The CBN has instructed Payment Service Providers to channel all PoS transactions from physical and electronic terminals to a designated CBN Payment Terminal Service Aggregator.
It also issued a 30-day deadline requiring service providers to comply with enhanced routing guidelines for Point of Sale transactions. This move aims to strengthen the monitoring of electronic transactions across Nigeria and decentralise PoS transaction routing, addressing concerns about the centralisation of such transactions under a single entity.
The circular which was signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department on Thursday, stated that all PoS transactions from merchant and agent locations must now be routed through any CBN-licensed PTSA.
The circular read, “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.”
“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.”