CBN sets N2 billion as capital requirement for fintech companies

CBN sets N2 billion as capital requirement for fintech companies The Nigerian Central Bank has established capital criteria for financial technology (fintech) and payment operations enterprises. According to the regulator, those in the top category, which deal with switching and processing as well as mobile money operations, would have a N2 billion shareholders’ fund that is unaffected by losses. Six kinds of payment operators were officially certified by the CBN, according to a document transmitting the criteria published on the bank’s website Switching and processing companies, mobile money companies, Payment Solution Services (PSS), Payment Terminal Service Provider (PTSP), Payment Solution Service Provider (PSSP), and Super Agent licenses are among them. The top category would escrow N2 billion in refundable funds into a CBN account. The payment must be made in one lump sum payment. Treasury bills will be used to invest escrowed monies, subject to the availability of treasury instruments, which will be returned proportionately. The CBN stated that fintech companies seeking for PSS must deposit an escrow of refundable N250 million with the CBN, while organizations applying for the three licenses must pay the following amounts: PSSP – N100 million, PTSP – N100 million, and Super Agent – N50 million. The same conditions apply as in the first group, although in variable degrees. “All written applications should be addressed to the Director, Payments System Management Department, Central Bank of Nigeria, Abuja, accompanied by evidence of payments of application fee and other documentary requirements,” the CBN stated. All applicants for the aforementioned licenses would be required to pay a non-refundable application and licensing fee of N100,000 to the CBN, with a licensing cost of N1 million to be paid before the issuing of the final licence if successful.