Opay and Palmpay, both a digital payment service companies have responded to Nigeria Inter-bank Settlement System (NIBSS) report that ordered banks to remove Payment Solution Service Providers (PSSP), Switches and Super Agents from its outward transfer list.
PalmPay on its official Twitter page said “it is affected by the NIBSS directive, as we are not “Payment Service Solution Providers”. PalmPay is licensed by the CBN to hold customer funds and is covered by the NDIC. Please disregard any false information to the contrary. For any inquiries or concerns, please don’t hesitate to reach out to us at +234 018886888.
Opay responding also on its official Twitter stated that it is not affected by the recent circular published by NIBSS.
According to the tweet, “The focus is on Payment Service Solution Providers, Switches and Super Agents.
“OPay is a Mobile Money Operator (MMO) licensed by the CBN and insured by the NDIC.
“Your funds are safe and secure with OPay.”
The NIBSS said permitting the listing of non-deposit taking financial institutions as beneficiaries of the NIBSS Instant Payment contravenes the guideline of the CBN.
This was disclosed in a circular directed to all Deposit Money Banks, Merchant Banks, Switches, Mobile Money Operators, Payment Service Banks, Microfinance Banks, Mortgage Banks, Payment Solution Service Providers, Super Agents, and others.
The circular with Ref: NIBSS/BD/NUP0/005/051723 was titled, ‘Directive to PSSPs and Super Agents from NIBSS Instant Payment (NIP) Outwards System.’
The NIBSS said, “This is to bring to your attention that listing non-deposit taking financial institutions such as Switching Companies (Switches), Payment Solution Service Providers (PSSP) and Super Agents (SA) as beneficiary institutions as your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pension Supplier 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.
“Another regulatory advice in this regard is the circular with the caption “Permissible Services and Products of PSSP Operation in Nigeria”, Ref: BPD/DIR/GEN/CIR/05/004 dated May 11, 2018.
“Consequent on the above kindly delist all Switches, PSSPs and SAS front your NIP Outward Transfer charnels only (not Inwards).”
The CBN in a circular dated December 9, 2020 said Switches and Processing platforms, PSSSs and Regular Sandbox do not have the permission to hold customer funds.
