The Central Bank of Nigeria (CBN) has announced new regulations for processing Point of Sale (PoS) transactions across the country, directing that all POS transaction are to be routed wither through the Nigeria Interbank Settlement System (NIBSS) or Unified Payment Services Limited (UPSL) hence, breaking the monopoly of the former on transaction processing.

In a circular dated September 11, 2024 to all payment service providers on connectivity to Payment Terminal Service Aggregators (PTSA), the CBN directed that payment service providers are to commence regularisation with the PTSAs and notify the CBN in writing to confirm compliance, within 30 days from the date of the circular.

In order to achieve the objective of tracking electronic transactions in Nigeria, the CBN had in August 2011, granted a PTSA licence to Nigeria Interbank Settlement System Plc (NIBSS). Following concerns over channelling all Point of Sale (PoS) transactions through a single aggregator, it had on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited (UPSL).

Nearly five months after it granted the licence to UPSL, the CBN has directed that acquirers are “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 (PTSA).”

The circular further read, “PTSAs are required to send PoS transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN. All licensed Processors must be integrated with both PTSAs, thereby allowing Acquirers the flexibility to choose which Processor(s) and PTSA to utilise.

“All Payment Terminal Service Providers (PTSPs) must ensure that their PoS devices and applications are configured to route transactions through any PTSA, as directed by the Acquirer. All PTSPs shall submit monthly returns to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the corresponding transactions.

“Each PTSA is required to submit monthly returns to the CBN, detailing all transactions processed through their platforms. The returns mentioned above are expected to be submitted to the Director, Payments System Management Department, no later than seven days after the end of each month.”