The Central Bank of Nigeria has imposed a ₦250 million fine on Paystack for offering wallet-like services through its peer-to-peer payment app, Zap, in violation of its approved licence terms.
Zap, launched in March, allows users to send and receive money, effectively operating as a digital wallet. However, the platform’s structure has drawn regulatory scrutiny, with the CBN categorising it as a deposit-taking product, a designation restricted to firms holding microfinance or banking licences.
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Paystack is only licensed to act as a transaction switch and processor, without the authority to hold customer funds. The development coincides with an ongoing legal row between Paystack and Zap Africa, a crypto startup, over alleged trademark infringement relating to the app’s name and branding.
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