Nigerian fintech companies are addressing user concerns following a memo from the Nigeria Inter-Bank Settlement System (NIBSS) advising banks and mobile money operators to delist unlicensed fintechs involved in direct consumer deposits. The directive targets firms with only superagent, payment solution service provider (PSSP), or switching licenses, which by regulation do not permit them to accept direct deposits via bank transfers. More than 100 fintech entities in Nigeria hold such licenses.
Licensed fintechs like OPay, PalmPay, and PiggyVest’s Pocket App are unaffected, as they hold mobile money or microfinance banking licenses, allowing them to accept consumer deposits. Moniepoint, for example, operates under a microfinance bank license and has clarified its regulatory compliance. Meanwhile, companies like Paystack, which partners with Titan Trust Bank for virtual accounts, have also assured users of their adherence to banking regulations.
However, misinformation has circulated on social media, leading to confusion about which fintechs might be impacted. Flutterwave and Paystack both clarified that the NIBSS memo does not impact their services, as they operate in partnership with licensed banks or under licenses that do not involve direct deposit-taking.
The NIBSS memo could lead to the delisting of fintech companies acting as deposit-takers without proper licensing or partnerships with banks, marking a shift towards stricter regulatory compliance. However, fintechs with the appropriate licenses or partnerships have reiterated that consumer funds remain secure and that their services remain unaffected by the new directive.
