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CBN Fines Paystack N250 Million For Operating Zap Wallet
May 1, 2025
The Central Bank of Nigeria (CBN) has fined Paystack N250 million for operating Zap as a deposit-taking wallet
The apex flagged the platform after it emerged that it operated as a deposit-taking platform, a function reserved for microfinance banks
Paystack holds a switching and processing license, allowing it to facilitate transactions and not hold customers’ funds.
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) has fined Paystack N250 million for operating Zap, the company’s peer-to-peer payment app, as a wallet in violation of its regulatory licence.
CBN flagged the new platform as a deposit-taking product, a function of microfinance or a banking license.
Zap allows users to send and receive money
Zap, which was launched in March, allows users to send and receive money, making it a consumer-facing digital wallet.
According to reporting by TechCabal, Paystack holds a switching and processing license, allowing it to facilitate transactions and not hold customers’ funds.
The limitation is the reason CBN fined the payment company, the report said.
Paystack is working to resolve the issues
The company reportedly disclosed that it is working closely with CBN as it reviews Zap’s operations, and said it will not make further comments on the issue.
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