The Central Bank of Nigeria (CBN) has plans to reauthorize all active point-of-sale (POS) terminals nationwide, according to sources connected to TechCabal. This recertification will entail updating terminal identification numbers (TID) as well as collecting additional details such as Bank Verification Numbers and tax identification numbers from POS agents.
Under the proposed system, each merchant would need to apply for a separate TID, unlike the previous system where mobile money providers like Opay or Palmpay could bulk request TIDs. The new registration procedure requires details like an address, business name, and the F1 Code of the acquiring bank in addition to the aforementioned BVN or tax identification numbers.
The process of validating a POS terminal delivered to a specific location will be overseen by licensed Payment Terminal Service Providers (PTSPs) such as Interswitch, ETOP, or CitiServe.
“Banks will generally link each terminal registration to a designated PTSP that handles setup, deployment, and ongoing merchant support. They also serve as the intermediary for terminal procurement from the Original Equipment Manufacturer, as banks and mobile money providers were not permitted to directly engage with them for procurement,” explained a product manager at a fintech startup.
The Central Bank of Nigeria (CBN) has not set a formal timeline for the recertification of all active POS terminals, but sources have told TechCabal that the CBN has tasked the Nigerian Interbank Settlement System (NIBSS) with developing a geofencing plan. This would ensure that the certified terminals can only be used at their registered locations, otherwise, NIBSS will disable them.
With the timeline for the recertification initiative still undefined, mobile money agents will be required to furnish extra details as part of their Know Your Customer (KYC) obligations to qualify for Tier-3 account operations. These accounts permit transactions up to ₦1 million and can hold deposits up to ₦1 billion.
Previously, agents could operate any level of tiered accounts as long as appropriate KYC was performed and necessary documentation was obtained. Tier-1 accounts are favored among agents due to their minimal documentation requirements. However, the recertification process may push more agents towards operating Tier-3 accounts.
The proposal also requires acquirer banks, Super Agents, and Mobile Money Operators (MMOs) to audit and review agents’ processes in line with the forthcoming recertification scheme.
Mobile money operators, speaking anonymously to TechCabal, said they are still seeking clarification on various aspects of the proposed POS terminal certification process.
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