How do you obtain a Payment Terminal Service Provider license in Nigeria? To kickstart business operations in Payment Terminal Service, one needs a license. Therefore, this article covers how to get one.
A Payment Terminal Service is an entity or payment channel licensed by CBN and saddled with the responsibility of ensuring the fluidity and infrastructural suitability of POS operations.
Consequently, only licensed PTSPs are permitted to deploy POS terminals nationwide. Hence, in this article, you will find the processes to obtain a Payment Terminal Service Provider license in Nigeria.
Before then, the next subheading gives examples of PTSPs in Nigeria.
Examples Of PTSPs in Nigeria
Below are 5 examples of PTSPs in Nigeria.
- Paymaster
- ETOP
- Citi Serve
- Valucard
- ITEX
Right now, the next section in this article leads off with details on how to obtain a PTSP license in Nigeria.
Steps To Obtain A Payment Terminal Service Provider License In Nigeria
CBN defined the licensing steps for obtaining a Payment Terminal Service Provider license in Nigeria. They are as follows:
• The first step is to register with CAC as an incorporated company.
• After incorporation, pay a non-refundable application fee of One hundred thousand Naira payable to the CBN via the licensing fees for payment products Account No- NGN 140230089/Abj
• Upon payment of the application fee, CBN grants an approval in principle, which subsists for six months, pending the grant of a final license.
• Pay a One Million Naira fee to the same account and get a final license.
Conclusion
One of the biggest drivers of the CBN’s financial inclusion policy is the PTSPs. In addition to this, the accessibility of financial services has been bolstered by their existence, and lots of innovators are leveraging this space.
It’s the reason why we have carefully detailed the steps to be taken to obtain a PTSP license. Compliance with this is vital to avoid any legal complications.
References
1 Chike Olisah, “CBN issues new licence and capital requirements for FinTechs” available at, https://nairametrics.com/2021/05/25/cbn-issues-new-licence-and-capital-requirements-for-payment-systems/?amp=1accessed on Feb 8, 2023
2 Five companies granted licenses to operate as Payment Terminal Service Providers (PTSPs) in Nigeria, available at, https://innovation-village.com/five-companies-granted-licenses-to-operate-as-payment-terminal-service-providers-ptsps-in-nigeria/ accessed on Feb 8, 2023
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