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ARTICLE · 29 APRIL 2022

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PAYMENT SERVICE BANKS (PSB) In Nigeria

Sidebrief Inc.
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The Central Bank of Nigeria (CBN) recently granted licenses to operate as a Payment Service Bank (PSB) to two telecommunication companies. This is after these companies met a series of applications and requirements.

NigeriaFinance and Banking
Sidebrief Inc.
Sidebrief Inc.

The Central Bank of Nigeria (CBN) recently granted licenses to operate as a Payment Service Bank (PSB) to two telecommunication companies. This is after these companies met a series of applications and requirements. This license empowers these telcos to complement other banks rather than compete with them.

What is Payment Service Banks?

Payment Service Banks is a corporation that is permitted to use technology and agency banking to mobilize deposits and facilitate transfers from unbanked consumers in rural regions and any other location in Nigeria where they exist. This means that technology-driven companies are granted a license to engage in banking activities such as savings, deposits, and withdrawals in rural areas or places with limited banking activities. 

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