How To Set Up/Register a Payment Service Provider (PTSP) company in Nigeria
A payment terminal service provider is a fintech company licensed by CBN which has the responsibility of providing POS terminals, its support and maintenance services to customers. Under the new license categorisation for Nigerian payment service providers issued by the Central Bank of Nigeria on the 9th of December, 2023, four categories were made to streamline the permissible activities that can be carried out by fintech companies. One of them is payment terminal service provider which is a sub-category under payment solution services.
Licensed PTSPs are reviewed annually to access their performance targets, where they do not meet up with the targets, their licenses can be withdrawn and fresh licenses issued to qualifying companies. Example of PTSPs are Paymaster, Etop, Citiserve, Valucard and ITEX. Only PSTPs shall be allowed to distribute POS terminals nationwide, any other company that distributes POS terminals without a licence shall be penalized with a daily payment of N50, 000 Naira for the period which the POS’ are deployed.
To obtain a PTSP licence in Nigeria, the following must be done:
- Registration of the company with the Corporate Affairs Commission (CAC). The Memorandum of Association should be restricted to the permissible activities for PTSP including POS terminal deployment and services, POS terminal ownership, payment terminal application developer (PTAD), merchant/agent training, and support.
- The minimum share capital of a PTSP company is N100Million
- An application must be made to the CBN with the accompanying documents.
- The application fee is N100,000 while the licensing fee is N1Million before the issuance of the final license.
- Incorporation documents which include the certificate of incorporation of the company, Memorandum and Articles of Association, Form CAC 2A (return on allotment of Shares), Form CAC 7A (Particulars of Directors) must be submitted alongside the application to the CBN.
- Three years tax clearance certificate (TCC) (if applicable) and the Tax identification number of the company.
- Details of ownership and holding company structure (if applicable); any significant changes in ownership in the last two years.
- Company details, profile and business plan.
- BVN, CV and means of identification of the directors and top management (including one independent non-executive director, chairman and managing director).
- Requisite policies and framework.
- Project deployment methodology.
FEES AND CAPITAL REQUIREMENT
- Escrow of refundable N 100m into CBN PSP Share capital Deposit Account Number 1000014009
- Deposit for escrow must be in full (one lump sum).
- It must be made in the name of the company applying for the license (not an individual or related company).
- Escrowed funds are invested in treasury bills, subject to availability of treasury installment which would be refunded accordingly.
Team 618 Bees
618 Bees can quickly and easily help you register for PTSP Company with the CAC and obtain your License from the CBN. Log on to our website www.618bees.com or email email@example.com, or give us a call on +2349017190079/08080819653. 618 Bees will complete your application with both the CAC and the CBN.
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