CBN Sets One-Month Deadline for PoS Operators to Integrate with Aggregators

The Central Bank of Nigeria mandates PoS operators to route transactions through licensed aggregators, with a one-month compliance window

The Central Bank of Nigeria (CBN) has instructed all Point of Sale (PoS) operators to ensure that their transactions are routed through licensed payment terminal service aggregators. This directive, part of the apex bank’s efforts to improve the management and monitoring of electronic transactions in the country, comes with a strict one-month compliance window.

PoS operators must now collaborate with licensed aggregators, ensuring all transactions go through either the Nigeria Interbank Settlement System Plc, which was granted a Payment Terminal Service Aggregator (PTSA) license in 2011, or Unified Payment Services Limited, which received its license in April 2024. According to the CBN, this step is necessary to ensure that all PoS operators use licensed aggregators, thus facilitating more efficient oversight.

To ease concerns over a single aggregator system, the CBN introduced the second PTSA license to Unified Payment Services Limited earlier this year. Acquirers, responsible for processing payments from PoS terminals, must route all transactions via either of the licensed aggregators. This integration ensures that PoS operators use licensed aggregators and comply with the new regulatory framework.

In addition to this, licensed processors are mandated to work with both aggregators, providing acquirers the flexibility to select their preferred provider. PoS service providers are responsible for configuring their terminals to work seamlessly with any chosen aggregator, ensuring all PoS operators use licensed aggregators to meet CBN’s requirements.

The CBN also requires Payment Terminal Service Providers (PTSPs) to submit monthly reports, outlining the merchants and agents under their management and detailing the PTSA services used. Failure to comply with these directives, which aim to ensure that PoS operators use licensed aggregators, will result in sanctions.