The Central Bank of Nigeria (CBN) has instructed payment service providers to start monitoring all Point of Sale (PoS) transactions.

In a circular addressed to all Payment Service Providers (PSPs) regarding their connection to payment terminal service aggregators, the CBN gave PSPs a 30-day period to comply with Payment Terminal Service Aggregators (PTSA). The circular, dated September 11, 2024, was signed by Oladimeji Taiwo, the CBN’s Director of Payments System Management.

“To address concerns about routing all PoS transactions through a single aggregator, the CBN issued a second PTSA license to Unified Payment Services Limited (UPSL) on April 19, 2024,” the circular noted.

The CBN further instructed that all PoS transactions, whether physical or electronic, must be routed through any CBN-approved PTSA at merchant and agent locations.

It also stated that PTSAs must process PoS transactions only through Processors certified by the relevant Payment Scheme, chosen by the Acquirer, and licensed by the CBN. All licensed Processors must connect with both PTSAs, providing Acquirers the flexibility to select their Processor(s) and PTSA.

Payment Terminal Service Providers (PTSPs) are required to configure their PoS devices and software to follow the Acquirer’s choice of PTSA, while PTSPs must submit monthly reports to the CBN, detailing the merchants and agents they manage and the PTSAs used for transactions.

Similarly, each PTSA must submit monthly reports to the CBN on all transactions processed through their systems. These reports should be submitted within seven days of the month’s end.

The CBN emphasized that PSPs must regularize their operations with PTSAs within 30 days and notify the CBN of their compliance. Failure to do so will result in penalties.