Smartcash is a payment service bank (PSB) owned and managed by Airtel Nigeria. The subsidiary launched with the aim of extending financial inclusions to the underserved areas, and not to give loans.
The Airtel's Smartcash works by providing accessible digital banking services to underserved Airtel customers. You can open a wallet via the official website at smartcashpsb.ng, using the USSD code by dialing *939# or using the SmartCash mobile app by downloading it from your phone's app store.
The account opening process requires only an Airtel phone number and basic registration details. Smartcash relies on Airtel’s network to serve both urban and rural areas, allowing users to perform transactions without needing an internet connection or visiting a bank branch.
Once your Smartcash account is created successfully, you can then begin to use it to send and receive money to/from Nigerian bank. Airtel's Smartcash can also be used to pay bills, and top-up airtime or buy data, all through the *939# USSD code or the Smartcash PSB mobile app.
These are the services being offered on Smartcash in Nigeria. Transactions are secure, with funds stored in a digital wallet linked to your Airtel's phone number. The payment bank also supports agent banking, enabling cash deposits and withdrawals via authorized agents across Nigeria.
The agent banking extends financial inclusion to the underserved areas. However, with all these being said, we've not mentioned loan services on Airtel's Smartcash. Yes, that's because Airtel's Smartcash doesn't offer a loan service and cannot offer a lending services unless it step its operating license from the Central Bank of Nigeria (CBN). Let's break it down.
Why Airtel's Smartcash Can't Provide Loan Services
Likewise every other Payment Service Banks (PSBs) like MTN's MoMo, GLO's MoneyMaster PSB, and 9 Payment Service Banks, Airtel's Smartcash cannot provide loan or lending services to customers. Here's why:
- PSBs, like SmartCash, MoMo, 9PSB and MoneyMaster are designed to enhance and extend financial inclusion in the country, focusing on underserved and rural areas. Their ability to offer loans is heavily restricted by the CBN.
- The CBN’s Guidelines for Licensing and Regulation of Payment Service Banks (as of October 2018) explicitly state that PSBs cannot grant loans, advances, or guarantees.
- Although, Telecoms can operate them through subsidiaries, as seen with 9PSB (9mobile) and SmartCash (Airtel). However, they are limited to services like deposit mobilization, remittances, micro-savings, and issuing debit/pre-paid cards.
Related: The Differences Between PSB and MMO Licenses in Nigeria.
In a nutshell, PSBs like Smartcash and MMOs like OPay aren't allowed by the CBN to offer loan services. Any loan offerings associated with telecom-linked services or mobile money operators would require partnerships with licensed financial institutions, such as microfinance banks (e.g., OPay’s partnership with BlueRidge MFB to integrate Easemoni within the OPAY app).
New Zealand's SmartCash Gives Loans
Smartcash Limited—a New Zealand-based online payday loan provider—is the only SmartCash offering loans to individuals and businesses. The New Zealand's SmartCash offers short-term cash loans ranging from NZ$100 to NZ$500.
The loan company focuses on fast approval and low interest rates for payday advances. The loan repayment terms also aligns with borrowers' paydays. In addition to that, SmartCash Limited services are regulated under the Credit Contracts and Consumer Finance Act 2003 in New Zealand.
In conclusion, the SmartCash referenced at https://www.smartcash.co.nz/ is a New Zealand-based payday loan provider, Smartcash Limited, offering short-term cash loans, and is not affiliated with Airtel's SmartCash, which is a digital banking and mobile money service in Nigeria. They are distinct entities with different services and regions of operation.
This article has been updated to reference SmartCash Limited—a New Zealand-based online payday loan provider—to clarify the differences between the company and Airtel's SamrtCash.
Author's Note
