MTN Nigeria, the Nigerian division of the MTN Group, a South African multinational mobile telecommunications company, has received final approval from the Central Bank of Nigeria (CBN) to operate its payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
Read this Term service bank (PSB).
With the approval, MTN Nigeria, the largest mobile telecoms operator in Nigeria, can now run its affiliate, the Momo Payment Service Bank Limited (Momo PSB).
MTN Nigeria’s Company Secretary, Uto Ukpanah, announced the sanction on Monday in a press statement obtained by Finance Magnates.
The final go-ahead order follows an approval in principle (AIP) granted in November last year by the Nigerian apex monetary authority.
However, the telecom giant did not disclose when it will kick off the operation of Momo PSB in the country.
MTN wrote: “MTN Nigeria Communications PLC (MTN Nigeria) announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations.
“The date of commencement will be communicated with the CBN in accordance with its requirements.”
Additionally, MTN Nigeria stated that it remains committed to the financial inclusion agenda of the CBN and the country.
Momo’s Modus Operandi
According to the CBN’s Guidelines for the Licensing and Regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Read this Term of Payment Service Banks (PSBs) in Nigeria, payment service providers in the country are to “operate mostly in the rural areas and unbanked locations targeting financially excluded persons.”
They are also expected to have no less than 25% financial service touch points (locally called kiosks) in these rural areas.
In addition, PSBs are authorized to deploy Point of Sale devices and Automated Teller Machines in some of these areas, and they can use other channels, including electronic platforms, to reach their customers.
Moreover, the service providers are allowed to accept deposits from individuals and small businesses as well as being able to carry out payments and remittances (including inbound cross-border personal remittances) through various channels within Nigeria.
Furthermore, they can sell foreign currencies realized from inbound cross remittances to authorized foreign exchange dealers in the country.
However, they are barred from granting any form of loans, advances and guarantees (directly or indirectly), or accepting foreign currency deposits.
Among other things, payment service banks are also not to deal in the foreign exchange market.
A New Market Contender in Town
The entrance of MTN Nigeria, a telco that boasts of connecting approximately 69 million people across Nigeria to each other, means tougher market competition for Nigeria’s struggling banking industry.
According to Nigerian local media, Premium Times, Guaranty Trust Holding Company, the parent company of Guaranty Trust Bank (GTBank), a local Nigerian bank, saw its net profit for 2021 dive to a four-year low.
The holding’s turnover slid 1.6 per cent to N447.8 billion from N455.2 billion, according to issued audited financial statements seen by the outlet.
Local counterpart to GTBank, the United Bank for Africa (UBA), a Nigerian pan-African financial services group, recorded a slight rise of 4.3% in annual profit, the outlet also reported.
Meanwhile, MTN Nigeria’s profits for the fiscal year of 2021 shot up 45.5% with its revenue climbing to a record N1.7 trillion.
MTN Nigeria, the Nigerian division of the MTN Group, a South African multinational mobile telecommunications company, has received final approval from the Central Bank of Nigeria (CBN) to operate its payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
Read this Term service bank (PSB).
With the approval, MTN Nigeria, the largest mobile telecoms operator in Nigeria, can now run its affiliate, the Momo Payment Service Bank Limited (Momo PSB).
MTN Nigeria’s Company Secretary, Uto Ukpanah, announced the sanction on Monday in a press statement obtained by Finance Magnates.
The final go-ahead order follows an approval in principle (AIP) granted in November last year by the Nigerian apex monetary authority.
However, the telecom giant did not disclose when it will kick off the operation of Momo PSB in the country.
MTN wrote: “MTN Nigeria Communications PLC (MTN Nigeria) announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations.
“The date of commencement will be communicated with the CBN in accordance with its requirements.”
Additionally, MTN Nigeria stated that it remains committed to the financial inclusion agenda of the CBN and the country.
Momo’s Modus Operandi
According to the CBN’s Guidelines for the Licensing and Regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Read this Term of Payment Service Banks (PSBs) in Nigeria, payment service providers in the country are to “operate mostly in the rural areas and unbanked locations targeting financially excluded persons.”
They are also expected to have no less than 25% financial service touch points (locally called kiosks) in these rural areas.
In addition, PSBs are authorized to deploy Point of Sale devices and Automated Teller Machines in some of these areas, and they can use other channels, including electronic platforms, to reach their customers.
Moreover, the service providers are allowed to accept deposits from individuals and small businesses as well as being able to carry out payments and remittances (including inbound cross-border personal remittances) through various channels within Nigeria.
Furthermore, they can sell foreign currencies realized from inbound cross remittances to authorized foreign exchange dealers in the country.
However, they are barred from granting any form of loans, advances and guarantees (directly or indirectly), or accepting foreign currency deposits.
Among other things, payment service banks are also not to deal in the foreign exchange market.
A New Market Contender in Town
The entrance of MTN Nigeria, a telco that boasts of connecting approximately 69 million people across Nigeria to each other, means tougher market competition for Nigeria’s struggling banking industry.
According to Nigerian local media, Premium Times, Guaranty Trust Holding Company, the parent company of Guaranty Trust Bank (GTBank), a local Nigerian bank, saw its net profit for 2021 dive to a four-year low.
The holding’s turnover slid 1.6 per cent to N447.8 billion from N455.2 billion, according to issued audited financial statements seen by the outlet.
Local counterpart to GTBank, the United Bank for Africa (UBA), a Nigerian pan-African financial services group, recorded a slight rise of 4.3% in annual profit, the outlet also reported.
Meanwhile, MTN Nigeria’s profits for the fiscal year of 2021 shot up 45.5% with its revenue climbing to a record N1.7 trillion.
Source: https://www.financemagnates.com/fintech/telco-giant-mtn-gets-final-nod-to-start-banking-in-nigeria/