ABUJA, Nigeria – The Central Bank of Nigeria (CBN) has imposed a ₦250 million (approximately $190,000) fine on Nigerian fintech giant Paystack for allegedly operating its peer-to-peer payment app, Zap, in violation of regulatory guidelines, according to a report by TechCabal.
The sanction centres on the apex bank’s classification of Zap as a deposit-taking product — a designation reserved for entities licensed as banks or microfinance institutions.
Paystack, however, only holds a switching and processing licence, which permits the facilitation of transactions but not the holding of customer deposits.
Launched in March, Zap allows users to send and receive money in a seamless peer-to-peer format, effectively functioning as a consumer-facing digital wallet.
The CBN reportedly flagged this feature as exceeding the scope of Paystack’s approved licence.
While Zap does not directly hold customer funds — instead partnering with Titan Trust Bank, a deposit-taking institution — the CBN is said to have raised concerns over compliance with its wallet service framework.
Digital wallets in Nigeria are tightly regulated and considered equivalent to depository accounts, requiring specific licensure.
In a statement, Paystack said: “Paystack is working closely with the regulator as they further review Zap, and out of respect for the process, we won’t making any public comments at this time.”
