The Central Bank of Nigeria (CBN) yesterday issued new licence requirements for payment systems, increasing the minimum capital requirements for Payment Solutions Service Providers (PSSPs) from N100 million to N250 million.
Also, the new framework had a downward review of the capital requirements for licensing of Payment Solution Services (PSSs) from N250 million to N100 million.
Capital requirement for the Switching and Processing licence and Mobile Money Operator licence both remains unchanged at N2 billion.
This disclosure is contained in a document released by the apex bank on Monday, May 24, 2021, which stated that the eligibility for each licence category was tied to any corporate entity registered by the Corporate Affairs Commission (CAC), with Memorandum and Article of Association (MEMART).
CBN sets N2 billion as capital requirement for fintechs
Other categories of operators have a lower benchmark.
The
Central Bank of Nigeria has set capital benchmarks for firms involved financial technology and payment operations.
Those in the top category, dealing with switching and processing, as well as mobile money operation, will have a N2 billion shareholders’ funds unimpaired by losses, the regulator announced.
According to a document conveying the guidelines published on the bank’s website on Monday, six categories of payment operators were newly approved by the CBN.
They include those involved in switching and processing, mobile money operators, Payment Solution Services (PSS), Payment Terminal Service Provider(PTSP), Payment Solution Service Provider (PSSP) and Super Agent licenses respectively.
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The Central Bank of Nigeria has set a minimum capital base for Payment Service Banks and other finance institutions.
The CBN disclosed this in a circular released on Thursday titled ‘New licence categorisations for the Nigerian payment system’ and signed by the Director, Payments System Management Department, Musa Jimoh.
Mobile money operations with operational licence for e-money issuing, wallet creation and management, and pool account were required to have N2bn minimum capital.
Also, switching and processing companies with operational licence for switching, card processing, transactions clearing and settlement agents’ services, non-bank acquiring services, and activities as permissible under super-agent also require N2bn capital.
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CBN rolls out new licence regime for payment systems
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In a bid to promote a strong and credible payment system in the country, the Central Bank of Nigeria, CBN, has approved new license categorization for payment systems in Nigeria.
In a circular to all Payment Service Providers, Banks and Other Financial institutions issued yesterday, the apex bank noted that payments system licensing has been streamlined according to permissible activities in four broad categories namely: Switching and Processing; Mobile Money Operations (MMOs); Payment Solution Services (PSSs); and Regulatory Sandbox.
The circular signed by Director, Payment System Management Department, CBN, Musa Jimoh stated: “CBN in line with its commitment to promote a strong and credible payment system has approved new licence categorisations for the payments system.