Nigerian Fintech startup, TeamApt has secured a switching license from the Central Bank Nigeria (CBN). This was announced on the company’s social media handle. The license which allows the startup to work as a payment switch in Nigeria also supports one of the startup’s product, a payment infrastructure called AptPay.
This announcement is coming weeks after the startup raised $5.5 million capital in a Series A round led by Quantum Capital Partners last month. The new license would aid the startup’s goal of providing solutions for different customer segments in Nigeria.
According to the startup’s CEO, Tosin Eniolorunda, this is the highest license awarded to any fintech by the CBN as it allows TeamApt to put all the banks together and be able to debit their banking position with the central bank.
What Does a Switch License Mean for the Startup?
Switch licensed companies offer electronic funds transfer, transaction switching and processing service to consumers. If a buyer pays a merchant through a payment getaway, and there is need to credit the merchant immediately, without a switch licence the payment getaway provider would need to utilise its own money for the transaction.
But now with a switch license, TeamApt would be able to facilitate the exchange of value between financial service providers, merchants, their customers and other stakeholders without tying down its money.
This license is very important for TeamApt’s new product, AptPay. The payment infrastructure processes payment, powering interbank transfers, and direct debits (collection of payments by banks and fintechs, initiating debits on customers accounts directly).
This license also puts TeamApt on the same level as other Tier-1 financial technology companies and other private switching companies like Interswitch, eTranzact, 3Line and Unfied Payments (UPSL).
TeamApt also Planning African Expansion
The startup which currently has a client base of 26 African banks is also planning to scale across Africa. The startup is reportedly in talks with six banks in Ghana with expansion plans underway in Tanzania.
We are aggressively expanding internationally. A lot of Ghanaian banks have qualified our solutions and already bringing it on board to optimize their back office processes. Tanzania is also on our mind, we have a couple of banks that are looking hard at using our solutions to move their banking systems forward.
TeamApt CEO, Tosin Eniolorunda.
In addition to its African expansion, the startup is also planning to expand to Latin America by the third quarter of this year.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
