CBN Blocks 135 Fintechs From Collection Of Deposits

The Central Bank of Nigeria (CBN) has delisted various Fintech companies that provide deposit collection services to the banking industry.

To enforce the mandate, the CBN ordered that all commercial banks immediately discontinue using their services.

The affected fintechs were taken offline almost immediately by the Deposit Money Banks (DMBs) through the Nigeria Inter-Bank Settlement System (NIBSS) Plc.

Allowing these organisations, which had secured licenses from the Central Bank of Nigeria (CBN) to operate as Payment Solution Service Providers (PSSPs), Switching Companies, Super Agents, and others; to collect payments from clients was illegal, according to a circular dated December 5, 2023.

Only commercial banks and those recognised by the central bank to collect inflows from customers are permitted to provide such services, according to NIBSS, while PSSPs, Switching companies, and Super Agents are not.

“This is to bring to your attention that listing non-deposit-taking financial institutions as beneficiary institutions on your NIP funds transfer channels violates the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes in Nigeria dated February 2014.”

“This is to bring to your attention that listing non-deposit-taking financial institutions such as Switching Companies, Payment Solution Service Providers, and Super Agents as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes in Nigeria dated February 2014.

“For clarity, Switches, PSSPs, and SAs may process outward transfers as inflows to banks but are not to receive inflows as their licenses do not permit them to hold customers’ funds.

“Another regulatory advice in this regard is circular with the caption ‘Permissible Services and Products of PSSP Operation in Nigeria’, Ref: BPD/DIR/GEN/CIR/05/004 dated May 11, 2018.

Consequent on the above, kindly delist all Switches, PSSPs, and SAs from your NIP Outward Transfer channels only (not inwards),” the circular from the NIBSS said.

This new directive will affect financial technology companies like Flutterwave, Paystack, and others that obtained licenses to operate as PSSPs, to serve purely as a payment gateway. This means users of Paystack and others cannot have funds deposited into their accounts. as they cannot receive money from anyone.

However, this will not affect Mobile Money Operators (MMOs) like Opay, PalmPay, Smartcash, MoniePoint, MoMo and others, which can keep the funds of customers.

The circular, which was dated Tuesday, December 5, 2023, has generated mixed reactions as a few media platforms, listed some mobile money operators (MMOs) like Opay, PalmPay, and others are part of the financial technology (fintech) firms affected by the directive.

In the disclosure sighted by this newspaper, the NIBSS specifically said those not licensed to accept deposits are Super Agents, Switching Companies, and Payment Solution Service Providers (PSSPs).

A look at the website of the Central Bank of Nigeria (CBN) showed that 47 companies were issued licenses by the CBN to operate as Super Agents, 75 firms were authorised by the apex bank to function as PSSPs, and 16 fintechs have the Switching and Processing license.

Below is the full list, as obtained from the CBN, of the three categories of fintech affected by the NIBSS directive;

SWITCHING AND PROCESSING LICENCE CATEGORY

S/NO LICENSEE

Appzone Limited

Arca Payments Company Limited

Chamswitch Limited

Coralpay Technology Nigeria Limited

eTranzact International Limited

Flutterwave Technology Solutions Limited

Habaripay Limited

Hydrogen Payment Services Limited

Interswitch Limited

Network International

Paystack Payment Limited

Remita Payment Service Limited

Teamapt Limited

Terra Switching & Processing Company Limited

Unified Payment Services Limited

Xpress Payments Solution Limited

1. PAYMENT SOLUTION SERVICE PROVIDER (PSSP) AUTHORISATION

S/NO LICENSEE

Afara Partners Limited

Angala Financial Technologies Limited

Appmart Integrated Limited

Appzone Limited

Artha Fintech Limited

Betastack Technology Limited

Bud Infrastructure Limited

Callphone Limited

Capricorn Digital Limited

CBI Technologies Ltd

Cellulant Nigeria Limited

Centric Gateway Limited

Ceviant Payments Nigeria Limited

Clane Company Nig. Ltd.

Cyberspace Limited

Demerge Nigeria Limited

Dot Financial Inclusion Technologies Limited

Easypay International Limited

Egole Pay Limited

Ercas Integrated Solutions Limited

E-Settlement Limited

Eyowo Integrated Payments Limited

Fincra Technologies Limited

Flutterwave Technology Solutions Limited

Fountain Payment Systems Solution

Gemspay Limited

Global Accelerex Limited

Gpay Instant Solution Limited

GTP Client Services Limited

Hellopay Africa Integrated Service Ltd.

31 ICAD Concord Limited

32 Infiniti Segments Limited

Irecharge Technology Innovations Limited

Irofit Technologies LimitedD

Itex Integrated Services Limited

Konetpay Nigeria Limited

Kora Payments

Leadremit Limited

Moneta Technology Ltd

Multigate Payment Limited

Netapps Technologies Limited

Netplusdotcom Nigeria Limited

Nomba Financial Services Limited (Formerly Cosmic Intelligence Lab Limited)

One Payment Limited

Onepipe.Io Services Ltd

Parkway Projects Limited

Payfixy Nigeria Limited (Formerly Innovate 1 Pay Limited)

Paylode Services Limited

Paysure Technologies Limited

Payu Payments Nigeria Limited

Pethahiah Rehoboth International Limited

Prophius Limited

Qrios Networks Limited

Redtech Limited

Resident Fintech Limited

Rexel Limited

Routepay Fintech Limited

Saanapay Corporate Investments Management Limited (SAANACORP)

Shago Payments Ltd

Simplify International Synergy Limited

Soft Alliance & Resources Limited

Spay Business Solutions Limited

Spout Payment Solutions

Stanbic Financial Services Limited

Swift Link-NZ Global Services Ltd.

Teinnovate Capital Limited

Unlimint Nigeria Ltd

Upperlink Limited

Vas2net Technologies Ltd

Venture Garden Nigeria Limited

Vestrapay Nigeria Limited

Voguepay Web Solution Limited

Waxed Mobile Nigeria Ltd

Waya Multilinks Technologies Limited

Woven Finance Limited

SUPER-AGENT AUTHORISATION

S/NO LICENCEE

3Line Card Management

5554 Technologies Limited

Accelerex Networks Limited

Africa Mama Atm Limited

Africave Technologies Limited

Airtel Mobile Commerce Nigeria Limited (Airtel)

Allstream Information Technology Solutions Limited

Angala Financial Technologies Limited

Appmart Integrated Limited

ATN Wayya Limited

Betastack Technology Limited

C24 Limited

Callphone Limited

Capricorn Digital Limited

CBI Technologies Ltd

16 Cicoserve Payments Limited

Citiserve Limited

Clane Company Nig. Ltd.

Connectpoint Technology Solutions Limited.

Crowd Force Limited (Formerly Mobile Forms Limited).

Dot Financial Inclusion Technologies Limited.

Egole Pay Limited.

Errand P Limited.

E-Settlement Limited.

Fountain Payment Systems Solution.

Fucil Datatech Limited.

Gwills Payments Service Limited.

Infibranches Technology Limited.

Innovectives Limited.

Interswitch Financial Inclusion Services Limited.

Irofit Technologies Limited.

Itex Integrated Services Limited.

Kadick Integrated Limited.

Lukeport Nigeria Limited.

Microsystems Investment And Development Limited.

Moneymaster Limited.

Nigerian Postal Service (NIPOST) .

Nomba Financial Services Limited (Formerly Cosmic Intelligence Lab Limited)

Paycluster Technology Limited.

Paygo Limited.

Shago Payments Ltd.

Spout Payment Solutions.

Swift Link-Nz Global Services Ltd..

Traction Payments Ltd..

Vatebra Pay Limited..

Waxed Mobile Nigeria Ltd..

Y’ello Digital Financial Services..