CBN licenses Unified Payments as second provider for PTSA services for Nigeria
26 April 2024 |
3:13 am
In a bid to clamp down on financial crimes and other market misconducts, the Central Bank of Nigeria (CBN) is set to enforce the existing requirement that all transactions from point-of-sale channels in Nigeria must go through a licensed Payment Terminal Service Aggregator (PTSA).
Central Bank of Nigeria. Photo/facebook/cenbankng
In a bid to clamp down on financial crimes and other market misconducts, the Central Bank of Nigeria (CBN) is set to enforce the existing requirement that all transactions from point-of-sale channels in Nigeria must go through a licensed Payment Terminal Service Aggregator (PTSA).
This move is in alignment with the CBN’s objectives of fully tracking all electronic transactions in Nigeria, given the propensity of such transactions for insecurity, violent crimes, banditry, kidnapping, etc. as well as other National objectives.
To achieve its objectives, the CBN has awarded the country’s second Payment Terminal Service Aggregator (PTSA) licence to Nigeria’s premier financial technology company, Unified Payments, following a rigorous and transparent process.
By awarding a second PTSA licence, the apex bank has proactively responded to industry operators, who had expressed serious concerns about channelling all transactions through a single aggregator, the Nigeria Interbank Settlement System PLC (NIBBS), which had been the case for some years. With the new policy direction, payment service providers would henceforth route all transactions through either of the two licensed Companies.
Reacting to the development, financial analysts and industry players have commended the Central Bank, affirming that this move is a massive step in the right direction.
They also commended the open, transparent, and inclusive manner via which the selection process was managed, and the licence awarded. The selection process, which lasted for months, began with an invitation for qualified organisations within the payment industry to submit an Expression of Interest document, alongside other requisite documentation and an additional capital requirement of N1 billion.
The new management of CBN decided not to give the licence out without going through an open process and for the first time in licensing a payment service provider, the apex bank went through a public bid process in its publications of Friday, January 5, 2024, in different national newspapers. At the end of the process, Unified Payments emerged as the most preferred service provider.
Unified Payment Services Limited, also called Unified Payments or UP, is a shared service provider within Nigeria’s financial technology sector, owned by a consortium of Nigerian banks.
For over 26 years, the firm has provided payment technology to banks and other industry operators. The first and only non-banking entity that is a principal member and licensed acquirer of all of American Express, Mastercard, Visa, UnionPay and Payattitude. Unified Payments facilitates both local and international transactions.
Formerly known as ValuCard Nigeria Plc, Unified Payments led the way to introduce POS payments in Nigeria under its card scheme, known as ValuCard, which is the first payment card to be issued in Nigeria.
The company later transformed into a scheme-neutral and option-neutral service provider, enabling transactions under different schemes. The company has continued to provide leading payment technologies and services and enable different operators to leverage its capabilities and licences, thereby enabling prompt and seamless transactions.
Among the shareholders of Unified Payments are First Bank, Access Bank, United Bank for Africa (UBA), Guaranty Trust Bank Plc, Zenith Bank and Fidelity Bank. Other shareholders are Citibank Nigeria Limited, Ecobank of Nigeria Plc, First City Monument Bank Plc, Keystone Bank Ltd, Polaris Bank Ltd, Stanbic IBTC Bank Plc, Sterling Bank Plc and Wema Bank Plc.
Related
3 hours ago
Rivers State Governor, Sir Siminalayi Fubara, has frowned at the nonchalant handling of Bori internal roads project despite more than 80 per cent of the agreed contractual terms being paid.
3 hours ago
Zenpay Limited, a wholly owned subsidiary of Zenith Bank Plc, has signed an agreement with the African Continental Free Trade Area (AfCFTA) Secretariat for the development and deployment of the SMARTAfCFTA Portal to facilitate trade within the African continent.
4 hours ago
Car hailing service provider, Uber, has strengthened its security features, including audio recording, which “allows drivers and riders to record their trips’ audio with their mobile devices in the event of a safety incident.”
4 hours ago
The Central Bank of Nigeria (CBN) is grappling with the task of devising effective measures to address the persistent instability of the naira within the forex market.
4 hours ago
No fewer than eight persons, including a mother and her child, were reportedly burnt to death in a petroleum tanker explosion at Ometan-Okpe community, along Effurun-Sapele Road, Okpe Local Council of Delta State.
5 hours ago
Deputy Speaker of the House of Representatives, Benjamin Kalu, has expressed gratitude to the President of the Senate, Senator Godswill Akpabio, for supporting the passage of the South East Development Commission Bill through the third reading in the Senate.
5 hours ago
Delta State Governor, Sheriff Oborevwori, has warned against imposition of candidates in the forthcoming local council elections in the state, as the leadership of Peoples Democratic Party (PDP) Aniocha South Council fights over chairmanship slot.
5 hours ago
The Minister of Power, Adebayo Adelabu, has emphasised that the capacity of local manufacturers is not enough to provide the number of electricity metres required to bridge the over seven million metering gap in the country, noting that a combination of importation and local production is essential.
5 hours ago
Lagos State Environmental Protection Agency (LASEPA) has revealed that 367 buildings were shut for violating environmental issues that included noise pollution and improper effluent discharge across the state.
5 hours ago
The arrest and continued detention of a journalist, Daniel Ojukwu, by the Nigeria Police Force (NPF) has generated condemnation from the Coalition for Whistleblowers Protection and Press Freedom (CWPPF).
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.