Over the last few years, electronic payment transactions in Nigeria have recorded significant growth and this momentum shows no signs of slowing down. A key participant in the facilitation of electronic payment transactions in Nigeria is the Payment Solution Services (PSS) provider, an umbrella term covering three (3) subcategories of licensees: Payment Solution Service Provider (PSSP); Payment Terminal Service Provider (PTSP); and Super-Agent.
These entities support the payments ecosystem by providing infrastructure, software, and services that facilitate electronic transactions. Given the strategic value of the PSS licence, more businesses are seeking direct entry points into the payments value chain.
Ultimately, a PSS licence represents more than just access to the payments industry, it is a regulatory endorsement of the licensee’s financial and technical capacity to operate in a sensitive and highly regulated environment.
As such, whether pursuing an acquisition or a fresh application, any transaction involving a regulated business must be handled with clarity, precision, and full regard for the regulatory requirements. With proper structuring and proactive engagement with the CBN, it is possible to successfully commence operations as a PSS licensee in Nigeria in accordance with the regulatory framework.
In this newsletter, we highlight the options available to acquire a PSS licence under Nigerian law and key
considerations for each option.
