Airtel and MTN secure permission to run Payment Service Bank

Telecommunication companies, such as Airtel and MTN, have been approved by the government in principle to operate payments service banks (PSBs) in the country. On Friday, the two leading telecommunications companies announced regulatory filings on the Nigerian Exchange Limited (NGX). 9mobile and Globacom received the same license from the Central Bank of Nigeria (CBN) last year. The country is intensifying efforts to deepen financial inclusion, and now all four Nigerian mobile network operators are approved to provide financial services.

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Financial services are provided by PSBs to low-income earners and people who do not use banks or other financial institutions. MTN will have its PSB via MoMo Payment Service Bank Limited, and Airtel’s PSB will be Smartcash Payment Service Bank Limited. The purpose is to bring more people into financial inclusion.