The Central Bank of Nigeria (CBN) has allegedly 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.

Digital wallets are seen as deposit-taking firms, and offering such services without approval raises regulatory concerns, which can result in hefty fines or outright license revocation.

Zap partners with Titan Trust Bank

According to reports, Zap operates in collaboration with Titan Trust Bank, which is authorised to accept deposits.

Zap came into the limelight in March when another company, with the same name, filed for copyright violation, saying that Paystack ‘stole’ its name, a claim Paystack refuted.

The development is Paystack’s publicly disclosed regulatory sanction since the apex bank approved its operations in 2016.

The move shows the growing scrutiny facing fintech platforms as they struggle to offer consumer-facing financial services.

Experts have said that if done right, Zap can leverage Paystack’s monumental success in the payment ecosystem to compete with other mobile money operators.

Mobile money operators process $1.8trn in 2024
Legit.ng reported that mobile money platforms such as OPay, Moniepoint, Palmpay, and others processed about 108 billion transactions valued at $1.68 trillion in 2024.

Data from GSMA’s State of the Industry Report on Mobile Money 2025 disclosed this on Tuesday, April 8, 2025.

GSMA’s mobile money programme works to improve the money sector of communities lacking access to traditional banking services.

Mobile money operators increase

The body disclosed that mobile money transaction volumes rose by 20% yearly, while transaction values increased by 16% from 13% in 2023.

According to GSMA, transaction values for mobile money accounts saw a robust double-digit growth last year, hitting 108 billion transactions worth $1.68 trillion.

The amount was processed via mobile money accounts such as Opay, Palmpay, and Moniepoint in one year alone.

The director general of GSMA, Vivek Badrinath, disclosed that mobile money has become a powerful tool for financial inclusion and economic growth as its continued success relies on supportive regulatory frameworks that promote innovation and accessibility, helping to unlock the full economic potential.

Palmpay, OPay announces account changes

Legit.ng previously reported that OPay and Palmpay had announced key changes to how customers get verified on their platforms.

The two digital banking platforms made the changes in response to reports of loopholes exploited by fraudsters when opening accounts.

For OPay, there were changes in the identification method of securing bank accounts during the onboarding process.