PocketApp, the social
payments subsidiary of PiggyVest, a Nigerian digital asset management platform,
has been granted an approval in principle (AIP) to operate as a mobile money
operator (MMO) in Nigeria.
The approval from the
Central Bank of Nigeria (CBN), the country’s apex monetary authority, came in on April 25, the company disclosed.
PocketApp, which just
rebranded from Abeg, a money transfer app, announced the approval on Monday in
a statement shared with Finance Magnates.
The social payment firm
said the approval “ is the first step towards final approval subject to the
fulfilment of certain conditions as stipulated by the CBN.”
The fintech company
further said the development is an important step in its bid to power smooth payments and online commerce in Nigeria.
Patricia Adoga, the Chief Operating Officer of PocketApp, said the company has been building the core infrastructure to
support social commerce and payments at scale for over a year and half.
“We believe that social commerce will thrive better in a more trusted environment. So we added escrow to our payment infrastructure, protecting buyers and sellers and many other features, ensuring a smooth shopping experience on the app,” Adoga said.
What Can the MMO License
Do?
With the mobile money
operator license, PocketApp said it will be able to create and manage digital
wallets and issue electronic money, among other endeavors permitted by the CBN.
Odunayo Eweniyi, the
Co-Founder and COO of PiggyVest, noted that the full operating license will
enable the company to further the growth trajectory of PocketApp and the company’s other digital financial products.
Furthermore, the MMO license will make it possible for the fintech firm to reach millions of
micro-entrepreneurs in Nigeria.
The Co-Founder noted
that the company will work closely with CBN to meet all its conditions to
receive the full operating lincense.
“PocketApp affirms its
commitment to the financial inclusion agenda of the CBN and the Federal
Republic of Nigeria and will continue to make it easier for our teeming young
population to seamlessly carry out their transactions, while saving them costs
and giving them more access to get paid,” PocketApp said in the statement.
New Actors in Nigeria’s Payments
Industry
In Nigeria, the use of
digital channels for payments has been on the rise over the past several years.
In late May, two of
Africa’s telecommunication giants, MTN Nigeria, and Airtel Africa, said their payments subsidiaries were kick-starting operations.
This was after the telco
giants got full licenses from the CBN to run a
payment service bank in the country.
Like PocketApp, MTN
Nigeria and Airtel Africa stated that they want to drive inclusion in Nigeria’s
payments industry.
However, if the telco
giants will be able to disrupt Nigeria’s payment industry, experts told Finance Magnates, then they must overcome the issues of trust, adoption, and acceptance.
PocketApp, the social
payments subsidiary of PiggyVest, a Nigerian digital asset management platform,
has been granted an approval in principle (AIP) to operate as a mobile money
operator (MMO) in Nigeria.
The approval from the
Central Bank of Nigeria (CBN), the country’s apex monetary authority, came in on April 25, the company disclosed.
PocketApp, which just
rebranded from Abeg, a money transfer app, announced the approval on Monday in
a statement shared with Finance Magnates.
The social payment firm
said the approval “ is the first step towards final approval subject to the
fulfilment of certain conditions as stipulated by the CBN.”
The fintech company
further said the development is an important step in its bid to power smooth payments and online commerce in Nigeria.
Patricia Adoga, the Chief Operating Officer of PocketApp, said the company has been building the core infrastructure to
support social commerce and payments at scale for over a year and half.
“We believe that social commerce will thrive better in a more trusted environment. So we added escrow to our payment infrastructure, protecting buyers and sellers and many other features, ensuring a smooth shopping experience on the app,” Adoga said.
What Can the MMO License
Do?
With the mobile money
operator license, PocketApp said it will be able to create and manage digital
wallets and issue electronic money, among other endeavors permitted by the CBN.
Odunayo Eweniyi, the
Co-Founder and COO of PiggyVest, noted that the full operating license will
enable the company to further the growth trajectory of PocketApp and the company’s other digital financial products.
Furthermore, the MMO license will make it possible for the fintech firm to reach millions of
micro-entrepreneurs in Nigeria.
The Co-Founder noted
that the company will work closely with CBN to meet all its conditions to
receive the full operating lincense.
“PocketApp affirms its
commitment to the financial inclusion agenda of the CBN and the Federal
Republic of Nigeria and will continue to make it easier for our teeming young
population to seamlessly carry out their transactions, while saving them costs
and giving them more access to get paid,” PocketApp said in the statement.
New Actors in Nigeria’s Payments
Industry
In Nigeria, the use of
digital channels for payments has been on the rise over the past several years.
In late May, two of
Africa’s telecommunication giants, MTN Nigeria, and Airtel Africa, said their payments subsidiaries were kick-starting operations.
This was after the telco
giants got full licenses from the CBN to run a
payment service bank in the country.
Like PocketApp, MTN
Nigeria and Airtel Africa stated that they want to drive inclusion in Nigeria’s
payments industry.
However, if the telco
giants will be able to disrupt Nigeria’s payment industry, experts told Finance Magnates, then they must overcome the issues of trust, adoption, and acceptance.
