After Getting Permit to Begin Telecom Services, Nigerian Company Moves to Get Banking License
- Interswitch, a top payment service provider in Nigeria, has merged with M-Kudi, one of Nigeria’s mobile money operators
- The company is reportedly seeking regulatory approval to begin banking services in Nigeria following the merger
- Interswitch recently acquired mobile telecom licensing from the Nigeria Communications Commission to begin operations
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
One of Nigeria’s top financial technology firms, Interswitch, has merged with M-Kudi, a mobile money service provider, as it intensifies efforts to secure a payment service bank (PSB) license from the Central Bank of Nigeria (CBN).
The merger, pending approvals, will allow Interswitch to create accounts and hold customer deposits, which will be the first time the fintech firm will offer non-payment services.
Source: UGC
Interswitch to receive Forex remittances
According to reports, Interswitch will be able to receive foreign currencies for its customers and directly offer agency banking services.
Analysts believe the company will be fine convincing the Nigerian banking public to use its remittance or agency banking services, stating that the company, whose presence is deeply rooted in Nigeria, will compete with top players in the industry.
CBN introduced rules for payment service banks in 2018 to increase financial inclusion in the country.
The payment service bank holders are expected to offer 25% of physical activity in rural areas with a high unbanked population.
The company derives its earnings from offering payment services to its banking customers and will have to invest in a nationwide network of agents.
Per the CBN regulations, mobile money operators are restricted from participating in the revenue-driving segments of other banks as they can not offer loans, hold Forex deposits, or participate in foreign exchange transactions except receiving remittances.
Nigerian company secures licence to begin telecom services
Legit.ng reported that the Nigerian financial technology company Interswitch has secured a permit to begin telecom services, leveraging the infrastructure of the existing four telecommunication companies in Nigeria.
The company intends to service Nigeria’s under-served regions with minimal infrastructure.
The Nigerian payment giant acquired the license for N500 million from the NCC in May 2023.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
