In a circular to deposit money banks, merchant banks, switches, mobile money operators, and other financial institutions, financial institutions that are not permitted to hold money (non-deposit financial institutions) are to be removed to the list of NIBSS Instant Payment (NIP) Outwards System.
The non-deposit institutions listed are switches, payment solution service providers (PSSPs) and super agents
It said that while they can process outward transfers as inflows to banks, they are not to receive inflows as their licenses do not permit them to hold customers’ funds.
This means PSSPs such as Flutterwave and Paystack, which are payment gateways, should not be on the NIP outward list as they cannot hold deposits.
NIBBS referred to the CBN guidelines on electronic payment of salaries, pensions, suppliers, and taxes in Nigeria dated February 2014.
The guideline specifies the roles and responsibilities of various stakeholders involved in the end-to-end electronic payment process, such as paying organisations, payment beneficiaries, deposit money banks, other financial institutions, payment solution providers, transaction switching companies, and regulatory authorities.
According to the new licence categorisation for Nigerian payments systems issued by the Central Bank of Nigeria (CBN) on 9, 2020, payment system licensing was streamlined to just four broad categories.
- Mobile money operators (MMO)
- Switching and processing
- Payment solution service (PSS): payment solution service provider (PSSP), payment terminal service providers (PTSP),
- Regulatory sandbox
Out of these four categories, only MMOs are allowed to take deposits.
