LunagisthubCBN Mandates Dual Connectivity for PoS Transactions: What You Need to Know
The Central Bank of Nigeria (CBN) has issued a directive requiring all financial institutions, acquirers, and payment service providers to implement mandatory dual connectivity for Point of Sale (PoS) transactions within one month. This move aims to address frequent PoS downtime caused by reliance on a single transaction channel .
Dual connectivity refers to the ability of PoS systems to connect to both the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) simultaneously. This ensures that transactions can be processed seamlessly, even in the event of a single network failure .
The CBN’s directive is expected to reduce dependence on any single aggregator and stabilize the country’s payment infrastructure. With dual connectivity, PoS systems can automatically switch to the secondary network in case of a failure, minimizing downtime and ensuring uninterrupted service .
To ensure readiness, the CBN has mandated periodic redundancy and failover tests. NIBSS and UPSL must work with regulated institutions to confirm that systems can support uninterrupted service, with results forming part of the CBN’s ongoing oversight. Additionally, stricter reporting obligations have been introduced, requiring NIBSS and UPSL to notify banks immediately during any downtime and submit a detailed incident report within 24 hours .
The CBN’s directive is expected to have a positive impact on businesses and consumers who rely on PoS systems for transactions. With dual connectivity, transactions can be processed more efficiently, reducing the risk of downtime and associated losses .
What do you think about the CBN’s directive on dual connectivity for PoS transactions? Share your thoughts in the comments below.
Lunagisthub
