Central Bank of Nigeria grants licenses to 3 Payment Service Banks

 

The Central Bank of Nigeria (CBN) has granted final licenses to 3 Payment Service Banks (PSBs) to start operation.

The final approval to the 3 Payment Service Banks to operate follows their compliance with the licensing requirements which were stipulated by the apex bank. The three PSBs include:

(a)  Hope PSB

(b)  Moneymaster PSB

(c)  9 PSB

The final approval is coming after the CBN issued an updated and revised guideline for the licensing and regulation of Payment Service Banks in Nigeria on August 27, 2020. The first guideline for the PSBs was issued on October 26, 2018.

The CBN, while disclosing that the licensing of the new Payment Service Banks will strengthen Nigeria’s financial inclusion drive leveraging mobile and digital channels, has expressed its commitment towards the implementation of policies that will engender a diverse financial system that meets the needs of all stakeholders.

The CBN also said that it will continue to monitor developments in the sector and grant additional PSB licenses in due course.

Payment service banks refer to a new category of the bank with smaller-scale operations and the absence of credit risk and foreign exchange operations. In addition to operating current and savings accounts they can also offer payments and remittance services, issue debit and prepaid cards, deploy ATMs and other technology-enabled banking services. 

The PSBs are to facilitate high volume low-value transactions in remittance services, micro-savings and withdrawal services in a secured technology-driven environment to further deepen financial inclusion.