all Payment Service Providers to route transactions from Point of Sale (PoS) terminals—both physical and electronic—through an approved CBN-licensed Payment Terminal Service Aggregator (PTSA).

This directive is part of the CBN’s effort to enhance the monitoring and decentralisation of electronic transactions across Nigeria, addressing concerns about the centralisation of PoS transaction routing.

In a circular issued on Thursday by Oladimeji Yisa Taiwo of the CBN’s Payments System Management Department, the apex bank announced a 30-day compliance deadline for service providers to adhere to the new routing guidelines.

The circular stated that PoS transactions from merchant and agent locations must now be routed through any PTSA licensed by the CBN.

The directive reads, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator licence to Nigeria Interbank Settlement System Plc.

“In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.”

Additionally, the circular specifies that “PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.”

This new policy follows the September 5 deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission (CAC).

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