POS Operators Threaten to Shutdown Services Nationwide, Give Reasons

The Association of Point of Sale Service Providers has warned that banking and payment services across Nigeria could face major disruptions if regulators fail to address what it described as anti-competitive practices within the country’s card payment system.

The group said it may direct its members to suspend the acceptance, acquiring, processing and switching of Verve card transactions nationwide if urgent action is not taken by the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC).

The warning was contained in a statement issued by Yomi Idowu, Communications Consultant to the association.

According to the association, several licensed operators in the payment ecosystem have formally protested what they described as persistent actions by two companies that allegedly violate existing regulations governing electronic payments and fair competition in Nigeria.

The group said the companies’ actions are inconsistent with provisions of the Central Bank of Nigeria guidelines as well as the Federal Competition and Consumer Protection Act of 2018.

The association explained that it represents a coalition of CBN-licensed payment acceptors, acquirers, processors and switches operating across the country. It noted that members have become increasingly concerned about what they see as a growing threat to the stability and fairness of Nigeria’s electronic payment sector.

It stated that the planned suspension of Verve card transaction services has become necessary because previous efforts to resolve the matter through engagement have not yielded results.

According to the association, the alleged conduct of the affected companies is undermining confidence in the payments industry and placing financial pressure on institutions participating in the card transaction value chain.

The group further claimed that the situation is weakening the capital position of operators while creating an uneven business environment for other licensed participants.

Among the concerns raised by the association is the alleged maintenance of an exclusive control over the processing of Verve card transactions. The operators argued that such an arrangement limits competition and restricts opportunities for other licensed players within the industry.

The association also accused the companies of abusing a dominant position in the domestic card scheme market, an action it believes runs contrary to provisions of the FCCPC Act and relevant CBN guidelines regulating electronic payment channels.

It further alleged that the companies impose scheme fees beyond the share of Merchant Service Commission allocated to acquirers under existing CBN regulations.

Another major allegation involves what the operators described as unauthorized debits from settlement accounts belonging to acquirers, processors and switching companies.

The association warned that unless regulators intervene quickly, operators may be left with no choice but to halt services linked to Verve card transactions, a move that could affect millions of customers and merchants who rely on POS terminals for daily business activities.

The group urged both the CBN and FCCPC to investigate the allegations and take immediate steps to ensure compliance with regulatory standards, promote fair competition and safeguard the integrity of Nigeria’s digital payment ecosystem.

“Ironically the Association emphasized that other Card Scheme operators have since abolished all forms of exclusivity in compliance with CBN regulations”.