NIBSS Directive: Paystack, Opay, Others Reassure Customers

Nume Ekeghe

Prominent Nigerian fintech companies have reacted to a recent directive from the Nigeria Inter-Bank Settlement System (NIBSS), prohibiting non-deposit-taking financial institutions from receiving funds through the National Instant Payment System (NIPS).

The directive, issued had sparked concerns among some users about the impact on popular fintech platforms like Flutterwave, Paystack and Opay.

NIBSS last week issued a directive signed by its Managing Director Premier Oiwoh stating: “This is to bring to your attention that listing non-deposit taking financial institutions such as Switching Companies (Switches), Payment Solution Service Providers (PSSPs) and Super Agents (SA) as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria dated February 2014. For clarity, Switches, PSSPs and SAs may process outward transfers as inflows to Banks but are not to receive inflows as their licenses do not permit them to hold customers’ funds.”

Following the NIBSS directive, several fintech companies swiftly took to social media to reassure their customers that their services remain unaffected.

 For instance, Flutterwave on its website stated: “ Flutterwave is actually not affected and continues to serve its customers as usual. Indeed, Flutterwave is a licensed Switching and processing company that has from inception worked with our deposit-taking bank partners to process payments. As a non-deposit-taking financial institution, we can process outward payment,  which means; send money to other banks on behalf of our customers. But, we do not hold money or directly receive deposits because that process is managed by the deposit-taking banks we work with.”

Responding, Paystack in a tweet stated: “Hi team, we wanted to reassure you that the recent NIBSS circular does not impact Paystack-Titan or any other Paystack services. We developed Paystack-Titan in partnership with Titan Trust Bank in a way that allows the service to operate compliantly, and it passed review from NIBSS.”

On its part, Opay said: “We wish to state that OPay is not affected by the recent circular published by NIBSS. The focus is on Payment Service Solution Providers, Switches and Super Agents. OPay is a Mobile Money Operator (MMO) licensed by the CBN and insured by the NDIC.”