Confusion as CBN Says eTranzact, Others not Licensed PSSPs

Central Bans of Nigeria (CBN) has claimed that only four e-payment firms in the country are licensed as Payment Solution Service Providers (PSSPs), according to financialtechnologyafrica.com.

The apex bank says Nigeria Inter-Bank Settlement System (NIBSS), eTranzact, Unified Payment Services Limited, 3Line Payment Limited are not listed.  

CBN warned deposit banks in the country to stop patronizing unlicensed PSSPs.

In a letter signed by Dipo Fatokun, CBN director, Banking and Payment System Department, the CBN requested that banks should employ the services of CBN-licensed PSSPs and obtain a copy of a valid PSSP’s license for record purposes.

CBN further warned that patronizing unlicensed PSSPs posed great risk because of its vulnerabilities, and may provide gateway where payment cards data could be compromised.

“For the avoidance of doubt, the under listed are the PSSPs that have been licensed by us”, the apex bank said in the letter.

The CBN-licensed PSSPs are Systemspecs, Interswitch, Parkway and Upperlink Limited.  

Meanwhile, the CBN disclosed that applications for Venture Garden, Unified Payment Service Limited and Xpress Payment Solution Limited are at various stages of processing.

eTranzact was launched in September 2003. Since then eTranzact is presently in partnership with 70 universities in Nigeria, government parastatals, banks, ICT, aviation among others.

Today, eTranzact has evolved into a brand with global reach. The company offers payment solution platforms and easy payment channels to its numerous customers while providing security, convenience and affordability.

eTranzact platform is a multi-application and multi-channel electronic transaction switching and payment processing system.

The Nigeria Inter-Bank Settlement System (NIBSS) was incorporated in 1993 and is owned by all licensed banks and discount houses.

Though CBN had no known equity in NIBSS, the platform is cleverly packaged as a subsidiary of the apex bank to play a dual role of payment operator and regulator in the industry.

NIBSS commenced operations in June 1994. NIBSS has put in place modern world-class infrastructures for handling inter-bank payments in order to remove potential bottlenecks associated with inter-bank funds transfer and settlement.

The company also operates the Nigeria Automated Clearing System (NACS) which facilitates the electronic clearing of cheques and other paper based instruments, electronic funds transfer, Automated Direct Credits and Automated Direct Debits.

NIBSS at the instance of the Bankers’ committee has acquired cutting edge technologies for the operation of the Nigeria Central Switch (NCS).

Unified Payments otherwise known as Unified Payment Services Limited is a card-neutral and option-neutral Payments Service Provider founded in 1997 by a consortium of leading Nigerian banks.

Unified Payments operates as a shared infrastructure for the banking community in Nigeria and Payments Service Provider within and outside Nigeria, with a vision to be the most preferred e-payment service provider in Africa.
 
Formerly known as ValuCard Nigeria Limited, the name of the Company was changed in 2012 to reflect its new business, following a successful transformation from a domestic card scheme to a provider of payment services supporting different payment options and schemes.