In a bid to promote a strong and credible payment system in the country, the Central Bank of Nigeria, CBN, has approved new license categorization for payment systems in Nigeria.
In a circular to all Payment Service Providers, Banks and Other Financial institutions issued yesterday, the apex bank noted that payments system licensing has been streamlined according to permissible activities in four broad categories namely: Switching and Processing, Mobile Money Operations, Payment Solution Services and Regulatory Sandbox.
The circular signed by Director, Payment System Management Department, CBN, Musa Jimoh stated: “CBN in line with its commitment to promote a strong and credible payment system has approved new licence categorisations for the payments system.
“The new licensing framework offers clarity for new and existing market participants given the significant evolution and innovation in the Nigerian payments system.
“All payment service providers and other stakeholders are invited to note the following in this regard that payments system licensing has been streamlined according to permissible activities in four broad categories: Switching and Processing, Mobile Money Operations Payment Solution Services and Regulatory Sandbox.”
According to the regulator, the minimum capital requirement for operating MMO 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.
However, no minimum capital requirement is applicable for the operating of a Regulatory Sandbox.