CBN publishes new permit requirements for Payment System operators

The Central Bank of Nigeria (CBN) on Monday, May 24, 2021, published new permit requirements for Payment System operators in the nation.

This disclosure is included in a document saying the eligibility standards for each permit category in the country. The categories listed comprise the Payment Terminal Service Provider (PTSP), Payment Solutions Service Provider (PSSP), Payment Option Services (PSS), Super Agent License, Mobile Money Operator (MMO), Change and Processing License.

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The new license demands create provisions for capitalization of each supported class, documentation, application and license fee and the license validity.

Potential applicants into Nigeria’s flourishing financial services sector will need to grapple with fulfilling the stringent conditions included in these licensing requirements. By way of instance, possible FinTechs looking to take on big GSM companies as Mobile Money Operators will have to stump up N2 billion in funding requirements and escrow a refundable N2 billion with the Central Bank. For all those looking to take on Paystack, Flutterwave, and Interswitch, they will also have to escrow N2 billion together with the Central Bank