How to obtain a Payment Terminal Service Provider (PTSP) License in Nigeria

A PTSP is an entity or payment channel licensed by the Central Bank of Nigeria (CBN) and saddled with the responsibility of ensuring the fluidity and infrastructural suitability of POS operations. Consequently, only licensed PTSPs are permitted to deploy POS terminals nationwide.

The procedure for obtaining a PTSP license is controlled and regulated by CBN and an application for same can only be made after the entity has been registered with the Corporate Affairs Commission (CAC). An applicant for a PTSP license must:

• be a company incorporated with the CAC. The memorandum of association should be restricted to the permissible activities for PTSPs including POS terminal deployment and services, POS terminal ownership, Payment Terminal Application Developer (PTAD), merchant/agent training, and support;
• possess a capital requirement of N100 million of shareholder’s funds unimpaired by losses;
• make a deposit of a refundable lump sum of N100 million into the CBN PSP Share Capital Deposit Account. This deposit must be made in the name of the company applying for the license; and
• pay the Application fee of N100,000 (One Hundred Thousand Naira) to the CBN via the Licensing Fees for Payment Products account.

An application for a PTSP license must be addressed to the Director of the Payments System Management Department of the CBN and must be accompanied by all the documents required under the CBN guidelines. Some of the required documents include:

1. Proof of payment of the application fee;
2. Certificate of Incorporation of the company;
3. Memorandum & Articles of Association;
4. Form CAC 2A (Return on Allotment of shares);
5. Form CAC 7A (Particulars of Directors);
6. Tax Clearance Certificate for three (3) years of the company (if applicable) and Taxpayer Identification Number (TIN) of company;
7. The Audited Financial Statement of the company for three (3) years preceding the application (if applicable).
8. Organogram;
9. Business Plan.

Upon payment of the application fee, CBN grants an approval in principle, which subsists for six (6) months, pending the grant of a final license. Once a final license is issued, the company must pay a licensing fee of N1,000,000 (One Million Naira) to the CBN which is non-refundable.

The validity period of the license issued is determined by the CBN upon satisfactory performance of operations by the company.

Team 618 Bees

618 Bees can quickly and easily help you obtain a PTSP License from the CBN. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079/08080819653 so we can complete your registration with the CBN.

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