Paystack Reacts as NIBBS Orders Banks to Disconnect Flutterwave, Others From Apps, Other Channels
- Paystack has asked its customers to be calm following a recent directive by NIBBS for banks to disconnect non-deposit financial institutions
- Paystack said it developed a relationship with a commercial bank to process payments
- The development comes as the NIBBS circular says banks should take down the companies from fund transfer channels
One of Nigeria’s payment platforms, Paystack, has reacted to the recent directives by the Nigeria Inter-bank Settlement Systems (NIBSS) to banks to disconnect non-deposit financial institutions from funds transfer channels.
The company said on X, formerly Twitter, that the recent NIBBS directives do not impact its services as it has developed a relationship with Titan Trust Bank.
Source: Twitter
Paystack's relationship with Titan Trust Bank
The company said:
“Hi, team, we wanted to reassure you that the recent NIBSS circular does not impact Paystack-Titan or any other Paystack services. We developed Paystack-Titan in partnership with Titan Trust Bank in a way that allows the service to operate compliantly, and it passed review from NIBSS.”
NIBBS sent a circular to commercial banks directing them to disconnect non-deposit financial institutions from funds transfer channels as it violates CBN’s guidelines.
Legit.ng reported that a circular from the Nigeria Interbank Settlement System (NIBBS) had instructed commercial banks to disconnect every non-deposit financial institution from NIBBS Instant Payment (NIP) fund transfer channels.
The affected financial institutions include switching firms, payment solutions service providers, and super agents.
The NIP fund transfer channels include USSD, Mobile banking apps, PoS, ATMs, and web and internet platforms.
NIBBS clarifies non-deposit financial institutions
The circular said:
“Listing non-deposit-taking financial institutions such as switching companies (switches). Payment Solution Service Providers (PSSP) and Super Agents (SA) as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria dated February 2014.”
The NIBBS circular stated that while these financial institutions would be barred from receiving funds, they would be allowed to process payments into banks.
“For clarity, Switches, PSSPs, and SAs may process outward transfers as inflows to banks but are not to receive inflows as their licenses do not permit them to hold customers’ funds,” the circular said.
Punch reports that to operate in Nigeria, operators must obtain at least one of the following licenses from the Central Bank of Nigeria (CBN): Switching and Processing, Mobile Money Operations, Payment Solutions Services, and Sandbox.
The CBN said only Mobile Money Operators can hold customer funds.
“A Difficult Day”: Paystack sacks 33 workers, CEO explains decision, unveils 4-Month pay-off package
Legit.ng reported that Nigerian payment platform Paystack has announced the sack of 33 members of its workforce in Europe and the United Arab Emirates (UAE).
Shola Akinlade, co-founder of Paystack's chief executive officer (CEO), disclosed this in a post on X, formerly Twitter, on Thursday, November 16, 2023.
Shola Akinlade, co-founder of Paystack's chief executive officer (CEO), disclosed this in a post on X, formerly Twitter, on Thursday, November 16, 2023.
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Source: Legit.ng
