NIBSS recently issued a widely-discussed circular, sparking speculation in both online forums and office discussions within the fintech industry.
This has raised significant questions about the intentions behind the circular and its potential impact on fintech businesses.
Key concerns include understanding NIBSS’s motives and assessing the implications of this new policy for individual businesses.
Before delving into the effects of the recent update from Nigeria’s interbank settlement company, let’s take a closer look at the content of the circular itself.
According to the circular, the act of listing non-deposit taking financial institutions, such as Switching Companies (Switches), Payment Solution Service Providers (PSPs), and Super Agents (SA), as beneficiary institutions on NIP funds transfer channels is deemed a violation of the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes in Nigeria, dated February 2014.
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.”
To the layman, the quote above means that the next time you open your bank app to transfer funds, you won’t find certain financial institutions (FIs) on the destination/beneficiary bank list.
About 32 financial institutions with either super agent, switching company or payment solution service provider (PSSP) licenses will be delisted with immediate effect from the NIBSS NIP (NIBSS Instant Payments) list.NIBSS recently issued a widely-discussed circular, sparking speculation in both online forums and office discussions within the fintech industry.
This has raised significant questions about the intentions behind the circular and its potential impact on fintech businesses.
Key concerns include understanding NIBSS’s motives and assessing the implications of this new policy for individual businesses.
Before delving into the effects of the recent update from Nigeria’s interbank settlement company, let’s take a closer look at the content of the circular itself.
According to the circular, the act of listing non-deposit taking financial institutions, such as Switching Companies (Switches), Payment Solution Service Providers (PSPs), and Super Agents (SA), as beneficiary institutions on NIP funds transfer channels is deemed a violation of the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes in Nigeria, dated February 2014.
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.”
To the layman, the quote above means that the next time you open your bank app to transfer funds, you won’t find certain financial institutions (FIs) on the destination/beneficiary bank list.
About 32 financial institutions with either super agent, switching company or payment solution service provider (PSSP) licenses will be delisted with immediate effect from the NIBSS NIP (NIBSS Instant Payments) list.NIBSS recently issued a widely-discussed circular, sparking speculation in both online forums and office discussions within the fintech industry.
This has raised significant questions about the intentions behind the circular and its potential impact on fintech businesses.
Key concerns include understanding NIBSS’s motives and assessing the implications of this new policy for individual businesses.
Before delving into the effects of the recent update from Nigeria’s interbank settlement company, let’s take a closer look at the content of the circular itself.
According to the circular, the act of listing non-deposit taking financial institutions, such as Switching Companies (Switches), Payment Solution Service Providers (PSPs), and Super Agents (SA), as beneficiary institutions on NIP funds transfer channels is deemed a violation of the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes in Nigeria, dated February 2014.
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.”
To the layman, the quote above means that the next time you open your bank app to transfer funds, you won’t find certain financial institutions (FIs) on the destination/beneficiary bank list.
About 32 financial institutions with either super agent, switching company or payment solution service provider (PSSP) licenses will be delisted with immediate effect from the NIBSS NIP (NIBSS Instant Payments) list.
