Opay and Palmpay Sends Important Message to Nigerians Over Ban by Bank
Opay and Palmpay Clarify Misinformation Amidst NIBSS Ban on Electronic Transfers
In response to recent actions by Nigeria’s Inter-Bank Settlement System (NIBSS), which led to a ban on 32 financial companies from conducting fund transfers, Opay and Palmpay have moved swiftly to address misconceptions and ensure accurate information reaches the public.
The NIBSS instructed banks to cease using non-deposit payment services for sending money, citing concerns about these financial firms holding customer funds. This decision, aligned with regulatory guidelines, raised questions and led to various clarifications from affected companies.
Notably, Opay, Palmpay, Kuda, PiggyVest, and others were initially associated with the ban. However, both Opay and Palmpay have refuted these claims, asserting their compliance with licensing regulations and addressing user concerns.
Paga’s CEO, Tayo Ovioso, clarified that Paga, a licensed Mobile Money Operator, is not affected by the ban on transfers to Payment Solution Service Providers (PSSPs). Opay assured its customers that it is not under any restrictions imposed by the NIBSS circular, highlighting its status as a licensed Mobile Money Operator accredited by CBN and insured by NDIC. Palmpay also urged the public to disregard false information surrounding the NIBSS notice.
The NIBSS order specifically affects Switching Companies, Payment Solution Service Providers (PSSPs), and Super Agents. While financial institutions impacted by the ban can still receive money, they are restricted from holding customer funds due to licensing regulations.
As part of their responses, Opay and Palmpay emphasized their commitment to regulatory compliance, user satisfaction, and dispelling unfounded rumors. The comprehensive list of banned companies includes Xpress payments, Flutterwave, Interswitch, Paystack, among others.
In addition, reports claiming NIBSS will delist Opay, Moniepoint, Kuda, etc., have been debunked as false information. Opay and Kuda have assured users that these reports are baseless and could cause unnecessary panic.
This episode underscores the importance of accurate information dissemination in maintaining trust and transparency within the rapidly evolving financial technology sector. Opay, Palmpay, and other affected companies remain vigilant in keeping their users informed and assured amidst regulatory changes.
