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CBN divides payment system into 4 with capital requirements of N50m to N2bn

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CBN

In a bid to promote a strong credible operating environment, the Central Bank of Nigeria (CBN) has approved for new licencing categorizations for the nation’s payment system.

Techeconomy gathered that the CBN’s corresponding capital requirements ranging from N50 million to N2 billion.

The new licencing categorizations include Payment Solutions Service Provider (PSSP), Mobile Money Operations, and Switching and Processing and Regulatory Sandbox.

This was contained in a statement signed and issued by Musa I. Jimoh, director, Payment System Management Department of the apex bank on Thursday, December 10.

The statement read in part: “Offers clarity for new and existing market participants, given the significant evolution and innovation in the Nigerian payment system.”

“Only MMOs are allowed to hold customer funds, while companies seeking to combine activities under the Switching and MMO categories may operate under a holding company structure with a clear separation of the subsidiary entities to prevent comingling.

“While existing operators are to comply with the new licensing requirements not later than June 30, 2021, all new licensing requests, including those with Approvals-in-Principle are to comply with the new requirement immediately.”

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