NIGERIA: The Central Bank of Nigeria (CBN) has given MTN Nigeria Communications PLC (MTN Nigeria) permission to start operating Momo Payment Service Bank Limited (Momo PSB) and issuing Point of Sale devices (POS).
MTN Nigeria will be joining Moneymaster PSB, a subsidiary of Glo and 9PSB, a subsidiary of 9mobile, to operate in the fintech space.
MTN Nigeria Secretary, Uro Ukpanah, said this in a press statement headlined “The Central Bank of Nigeria gets final approval for Momo Payment Service Bank Limited to Commence Operations.”
Ukpanah also alleged that the CBN issued his company a letter of approval to begin operations on April 8. The letter did not specify a start date, but it did declare that it would operate in accordance with the establishment’s criteria.
“However, according to the CBN’s operation standards, the goal of granting a licence to run a PSB in the country is to aid in financial inclusion, particularly in rural regions,” Ukpanah explained.
This development will allow MTN Nigeria to compete with existing financial institutions such as banks and POS issuers, as well as increase market share and job creation.
“This will also improve financial inclusion in rural areas by increasing access to deposit products and payment/remittance services to small businesses, low-income households, and other entities through high-volume low-value transactions in a secure technology-driven environment,” according to a statement from the CBN.