MTN Nigeria, the country’s largest telecom operator, has applied for two new licenses for its fintech arm, MoMo PSB, aiming to broaden its digital payment capabilities in Nigeria.
The Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licenses signal MTN’s deeper commitment to the fintech space, positioning MoMo PSB as a competitive player.
Why it matters
With these licenses, MoMo PSB would be equipped to reduce internal processing costs, expand services to merchants, and challenge major players in Nigeria’s payment processing and POS markets, including Interswitch, Flutterwave, Moniepoint, Opay, and Palmpay.
Key details
- PSSP License: Allows MoMo PSB to offer payment gateways, financial solutions, and merchant aggregation services. This could reduce MTN’s reliance on third-party payment processors, keeping more revenue in-house.
- PTSP License: Enables MoMo PSB to deploy and maintain POS terminals, providing applications, training, and support to its network of over 302,000 merchants and 5.3 million users.
Competitive landscape
If approved, MoMo PSB will be up against established payment platforms, especially in the POS market, creating new competition in Nigeria’s rapidly growing digital finance ecosystem.
By the numbers
- MTN paid ₦200 million for these applications, as disclosed in its Q3 2024 report.
- MoMo PSB’s Q2 2024 metrics show 5.5 million active digital wallets and a network of 302,800 agents and merchants.
What’s next
A payment provider license in Nigeria requires a ₦100,000 application fee and a ₦100 million license fee upon final approval—an investment MTN is betting on to cement MoMo PSB’s role as a full-fledged fintech competitor.
Source: TechCabal
