The telecommunications operators MTN Nigeria and Airtel Nigeria have launched the business activities of their payment banking units in the country. Both partners want to take advantage of the trend and direct their ambitions towards the banking segment.

Through their payment banking units, the two operators will provide millions of Nigerians with a wide range of digitized payment services. Both companies will also allow account holders to receive remittances from any country in the world. They will be able to offer several services provided by commercial banks, the notable exceptions being the prohibition on issuing credit and processing foreign exchange transactions.

These are MoMo Payment Service Bank (Momo PSB) and SmartCash PSB respectively. Both companies have announced this in press releases. MTN and Airtel join 9mobile with its 9PSB as telecom companies managing payment banking units in Nigeria. Globacom is expected to follow suit shortly with Money Master PSB.