Paystack fined ₦250m as CBN tightens fintech oversight in Nigeria
- The CBN imposed a ₦250 million fine on Paystack for operating its Zap product without the appropriate license.
- Zap, a peer-to-peer money transfer app, requires a microfinance or banking license to function as a wallet.
- Paystack holds a switching and processing license but is not authorized to hold customer funds.
The regulatory landscape for fintech in Nigeria is becoming increasingly stringent, which may stifle innovation if not balanced with support for growth. While consumer protection is essential, the CBN must consider the implications of its actions on the fintech ecosystem, which is vital for economic development.
