Paystack reassures its customers to remain calm amid the recent instructions from NIBBS regarding the disconnection of non-deposit financial institutions from fund transfer channels. The company has stated on X (formerly Twitter) that these directives from NIBBS will not affect its services. Paystack clarified that it has established a partnership with Titan Trust Bank to process payments, ensuring its continued operations despite the NIBBS directive.
Paystack’s relationship with Titan Trust Bank
The Company Said:
“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.”
The Nigeria Interbank Settlement System (NIBSS) issued a circular to commercial banks instructing them to disconnect non-deposit financial institutions from NIBBS Instant Payment (NIP) fund transfer channels due to the violation of CBN guidelines. This directive impacts various financial institutions such as switching firms, payment solutions service providers, and super agents, and it applies to a range of NIP fund transfer channels, including USSD, mobile banking apps, PoS, ATMs, and web and internet platforms.
NIBBS clarifies non-deposit financial institutions
The circular Said:
“Listing non-deposit-taking financial institutions such as switching companies (switches). Payment Solution Service Providers (PSSP) 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.”
The circular from NIBBS indicated that these financial institutions would face restrictions from receiving funds but would retain the ability to process payments into banks.
“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,” the circular said.
According to Punch reports, entities operating in Nigeria are required to acquire at least one of the following licenses from the Central Bank of Nigeria (CBN): Switching and Processing, Mobile Money Operations, Payment Solutions Services, or Sandbox licenses. The CBN has specified that only Mobile Money Operators are permitted to hold customer funds.
“An Unsettling Day”: Paystack Lays off 33 Employees, CEO Clarifies Move, Reveals 4-Month Compensation Package
Softmadtion.world has reported that Paystack, a Nigerian payment platform, recently made an announcement regarding the termination of 33 employees based in Europe and the United Arab Emirates (UAE). Shola Akinlade, the CEO and co-founder of Paystack, revealed this information in a post on X (formerly Twitter) on Thursday, November 16, 2023.