Given the increasing reliance on financial technology (“FinTech”) platforms and the growing level of acceptability of their services by both banks and consumers of financial services, the Central Bank of Nigeria (the “CBN”) is proposing a new licensing regime for all categories of payment service providers and FinTech companies. This was communicated by the CBN in a circular dated 15 October 2018 (“Circular”).
The CBN circular proposes 3 (three) licence categories namely: Super Licence, Shared Licence and Basic Licence. The Super License, which will be valid for 3 (three) years, covers the following existing license types – switching, payment solution service providers (“PSSP”), payment terminal service provider (“PTSP”), non-bank merchant acquiring and super agency. The Standard License, also valid for 3 (three) years, will cover the existing mobile money operator, super agency and non-bank merchant acquiring licence types. The Basic Licence, valid for 2 (two) years, will cover the existing super agency, PSSP and PTSP licence types. Once the new licensing regime is implemented, every company will be expected to notify the CBN before starting any new activity under its licence category.
Stakeholders have been requested to review the proposed new licencing regime and revert with any comments to the Director, Banking and Payment System Department of the CBN today, 29 October 2018.
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: Chinedu Kema (firstname.lastname@example.org) and Adeleke Alao (email@example.com)
Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140