An Overview On CBNs New Framework For Payment Service Providers.

INTRODUCTION

In December 2020, the Central Bank of Nigeria (CBN) announced new licence categorisations for the Nigerian payments system, in accordance with their responsibility to promote and facilitate the development of efficient and effective systems for the settlement of transactions.

These new re-categorisations are set out to improve efficiency of payments systems in Nigeria, enhance risk management measures and prevent commingling of payments services. They are:

1) Switching and Processing

2) Mobile Money Operations (MMOs)

3) Payment Solutions Services (PSSs)

4) Any other activity as may be approved by the CBN

The CBN requires that companies which perform more than one of these services, must adopt a group holding structure composed of a non-operating holding company and subsidiary companies to independently carry on a payment service.