The Central Bank of Nigeria, CBN, has directed Point of Service, POS, operators to route their transactions through the Unified Payment Services Limited, UPSL, thus ending the monopoly enjoyed for years by the Nigeria Interbank Settlement System, NIBSS.
The directive is contained in a circular dated September 12, 2024 sent to Payment Service Providers, which have been directed to comply within 30 days
The development has thus created an alternative platform from the NIBSS since it was registered by the apex bank in 2011.
Recall that the CBN had in April this year licensed UPSL, in what analysts said was a move to finally create a counterpoise to the NIBSS.
With this development, the CBN said it can now conveniently track electronic transactions in the country through both NIBSS and UPSL channels.
The CBN gave POS operators to comply with the directive within 30 days.
According to the circular, “PTSAs are required to send PoS transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN. All licensed Processors must be integrated with both PTSAs, thereby allowing Acquirers the flexibility to choose which Processor(s) and PTSA to utilise.
“All Payment Terminal Service Providers (PTSPs) must ensure that their PoS devices and applications are configured to route transactions through any PTSA, as directed by the Acquirer. All PTSPs shall submit monthly returns to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the corresponding transactions.
“Each PTSA is required to submit monthly returns to the CBN, detailing all transactions processed through their platforms. The returns mentioned above are expected to be submitted to the Director, Payments System Management Department, no later than seven days after the end of each month.”
