The Central Bank of Nigeria (CBN) has mandated all Payment Service Providers (PSPs) to connect with Payment Terminal Service Aggregators (PTSAs) to enhance the tracking of electronic transactions.
This directive, issued in a circular referenced PSM/DIR/CON/CWO/051/117 and dated September 11, 2024, aims to improve the transparency and flexibility of Point of Sale (PoS) transactions. The circular, signed by Mr. Oladimeji Taiwo, Director of the Payment Services Management Department, outlines the following requirements:
- Routing Transactions: All transactions from PoS terminals at merchant and agent locations must be routed through any CBN-licensed PTSA.
- Monthly Returns: Payment Terminal Service Providers (PTSPs) must submit monthly returns to the CBN detailing the number of merchants and agents they manage, along with the PTSA services used. Similarly, each PTSA must provide monthly returns detailing all transactions processed through their platforms. These submissions are due within seven days after the end of each month.
- Compliance and Sanctions: Non-compliance with these directives will result in sanctions. PTSPs are required to ensure their PoS devices and applications are configured to route transactions through any PTSA as directed. They must also notify the CBN in writing to confirm compliance within 30 days from the date of the circular.
The CBN’s move follows the granting of PTSA licenses to Nigeria Interbank Settlement System Plc (NIBSS) in August 2011 and Unified Payment Services Limited (UPSL) in April 2024, aimed at consolidating PoS transactions through a single aggregator.
For detailed compliance, PSPs and PTSAs must adhere strictly to these guidelines to avoid penalties and ensure the effective monitoring of electronic transactions in Nigeria.