Business News
CBN issues new directive on all PoS transactions
The Central Bank of Nigeria (CBN) has issued a new directive mandating all Payment Service Providers to process Point of Sale (PoS) transactions through approved Payment Terminal Service Aggregators (PTSA).
This directive applies to both physical and electronic PoS terminals located at merchants and agent locations across Nigeria.
A circular signed by Oladimeji Yisa Taiwo from the CBN’s Payments System Management Department, sets a 30-day deadline for compliance.
It emphasizes that all transactions from PoS terminals must now go through a PTSA licensed by the CBN, with the goal of enhancing monitoring and decentralizing the transaction routing process, thus addressing concerns over the centralization of PoS operations.
To strengthen the regulation of electronic transactions, the CBN initially issued a PTSA license to the Nigeria Interbank Settlement System Plc in 2011.
This new directive builds on that framework, requiring payment processors to work with certified PTSA entities, as specified by the acquiring party and authorized by the CBN.
The circular stated, “All PoS transactions, whether physical or electronic, must be routed through any CBN-licensed Payment Terminal Service Aggregator to ensure proper tracking and regulation.”
This move follows the September 5th deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission (CAC).
The CAC has already begun cracking down on businesses that failed to comply, shutting down non-registered PoS operations.
This development also comes amidst growing concerns over fraud involving PoS terminals and CBN’s broader efforts to tighten regulations in Nigeria’s financial sector, including measures to restrict cryptocurrency trading.