The Differences Between PSB and MMO Licenses in Nigeria

The Differences Between PSB and MMO Licenses in Nigeria

Many Nigerian fintech companies are operating with either Payment Service Bank (PSB) License or Mobile Money Operator (MMO) License. These two Licenses may seem similar but have their own different unique functions. For instance, regular users that don't know the core functionality of banking system will find it difficult to identify the differences between MTN's MoMo PSB and OPAY? I'm not talking about their popularity or their customer base. I mean, how they're different in what they're offering to customers. Both companies allow users to send and receive money locally, recharge and top-up their mobile network, offers personal wallet using user's phone number, and business accounts (merchant) accounts to cater for underserved areas. So, what's the real differences between them? Well, I know you maybe thinking about offering of loans and savings features. No, that's not the point; neither the PSB nor the MMO licenses allow banks to offer loans in Nigeria. …