Telecommunications businesses are beginning to carve their path into the financial sector. This is achievable because some payment service banks (PSB) have received operational licence approval from the Central Bank of Nigeria (CBN).
In 2009, the Nigerian government launched the Shared Agent Network Expansion Service (SANEF) through the Central Bank of Nigeria (CBN).
The financial technology revolution and efforts to bring the unbanked into the financial mainstream led to the launch of the SANEF.
In April, MTN Nigeria received CBN’s final approval to conduct business as Momo Payment Service Bank Limited (Momo PSB).
MTN and Airtel recently received an Approval in Principle (AIP) to operate as Payment Service Bank from the CBN. The latter got CBN’s final clearance a few months ago to join the list of Payment Service Banks in Nigeria.
With this authorisation, MTN Nigeria joined Moneymaster PSB, a Glo company, and 9PSB, a 9mobile subsidiary, in operating in the fintech sector.
Let’s take a dive into the five payment service banks in Nigeria.
1. Paga payment service banks in Nigeria
In order to make it easier for one billion people to access and use money, Tayo Oviosu founded Paga in early 2009. By doing away with the use of cash in transactions and opening up access to financial services, they are resolving two significant global issues.
They are an ecosystem for banking and payment services throughout Africa. Their main goals are to make it easier for buyers and sellers to pay, receive payment, and use financial services.
They accomplish this directly as well as through their Platform-as-a-Service, which enables other third parties to use the substantial infrastructure we have established for countless opportunities.
2. 9 payment service banks in Nigeria
The first payment service bank in Nigeria, 9 Payment Service Bank (9PSB), was founded in 2020 and is authorised by the CBN.
As an alternative to traditional banking, telecom operator 9mobile introduced the fintech app 9PSB as a Payment Service Bank (PSB) gateway to offer users electronic banking services.
Due to a streamlined user interface and rapid reaction time, using the payment facilities was extremely simple. Users can buy airtime and data, as well as transfer money, pay for cable TV and utility bills, and withdraw cash from ATMs and agents.
But the fact that 9PSB subscribers may only make deposits through PSB field agents is a significant bummer. This implies that users cannot credit their mobile 9PSB account until they physically meet with representatives.
Agents could not be accessible in some locations or be far away from the user’s location.
3. Hope payment service banks in Nigeria
Another leading digital-first bank in Nigeria is Hope Payment Service Bank Limited (Hope PSBank). Hope PSBank, which was founded in September 2019, uses digital technologies to provide equitable financial services.
They aim to make everyone have a simple and convenient access to financial and payment services regardless of geography, social or economic status, or level of education. They offer the 4As of digital financial services: availability, accessibility, affordability, and awareness.
4. MTN payment service banks in Nigeria
The Central Bank of Nigeria gave MTN Nigeria the go-ahead to run a Payment Service Bank on April 11, 2022.
This year, the biggest telecommunications company in Nigeria, MTN opened its MoMo Payment Service Bank (PSB) to the public, enabling its Nigerian customers to open accounts, pay bills, send and receive money, and more services that have long been accessible to customers in other countries.
MTN operates a sizable mobile money operation in a number of other African economies, and it is attempting to do the same in Nigeria, where its voice and data services are more famous.
5. SmartCash payment service banks in Nigeria
Following the Central Bank of Nigeria’s approval, SmartCash was founded in 2022 to help Nigerians, especially the unbanked and underbanked, achieve their objective of financial inclusion.
People can send and receive money from anyone in the world using SmartCash’s Person-to-Person payment service (P2P), which they can do via their mobile devices or at the nearby merchant outlet.
SmartCash’s main goal is to increase financial inclusion by utilising high volume, low value transactions in a secure, technology-driven setting.
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