CBN Orders Tracking for PoS Transactions

The Central Bank of Nigeria (CBN) has instructed all Payment Service Providers (PSPs) to route transactions from Point of Sale (PoS) terminals through an approved CBN Payment Terminal Service Aggregator (PTSA). This directive aims to improve monitoring of electronic transactions and decentralize PoS transaction routing, addressing concerns over centralization.

New Directive: All PoS transactions at merchant and agent locations, whether physical or electronic, must be processed through a CBN-licensed PTSA.

30-Day Deadline: PSPs have 30 days to comply with these new routing guidelines.

Background: This move follows the expiration of a deadline for PoS agents to register with the Corporate Affairs Commission (CAC). The CAC has begun shutting down unregistered PoS businesses.

Fraud Prevention: This directive is part of a broader effort to combat fraud, as PoS terminals were involved in 26.37% of fraud incidents in 2023.

The CBN’s decision is expected to enhance transaction security and oversight. Further details will be provided soon.