Afrigather MTN Nigeria, the nation’s greatest telco, has utilized for Fee Service Options Supplier (PSSP) and Fee Terminal Service Supplier (PTSP) licences for its fintech subsidiary MoMo PSB, reflecting its rising concentrate on digital funds in Nigeria.
The PSSP license permits MoMo PSB to supply fee processing gateways, develop monetary options, and supply service provider aggregation and assortment providers. With a PSSP license, MTN can course of its funds, lowering what it at present pays to different PSSPs. Past fixing the inner fee wants of the telco enterprise, MoMo PSB may tackle the fee processing wants of retailers and companions.
The PTSP license will enable MoMo PSB to deploy and repair POS terminals, develop POS functions, and supply coaching and help to over 302,000 retailers, brokers, and 5.3 million customers on the MoMo PSB platform.
These new licenses put MTN’s fintech arm in direct competitors with established platforms like Interswitch and Flutterwave. Within the PoS market, MoMo PSB can be competing with leaders equivalent to Moniepoint, Opay, and Palmpay.
MTN’s different fintech subsidiary, Yello Digital Monetary Providers (YDFS), utilized for the licenses and paid ₦200 million for them, in response to the corporate’s Q3 2024 report.
MTN Nigeria declined to touch upon the functions.
MTN launched YDFS in 2018, with a super-agent licence to facilitate invoice funds and person-to-person transfers. Nonetheless, this license restricted YDFS from holding buyer deposits in digital wallets.
In 2022, MTN launched MoMo PSB with a Fee Service Financial institution (PSB) license, providing providers equivalent to airtime and information gross sales, invoice funds, and cash transfers. The PSB license nonetheless limits MoMo PSB’s choices, excluding providers like lending, overseas forex transactions, and insurance coverage underwriting.
In Nigeria, buying a fee service supplier license usually features a ₦100,000 software payment, plus an extra ₦100 million license payment as soon as the ultimate approval is issued.
By the top of Q2 2024, MoMo PSB reported 5.5 million energetic digital wallets and 302,800 brokers and retailers.
