Nigeria News: CBN Fines Paystack ₦250 Million
The Central Bank of Nigeria (CBN) has levied a ₦250 million fine on Paystack over regulatory breaches in its peer-to-peer app, Zap, according to TechCabal. This penalty arose because Zap, launched in March, was flagged as a deposit-taking product despite Paystack lacking the required banking licence for such operations.
The fine highlights increased scrutiny as fintech firms in Nigeria, like Paystack, shift from enterprise to consumer services. Zap, although not directly holding funds, operates with Titan Trust Bank’s backing. This complexity underscores the challenges in Nigeria’s financial regulatory landscape.
- Key Takeaways:
- Zap operates under a non-banking licence, raising compliance issues.
- Legal disputes with Zap Africa add pressure on Paystack.
- Nigeria’s financial regulations demand strict licensing for digital wallets.
For more details, visit TechCabal.
Discussion Prompt: How should fintech companies navigate regulatory landscapes in rapidly evolving markets like Nigeria’s?
