Stanbic IBTC Holdings Plc (NGX: STANBIC) has informed the Nigerian Exchange Limited and the Investing public that it has commenced the process of seeking Regulatory approvals to establish a wholly-owned Financial Technology subsidiary to be known and referred to as Stanbic IBTC Financial Services Limited.
Stanbic IBTC Financial Services Limited on receiving all required regulatory approvals, including licensing by the Central Bank of Nigeria, will function primarily as a Payment Solutions Service Provider (PSSP).
Payment Service Solution Providers in Nigeria are firms that have been licensed by the Central Bank of Nigeria (CBN) to provide a bridging infrastructure, end-to-end electronic payment solutions, systems and services to stakeholders within the financial services space.
The permissible activities under Payment Service Solution Providers licence type are; payment processing gateway and portals, payment solution/application development, merchant service aggregation, Banks, Online Merchants, payment processors, merchants, state governments and consumers connect to PSSPs to meet their electronic payment needs.
On entry into the PSSP market space, Stanbic IBTC Financial Services Limited will be competing against other PSSP heavyweights like Parkway Project Limited, Interswitch WebPay, Flutterwave, PayStack, eTranzact, Remita, VoguePay, KongaPay, Renmoney, GTPay etc.
Yahoo Finance reported in September 2021 that the Global Payment Processing Solutions Market size was estimated at USD 40.75 Billion in 2020 and expected to reach USD 45.00 Billion in 2021, at a Compound Annual Growth Rate (CAGR) 10.75% from 2020 to 2026 to reach USD 75.23 Billion by 2026.