All point-of-sale operators are required by the Central Bank of Nigeria to route transactions through authorised payment terminal service aggregators. The steps were taken to improve the nation’s electronic transaction tracking and management, according to a circular that was issued by the CBN.

“As part of efforts to mitigate the concerns regarding channelling all Point of Sale transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited.

“In furtherance of the above, the CBN with this directs as follows: 1 Acquirers are henceforth required 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 CBN,” the apex bank noted.

It was mentioned that a PTSA licence was given to Nigeria Interbank Settlement System Plc in 2011 so that it could manage the aggregate of PoS transactions.

Earlier this year in April, Unified Payment Services Limited was awarded a second PTSA licence by the CBN in response to concerns regarding the routing of all transactions through a single aggregator.

“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. As part of efforts to mitigate the concerns regarding channelling all Point of Sale transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited.”

All acquirers—the organisations in charge of handling payments from PoS terminals—must route transactions through one of the two authorised aggregators, under the directive of the CBN.

To provide acquirers with the freedom to select their preferred service providers, licensed processors must also connect with both PTSAs.

It was mentioned that payment terminal service providers, who are in charge of setting up and maintaining PoS terminals, have to make sure their hardware and software are set up to function with any PTSA that the acquirers select.

The CBN states that PTSPs must also provide monthly reports to the CBN that include information on the number of agents and merchants they oversee, as well as the PTSA services that are utilised.

In a similar vein, all PTSAs are required by CBN to submit monthly reports detailing all transactions that are conducted through their systems.

The director of the Payments System Management Department must receive the reports, per the apex bank, within seven days of the end of each month.

The CBN had threatened to take necessary action if any PSPs did not regularise their operations with the PTSAs within 30 days after issuing the instruction.

Recall that on July 7, the Corporate Affairs Commission declared that all Point of Sale providers in the nation needed to register with them by September 5 at the latest.