The Central Bank of Nigeria (CBN) is making plans to raise the capital base for Financial Technology firms (Fintechs) as the market share controlled by the payment platforms begin to expand.
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CBN Director, Payment System Management Department, Musa Jimoh, who made this known during an event tagged ‘Collaborating for Industry Growth and Profitability’ organised by Interswitch.
The CBN has set capital benchmarks for firms involved in financial technology and payment at N2 billion.
Those in the top category, dealing with switching and processing, as well as mobile money, will have a N2 billion shareholders’ funds unimpaired by losses, the regulator announced.
Some of the Fintechs are involved in switching and processing, mobile money, Payment Solution Services (PSS), Payment Terminal Service Provider(PTSP), Payment Solution Service Provider (PSSP) and Super Agent licences.
The event provided an opportunity for industry players to discuss how to strengthen the digital payment ecosystem and position Nigeria as a force to reckon with on the global payment landscape.
Jimoh said technology is expansive and Fintech operators must be seen to have what it takes to meet customers expectations in terms of efficiency and safety of transactions.
“We want to ensure that every single entity we regulate have financial muscles,” he said.
According to Jimoh, CBN’s responsibility as a regulator is to create an enabling environment where all the entrants can thrive and compete healthily.
“We understudy all the interoperable operations of each technology company, and all the participants generally. And from time to time, we bring all these entities together to dialogue to enable us to decide what the best industry practice is in relation to Nigeria’s payment ecosystem.”
Speaking during the panel session, Managing Director, Interswitch Purepay, Akeem Lawal, said players in the payment industry must collaborate to provide opportunities to co-create solutions that make digital payment safer and further drive profitability.
He said: “Interswitch is committed to partnering stakeholders to drive financial inclusion through its innovative products and solutions. These products reaffirm the company’s continued drive to improving Nigeria’s digital payments landscape through innovation and the development of first-rate solutions and infrastructure that address pressing needs in the payments ecosystem.”