BREAKING: CBN directs new PoS transaction routing guidelines

The Central Bank of Nigeria (CBN) has introduced new directives for Payment Service Providers (PSPs), requiring enhanced routing protocols for Point of Sale (PoS) transactions.

This mandate, issued on September 11, 2024, is part of the CBN’s strategy to streamline and diversify Nigeria’s payment terminal infrastructure.

In a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN, all PoS transactions from merchant and agent locations whether physical or electronic must now be routed through any CBN-certified Payment Terminal Service Aggregator (PTSA).

This restructuring follows the bank’s initiative to replace the single aggregator model with multiple aggregators, fostering competition and improving service quality.

The new guidelines aim to bolster oversight, secure transaction data, and protect against fraud, aligning with the CBN’s ongoing efforts to strengthen Nigeria’s digital financial services and promote financial inclusion.

As e-commerce and electronic payments rise, the new regulations are expected to create a more resilient, transparent, and secure payment ecosystem.