Airtel Africa on Friday announced that it has received approval in principle from the Central Bank of Nigeria to operate its subsidiary Smartcash Payment Service Bank Limited business in Nigeria.
The leading telecommunications and mobile money services company disclosed in a statement signed by Simon O’Hara, Group Company Secretary.
Approval in principle (AIP) means the central bank has agreed to approve Smartcash payment service subject to meeting certain conditions.
Airtel Africa said the conditions must be satisfied within six months.
Speaking on the new payment licence, Segun Ogunsanya, CEO, Airtel Africa, said: “I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating licence and commence operations.
“The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services. I am looking forward to working closely with the Government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy.”
Meanwhile, MTN Nigeria has also received the same approval in principle for its MOMO proposed payment service. The decision to procure payment licences by the two leading telecommunications giants in Africa’s largest economy is to allow them tap into the growing fintech space in Nigeria by leveraging on their huge existing subscribers.
As of June, MTN Nigeria has a total of 73.57 million subscribers, down from 80.764 million recorded in December 2020, while Airtel has 50.666 million subscribers, also down from 54.840 million in December. The two telecommunications companies are looking to sell their payment services to their existing customers, the largest in the country as of today.
This would allow them to compete effectively with the likes of Flutterwave, OPay and other fintech startups already operating in Nigeria.