Nigeria’s Central Bank Revokes Licenses of 7 Payment Service Providers

Nigeria’s Central Bank Revokes Licenses of 7 Payment Service Providers

For their inability to meet up their statutory obligations, the Central Bank of Nigeria (CBN) has revoked the licenses of seven Payment Service Providers (PSPs) and one switch service provider.

An official Gazette, obtained from CBN’s official website stated that the affected PSPs are Easifuel Limited, Transaction Processing System (TPS), and Grand Towers Limited.

Others that were listed include Paymaster Limited, E-Revenue Gateway Limited, Eartholeum Network Limited and Globasure Limited.

Meanwhile, the PSP whose switch license was revoked is company by name 3Line Card Management Limited.

As note, the CBN gazette stated that the institutions that their licenses were revoked would cease to operate for a period of six months.

Recalls that the apex bank had earlier approved new license categorisations for the Nigerian payment system.

The CBN sets minimum capital requirements to operate in PSP and Switching/Processing capacities at N100 million and N2 billion respectively.

Read Also: CBN to Commence Phase Implementation of Basel III Accord

Some of the services provided by PSP and Switch operators include; POS terminal deployment and services, PTAD, Merchant/agent training and support, switching, card processing, transactions clearing and settlement agents.

Payment service providers – also known as merchant service providers or PSPs – are third parties that help merchants accept payments.

Simply put, payment service providers enable merchants to accept credit/debit payments (as well as Direct Debit, bank transfer, real-time bank transfer, etc.) by connecting them to the broader financial world.

They provide both a merchant account and a payment gateway, ensuring that businesses can collect and manage their payments in a simple and efficient way.

They offer shops online services for accepting electronic payments by a variety of payment methods.

Nigeria’s Central Bank Revokes Licenses of 7 Payment Service Providers

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