Digital payment banks like PalmPay, OPay, Moniepoint, among others have started the implementation of N50 stamp duty collected by the federal government.
The fee, known as the Electronic Money Transfer Levy (EMTL), is charged by the federal government through the Federal Inland Revenue Services (FIRS) on transactions above N10,000.
This move now puts these fintech banks on par with the charges which have been implemented by traditional banks over the years.
Primarily, these neobanks were able to appeal to and win customers based on offering non-payment on transfers compared to the likes of Access Bank, GT Bank, and Zenith Bank.
In a message to customers on Sunday, PalmPay said that it doesn’t benefit from the charges as it goes into the coffers of the FG.
“In accordance with the Electronic Money Transfer Levy (EMTL) regulation of 2022, a #50 levy will be charged on transfers of #10,000 or more paid into your PalmPay account from November 30th, 2024 as mandated by the Federal Inland Revenue (FIRS).
“Please note that PalmPay does not benefit from this levy, it is remitted directly to the federal government,”
On its part, OPay, said it would begin to deduct N50 for electronic transactions above N10,000 in line with the directive of the government.
“Dear customer, in line with the FIRS, the EMTL applies starting from December 1, 2024,” the notice sent by Opay to its customers read.
The federal government has been actively exploring ways to raise the revenue base of Nigeria and this new charge has been touted to generate more money, so the country can reduce its dependency on borrowings.
