TeamApt acquires switching license from CBN to operate as a payment switch in Nigeria

A major turning point in the evolution of e-commerce and electronic transaction payment authorisation in the country was achieved as TeamApt Ltd, a Nigerian fintech startup, acquired a switching license from the Central Bank of Nigeria (CBN) to operate as a payment switch in the country.

TeamApt switching license
The announcement was made at a press conference hosted at the company’s headquarters on Friday, last week.

What is a switching license?

A switching company facilitates the exchange of value between financial service providers, merchants, their customers and other stakeholders. With this license, TeamApt will be able to power one of its startup’s products, AptPay.

Speaking on the switching license acquisition, TeamApt CEO, Tosin Eniolorunda, said, “It is the highest license awarded to any fintech by the CBN because the license allows you to put all the banks together and be able to debit their banking position with the central bank. What this translates to is that with AptPay, TeamApt can actually move money across the banks without putting our money down. This license puts TeamApt on the same level as other Tier-1 financial technology companies.”

He went further by explaining that, “If through a payment gateway, a buyer pays a merchant for a product and the payment gateway provider needs to pay the merchant instantly, without the license, the provider will have to pay with its own money. But with the license, the provider is merely moving the bank funds around without tying down its money”.

TeamApt switching license
TeamApt CEO, Tosin Eniolorunda

Having raised $5.5 million in Series A funding for expansion across Africa recently, Tosin, explained that the company was in advanced talks with 6 banks in Ghana with expansion plans underway in Tanzania. He also hinted at plans to expand outside Africa before the end of Q4 2020.

About Aptpay

Dumebi Duru, the team lead for AptPay, says the switching license is the “last piece to the matrix. AptPay solution supports transaction processing, interbank transfers and direct debits, as well as switching services across all transactional channels.”

“AptPay would be going live in a couple of months and is being integrated in about 6 banks.” He added.

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