The Central Bank of Nigeria (CBN) has issued a new directive to Payment Service Providers (PSPs), mandating enhanced routing guidelines for Point of Sales (PoS) transactions.
The directive, released on Wednesday, September 11, 2024, is part of CBN’s ongoing efforts to streamline and diversify the payment terminal infrastructure in the country.
The directive follows the apex bank’s initiative to overhaul the Payment Terminal Service Aggregator (PTSA) structure, which previously operated under a single aggregator model.
The restructuring aims to promote competition, enhance service quality, and create a more resilient payment ecosystem.
In a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN, the new mandate stipulates that all PoS transactions from merchant and agent locations, whether conducted physically or electronically, must be routed through any CBN-certified PTSA.
The shift is expected to enhance oversight and ensure a more transparent and secure handling of payment data.
The CBN’s decision to diversify the PTSA structure is a response to the growing demand for more robust and secure electronic payment solutions in Nigeria.
By allowing multiple aggregators to operate within the system, the central bank seeks to reduce the risks associated with dependency on a single service provider and ensure that transaction processes are seamless and uninterrupted.
With the increased reliance on electronic payments due to the growth of e-commerce and digital financial services, the directive is expected to have a far-reaching impact on how businesses and consumers conduct transactions.
The CBN’s enhanced PoS routing guidelines come at a time when Nigeria’s payment landscape is rapidly evolving.
The bank has been actively pursuing policies that promote financial inclusion, digital transactions, and cybersecurity.
By routing all PoS transactions through CBN-approved PTSAs, the central bank is introducing a new layer of oversight that will help monitor, regulate, and protect the electronic payment ecosystem from fraud, data breaches, and other cyber threats.
