The Central Bank of Nigeria (CBN) has announced that it has granted final licenses to 3 payment service banks (PSBs) to start their operations. These are the Hope PSB, Moneymaster PSB and 9 PSB, which have complied with licensing requirements. In a tweet on Friday, August 28, 2020, the issuing institution indicated that “these Three Payment Services Banks (PSBs) have also received final authorization to operate as PSBs.”

The final approval comes after the CBN issued an updated and revised guideline for the licensing and regulation of payment service banks in Nigeria on August 27, 2020. The first guideline for PSBs was released on October 26. 2018. Bank of Banks highlighted that the licensing of new payment service banks will strengthen the drive for financial inclusion in Nigeria, while leveraging mobile and digital channels.

The institution has expressed its commitment to implementing policies that will engender a diversified financial system that meets the needs of all stakeholders. The CBN also said it would continue to monitor developments in the sector and grant additional PSB licenses in due course. Payment service banks refer to a new category of bank with smaller scale operations and the absence of credit risk and foreign exchange transactions. In addition to managing checking and savings accounts, they can also offer payment and funds transfer services, issue debit and prepaid cards, deploy ATMs and other technological banking services.

PSBs should facilitate high-volume, low-value transactions in remittance, micro-savings, and withdrawal services in a secure, technology-driven environment to further deepen financial inclusion.