PAYMENTS SERVICE PROVIDE LICENSE
CBN FINTECH LICENSE
In the most recent times, financial technology (otherwise known as FINTECH) companies have been evolving with numerous innovative products relating to payments services, which are gaining acceptance in Nigeria.
Consequently, the Central Bank of Nigeria(CBN) commenced a new licensing regime for all categories of payment service providers and financial technology companies in Nigeria.
This new licensing regime was birthed for the purpose of promoting financial inclusion and enhances access to financial services for low-income earners through leveraging on technology.
Essentially, the CBN licencing regime focuses on the aspect of the FINTECH relating to payment service providers (PSP). It does not cover other known aspects of FINTECH such as loan apps or cryptocurrency.
In accordance with the CBN’s regulation, there are 3 categories of PSP Licenses namely:
The proposed licence regime also puts minimum shareholders’ funds for all categories of the payment service providers, which will be highlighted below.
PSP LICENSE REQUIREMENTS IN NIGERIA:
The existing licence types under the super category are:
The permissible activities are agent recruitment and management services.
The minimum shareholder fund for the PSP Super License category is N5, 000,000,000.00 (Five Billion Naira).
The application fee for this category is N2, 000,000 (Two Million Naira) while the renewal fee is N1, 000,000 (One Million Naira). The licence is valid for three (3) years.
2. PSP Standard Licence
The existing licence types under the standard category are as follows:
The minimum shareholder fund for the PSP Standard Licence category is N3, 000,000,000.00 (Three Billion Naira).
The application fee for this category is N1, 000,000 (One Million Naira) while the renewal fee is N500, 000.00 (Five Hundred Thousand Naira). The licence under this category is valid for three (3) years.
3. PSP Basic Licence
The existing licence types under the basic category are:
The application fee for this category is N100, 000 (One Hundred Thousand Naira) while the renewal fee is N50, 000 (Fifty Thousand Naira). This licence category of payment service providers is valid for two (2) years.
In conclusion, the new CBN licencing regime was postulated to open up the financial service sector to more financial technology companies and provide a regulatory base for the growing industry.
Payments service providers are with this regime expected to leverage on mobile and digital services to enhance financial inclusion and stimulate economic activities in the provision of payment services.
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