CBN Strengthens Digital Payments with Geo-Tagged PoS Terminals and ISO 20022 Standards

The Central Bank of Nigeria (CBN) is stepping up measures to secure digital transactions with new rules for point-of-sale (PoS) terminals, introducing mandatory geo-tagging and global payment standards. Governor Dr. Olayemi Cardoso unveiled the reforms to curb fraud and enhance traceability, ensuring that every transaction is secure and accountable across Nigeria’s growing digital economy.

Cashless payments are rapidly transforming commerce in Nigeria, from the bustling streets of Lagos and Abuja to the expanding online marketplace. However, challenges such as fraud, technical failures, and uneven access have threatened the full adoption of digital payments. The new CBN guidelines aim to address these gaps by strengthening oversight and safeguarding both consumers and businesses.

Under the new circular, issued on August 25, 2025, all PoS terminals must now be geo-tagged with GPS and registered with licensed payment aggregators. Devices will be allowed to operate only within a 10-metre radius of their registered location, while all transactions must be routed through either NIBSS or Unified Payment Services Limited. Terminals failing to comply will be blocked from processing payments, a move analysts say will significantly reduce fraudulent activity.

In addition to geo-tagging, the CBN is mandating the adoption of the ISO 20022 global standard for payment messaging by October 31, 2025. This international protocol will unify transaction messages, improve data quality, and enable seamless domestic and cross-border payments. Experts believe this alignment with global standards will attract foreign investment and strengthen Nigeria’s position as a fintech hub in Africa.

The reforms come alongside efforts to expand financial inclusion. The CBN’s Unified Complaints Tracking System allows consumers to verify licensed operators and lodge complaints easily via *959#. Governor Cardoso emphasized that the combination of advanced technology, regulatory oversight, and public engagement is key to fostering a safe, reliable, and inclusive digital financial ecosystem that benefits both urban and rural communities.

Source: Punch