MTN’s MoMo Payment Service Bank Limited (MoMo PSB) received final approval from Nigeria’s Central Bank. Telecom companies are expected to have at least $12.2 million in capital to operate as payment service banks in Nigeria. These operators must provide digital financial services to rural communities that do not have bank accounts. They also must have at least 50% physical access points in these areas. The final approval strengthened MTN’s dedication to contributing to the financial inclusion of Africa’s most populous country.
This allows MTN and other PSBs to provide financial tools in Nigeria and be part of the country’s fintech revolution. The primary purpose of issuing PSB licenses is to increase financial inclusion and enable easy transactions, especially in rural communities. Small businesses and low-income households will access deposit products and payment services through high-volume but low-value transactions on a safe platform.
MTN MoMo Pay uses its mobile money platform to offer several financial services such as bill payment and cash withdrawal. It already operates in a few countries in Africa. Its’ Nigeria branch will be part of the country’s Fintech safe. Other mobile money platforms in the country include Moneymaster PSB, a subsidiary of Glo, and 9PSB, a subsidiary of 9mobile.
