Opay and Palmpay ceased operations due to NIBSS Orders, driven by evolving policies, often influenced by government decisions.
Have you ever questioned why your Opay and Palmpay apps suddenly stopped functioning today ? It’s a result of the Nigerian Interbank Settlement System Plc (NIBSS), enforcing alterations in the conventional policies of banks and mobile banking.
Nigerians resist stress, always seeking a way out, guided by the ‘Naija’ spirit within us. NIBSS envisions Nigerian banks excelling in their functions, particularly in facilitating secure, automated interbank payments and efficient fund transfers.
The Inter-Bank Agency now requires Nigerian banks to discontinue involvement with non-deposit-taking financial entities in their Nigerian Interbank Payment (NIP), outward fund transfer channels Entities like “Switching Companies (Switches), Payment Solution Service Providers (PSSPs), and Super Agents (SA)” highlighted in the NIBBS circular play pivotal roles in the nation’s digital financial ecosystem, providing various transaction services across platforms like USSD, mobile banking apps, Point of Sale (POS) systems, ATMs, and online banking.
As per the circular, Opay, Palmpay, and other fintech apps might temporarily stop receiving funds or experience functionality issues. Notably, “Switches, PSSPs, and SAs may process outward transfers as inflows to banks but are not permitted to receive inflows, given their licenses’ restrictions on holding customers’ funds.”
This directive leads to the exclusion of fintech platforms without proper banking licenses from the list of banks authorized to receive funds from bank channels. While these affected fintech companies can still facilitate outward bank transfers, they are barred from receiving customer inflows.
The anticipated response involves exploring the acquisition of banking licenses to legally manage and hold client funds. This regulatory shift could profoundly impact small business owners reliant on such platforms for financial transactions.”
Meanwhile, Opay, one of the leading fintech platforms has assured customers that they are not affected by the NIBBS new policy. The financial company made this known on X today.
“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. Your funds are safe and secure with OPay.” the company reiterated.
