BoG issues first license to Fintech company

BoG issues first license to Fintech company

Dr Ernest Addison - Governor, BoG

Local Financial Technology (Fintech) company, Zeepay Ghana Limited, has become the first Fintech company to receive a license from the Bank of Ghana (BoG) to operate in the country.

This is in line with the BoG’s efforts to deepen financial inclusion and in accordance with the Payment Systems and Services Act, 2019 (Act 987).

A release issued by the central bank on April 30 stated that:

“The Bank of Ghana (BoG) has issued its first Dedicated Electronic Money Issuer Licence, to a local Financial Technology (Fintech) company, Zeepay Ghana Limited.”   

The license would authorize Zeepay to operate as a Dedicated Electronic Money Issuer, providing services such as cash in; cash out; P2P transfers (Peer to Peer); bill payments; airtime top-up; and International Money Transfer (IMT).

In the release, the central bank also reiterated its commitment to providing an enabling environment for Fintechs, industry players and other stakeholders, to operate in the payment services space in the country.

BoG’s directive

BoG, last year announced that Fintechs and Mobile Money operators in the country would be required to acquire a license by June 2020 in order to continue operating in the electronic payment space.

The June deadline was, however, recently extended by the BoG to December 2020.

Under the new arrangement, mobile money operators are required to have a minimum capital requirement of GH¢20 million.

In accordance with the new Payments Act law, the central bank also grouped various licenses for payment system providers:

  1. PSP Electronic Money Issuer – GH¢20 million;
  2. PSP Scheme (Payments cards like Visa and MasterCards) – GH¢8 million;
  3. PSP Enhanced Licence (Payment Platforms like ExpressPay etc) – GH¢2 million,
  4. PSP Medium Licence (Sub agents for the payment platforms) – GH¢800,000;
  5. Standard Licence (startups fintech) – No capital required.

Below is the full statement from the Bank of Ghana:

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