In a strategic push to expand its footprint in Nigeria’s digital finance sector, MTN Nigeria’s MoMo Payment Service Bank (PSB) is seeking two new licences—Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP)—a move that could significantly reshape the competitive landscape for fintech services in Nigeria.
Typically, PSBs are granted limited licences focused on driving financial inclusion in underserved regions through basic banking functions. However, MoMo PSB’s application for these additional licences would enable it to manage payment terminals and provide backend payment processing, positioning it to support in-store and online transactions for a broader range of merchants and customers. This shift could open new avenues for MoMo PSB to operate similarly to established digital payment providers, competing with names like OPay, Paystack, and even traditional banks.
With an extensive network of agents and millions of active wallets, MoMo PSB is already a dominant player in Nigeria’s fintech ecosystem. Securing these licences would mark a strategic expansion of its capabilities, allowing MoMo PSB to offer diverse payment solutions and potentially rival existing platforms that have long held sway in the Nigerian digital payments market.
For MTN, this is more than a business expansion; it aligns with the company’s broader goal to deepen financial inclusion and digital access in Nigeria. By leveraging its telecom infrastructure and extending MoMo’s service offerings, MTN aims to provide more versatile payment options to Nigeria’s largely unbanked and underbanked populations. This move also hints at a potential regulatory shift in Nigeria, where increased flexibility for telecom-led financial services could help bridge the gap in financial access for millions.
If MoMo PSB’s application is successful, it could set a precedent for other PSBs to pursue similar licences, encouraging competition and innovation in Nigeria’s fast-growing fintech space. This would further empower telecom-driven financial services as a vital component of the country’s digital economy, transforming how Nigerians access and utilize financial services.
