CBN Mandates Payment Providers to Track PoS Transaction Activities
Background on CBN's Decision
The Central Bank of Nigeria (CBN) has issued a directive to all Payment Service Providers (PSPs), requiring them to track and route transactions through Point of Sale (PoS) terminals. This initiative seeks to improve the overall integrity and traceability of transactions at merchant and agent locations.
Implications of the New Directive
- Enhanced Security: Providing a secure environment for transactions.
- Improved Transparency: Making tracking easier for regulatory bodies.
- Merchant Compliance: Merchants and agents will need to adopt these tracking measures.
Potential Effects on Financial Ecosystem
With the CBN's strong emphasis on transaction security, the financial ecosystem is poised to undergo significant changes. By enforcing these tracking obligations, Nigeria aims to better monitor monetary flows and combat fraudulent activities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.