Globacom, one of Nigeria’s leading Network Operators, has launched a Payment Service Bank. The company’s MoneyMaster, which got licenced by the Central Bank of Nigeria (CBN) in September 2019 after they met CBN’s financial requirement of N5.35 billion, is dedicated to providing financial services to millions of Nigerians who are unbanked and underbanked.
The company joins competitors 9Mobile, MTN, and Airtel in operating payment services in the country. The main objective of these PSBs is to enhance financial inclusion.
Globacom has stated in a press release that MoneyMaster PSB will, along with other PSBs, facilitate payment and remittance services within Nigeria, accept deposits from individuals and small businesses, issue debit and prepaid cards, operate electronic wallets, inbound remittances and carry out other services in line with CBN regulations.
The press release reads thus; “Our over-arching business objective remains to empower Nigerians by providing them with unlimited opportunities. MoneyMaster extends that objective as it targets the unbanked and under-banked with G-Kala, its flagship product, in order to deepen financial inclusion in Nigeria.
Read also: Fintech and Edtech investments dominate South African venture capital
MoneyMaster, a Payment Service Bank
MoneyMaster is taking off with a huge advantage as it is expected to make use of Globacom’s pan-Nigeria spread and extensive agent footprint in the rural and urban areas to achieve its objective of massive roll-out.
To open an account, all the customer needs to do is dial*995# and then follow the prompts from a Glo line or any other telecommunications network, as MoneyMaster PSB is network agnostic.
Just as Globacom revolutionized the telecom industry with cutting-edge technology and unique products when it started operations in 2003, MoneyMaster PSB is positioned to redefine the payment service banks’ landscape while driving financial inclusion in Nigeria.
One key feature of MoneyMaster’s G-kala product is that the customer’s phone number will be used as his or her account number. We are grateful to the CBN for the opportunity to deepen financial inclusion in Nigeria using our cutting-edge technology and vast network”.
More about Nigerian Payment Service Banks
In rural areas and any other part of Nigeria where they exist, Payment Service Banks use technology to mobilize deposits and facilitate transfers from unbanked consumers.
The Central Bank of Nigeria (CBN) gave official approval to telecommunication operators to offer mobile money services in Nigeria as the industry regulator issued final approval to three firms (Hope PSB, Globacom-Moneymaster PSB and 9mobile-9PSB) to operate as Payment Service Banks (PSBs) in September 2019. Other Network operators have also received licences after that.
The structure of the banks includes the fact that they shall, among other requirements, operate mostly in rural areas and unbanked locations targeting financially excluded persons, with not less than 25% financial service touch points in such rural areas as defined by the CBN from time to time
PSBs can partner with card scheme operators. Such cards are, however, not eligible for foreign currency transactions. ATMs and Point of Sale devices can also be deployed in some underbanked areas.
A PSB license allows the companies to, among other things; maintain savings accounts and accept deposits from individuals and small businesses, which is covered by the deposit insurance scheme; carry out payments and remittance (including cross-border personal remittance) services through various channels within Nigeria; issue debit and prepaid cards, and operate an electronic purse or wallet.
For a company to obtain the licence to operate as a payment service bank, the CBN said it would have to provide the “Minimum capital N5,000,000,000.00, Non-refundable application Fee N500,000.00, Non-Refundable Licensing Fee N2,000,000.00 and change of name fee N1,000,000.00,” as complied from the new circular that has the guideline issued by the central bank for licencing and regulation of Payment Service bank.
Functions of the Payment Service Banks include;
1. Accept deposits and withdrawals from individuals and small businesses
2. Issue debits and prepaid cards in its name
3. Operate electronic wallet
4. Issue financial advice
Carry out such other activities as may be prescribed by the CBN from time to time.
Although the PSB license operators are granted licenses to complement commercial banks, they are limited from performing other activities, which include;
Grant loans
1. Accept foreign currency deposits and deal in foreign exchange markets.
2. Granting insurance products.
3. Accept any closed scheme electronic value (e.g. airtime) as a form of deposit or payment.
About MoneyMaster
Globacom’s ‘MoneyMaster’ Payment Service Bank Limited was registered on September 27, 2019, as a Private Limited Liability Company and duly licensed by the Central Bank of Nigeria as a Digital Bank delivering financial inclusion services.
About Globacom
Globacom Limited, commonly known as Glo, is a Nigerian multinational telecommunications company founded on 29 August 2003 by Mike Adenuga. With well over 55 million subscribers in Nigeria and racks up about $1.5 billion in annual revenue, the company has since expanded its operation into Ghana and Benin Republic.