MTN Nigeria yesterday announced the full commencement of its MoMo Payment Service Bank (PSB). This followed the approval of its licence by the Central Bank of Nigeria (CBN) in April this year.
Interestingly, the PSB model of banking has come as one of the easiest and most convenient ways to bank in Nigeria. As a PSB, MoMo can collect deposits and offer savings accounts to its consumers. Individuals and small enterprises are among their clients. It can also facilitate cross-border transfers through all of Nigeria’s available methods.
According to the guidelines of the Central Bank of Nigeria, the key objective of issuing PSB licenses is to boost financial inclusion, especially in rural areas and facilitate transactions.
How MTN MoMo PSB will operate
- MTN will be permitted to use its technology and agency banking to mobilize deposits and enable transfers from unbanked consumers in rural regions and any other location in Nigeria where they exist.
- It is expected to operate in rural areas and areas where Nigerians do not have bank accounts. This indicates that MTN expects to have at least 50% of physical access points (also known as kiosks) in rural areas.
- MTN would start to deploy ATMs in some locations to enable Customers’ withdrawal of cash just like commercial banks.
- However, the key contrast is that, whereas deposit commercial banks can provide loans and advances, MTN cannot.
- Whilst many consider them a competition to banks, they actually are meant to complement the efforts of banks, since their deposits should also be placed with any bank of their choice.
How to open and fund the account
MoMo PSB makes its account opening simple as you can do that by just dialling *671# and inputting a 4-digit pin.
You can transfer money from another bank account into your MoMo PSB wallet by doing the following:
- Go to your other bank app and choose ‘AccessYello and Beta’ as the bank name (Soon to be replaced by MoMo PSB)
- Input your MoMo PSB number without the first 0 as account number, i.e. ‘8032001234’
- You can also deposit money into your MoMo PSB wallet at MoMo agents.
- You can withdraw cash from your MoMo PSB wallet by visiting a MoMo Agent or transferring to other banks. The PSB currently has 166,000 active agents across the country.
What you can do on MTN’s PSB
As an individual, you can make purchases, pay bills, send, receive and save money in an affordable way. Your phone is your connection to your money when you transact with MoMo.
Business owners are also not left out. As a business owner, whether you are a small business looking for a mobile way to manage finances, or a big business looking for an easier way to pay staff salaries, MoMo PSB offers a range of solutions to increase efficiency and decrease your operating costs.
On your phone and app, you can:
- Buy airtime & bundles
- Pay bills
- Save money
- Collaboration: Request payments, create bills, upload invoices, and collect payments from your customers.
- Disbursements: Pay suppliers, employees, or any groups of people with the MoMo Business bulk disbursement interface.
- Financial Services: Financial loans and savings to accelerate your business growth.