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CBN Regulating Mobile Payment Service? How? Why? What Is "Mobile Payment License" - Business - Nairaland

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CBN Regulating Mobile Payment Service? How? Why? What Is "Mobile Payment License" by plutonian: 6:17pm On Dec 05, 2011

Hi Everyone,

I have been actively following the developments in the mobile payments industry. Even with my participation, I am a bit (or should I say a lot :-) ) confused on the exact position/powers of the CBN/Governor (i.e. SLS) as relates to mobile payments services, which is/will be the next boom in Nigeria/Africa (it already is in some countries). I have gone through the CBN Acts (as revised), BOFIA Acts, etc, but I am yet to see specific direction/authority granted to the CBN/Governor to regulate this upcoming industry which is technically not a part of the “financial industry” per say (and some of the participants/incoming providers are not financial institutions too according to the Acts – they ONLY provide “access to” the financial industry/services, which is a NECESSITY as we can see in other countries where it is/has succeeded).

So except I am missing something/don’t fully understand something, how does the CBN come into play/assume power to regulate the mobile payment system/area in this our economy? (I have read their “guidelines & circulars/bills” [e.g. mobile payment regulatory framework, payments bill, etc,] where they take on and exert authority in these areas, but I am yet to see/understand how they got the power/authorization to regulate these areas.
Using other countries as example (foremost coming to mind is Paypal, or even M-PESA in Kenya, Tanzania… ), their “Central Banks” don’t really regulate this area directly. Paypal specifically for example is not a bank, and they are actually regulated by individual states in the US, as opposed to the “US Central Bank or Government” (even though they ensure to abide by like “money-laundering prevention regulations”, and other such regulations set by the US Govt/Bank).

So really, what should be the position of the CBN for our economy in these areas?

Let’s discuss, and get enlightened. Thanks guys.

(Moderator/Seun, if you can please bump to front page so everyone can be brought onboard so we can discuss this, that would be wonderful. I think it will really help the industry develop. I believe it’s high time the younger generation gets onboard to understand how these our different “regulatory bodies” perform their duties, and what power/authority they have exactly. Thanks Seun).

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