POS operators threaten nationwide shutdown over Verve card monopoly claims
By Aboki Forex —
The Association of Point of Sale Service Providers has warned that it may shut down operations across Nigeria unless the Central Bank of Nigeria and the Federal Competition and Consumer Protection Commission intervene immediately.
The group says two unnamed companies are engaging in alleged monopolistic practices that violate regulatory laws. It has submitted a formal complaint to regulators.
In a statement signed by Yomi Idowu, Communications Consultant to the association, the operators said they may suspend acceptance, processing and switching of Verve card transactions. This would disrupt banking and e-payment services relied on by millions of Nigerians.
The association accused the companies of maintaining an exclusive monopoly over Verve card processing. It also alleged abuse of a dominant position in the domestic card scheme market, in violation of the Federal Competition and Consumer Protection Act 2018 and CBN guidelines on electronic payment channels.
Other allegations include charging scheme fees above the acquirer’s share of the regulated Merchant Service Commission, and carrying out illegal, unauthorised debits on settlement accounts belonging to acquirers, processors and switches without proper approval.
The group noted that other card scheme operators have already removed exclusivity arrangements in line with CBN regulations. It said the alleged practices are an exception within the industry.
The association warned that if regulators do not act, the shutdown could be nationwide. This would affect millions of Nigerians who depend on POS terminals for daily transactions.