CBN approves new license regime for payment systems
A new license categorisation for payment systems across Nigeria has been approved by the Central Bank of Nigeria (CBN).
This was contained in a circular released on Thursday, to all payment service providers, banks and other financial institutions and signed by Musa Jimoh, director of payments system management department of CBN.
According to the CBN, this approval is in line with its commitment to promote a strong and credible payment system as it offers clarity for new and existing market participants based on the significant evolution and innovation in Nigerian payments system.
The apex bank said this payment system licensing has been streamlined according to permissible activities in four broad categories, which include: switching and processing; mobile money operations (MNOs); payment solution services (PSSs); and regulatory sandbox.
The minimum capital requirement for MMOs is N2 billion; switching and processing (N2 billion); PSS (N250 million); super agent (N50 million); payment solution service provider (N100 million); and payment terminal service provider (N100 million).
There is no minimum capital requirement applicable for operating regulatory sandbox.
CBN said payment service providers and stakeholders should note that: “Only MNOs are permitted to hold customer funds; companies seeking to combine activities under the switching and MNO categories are only permitted to operate under a holding company structure with the subsidiary entities.
Payment system companies in the PSS category may hold any of payment solution service provider (PSSP), payment terminal service provider (PTSP) and super agents license or a combination of all.
“All licensed payment service providers are required to obtain a no-objection from the payments system management department.
“Collaborations between licenced payment companies, banks and other financial institutions in respect of products and services are subject to CBN’s prior approval.
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