Facebook Twitter LinkedIn RSS
    Trending
    • Samsung raises smartphones’ bar with launch of Galaxy Z Fold7, Flip 7 and Flip 7R
    • Jumia replatforms its retail media program to Mirakl Ads to enhance marketplace advertising
    • Nigeria targets 95% digital literacy by 2030
    • The $200 billion quest for reliable electricity, By Elvis Eromosele
    • A2P messaging license to cost N10 million, NCC announces
    • Nigeria Innovation Summit unveil agenda for 10th Conference
    • Vesti to host over 1,500 entrepreneurs, investors, and diaspora leaders at Prosper Conference 2025
    • PalmPay takes on Nigeria’s 90% insurance gap
    Facebook Twitter LinkedIn
    ITPulse.com.ngITPulse.com.ng
    • News
    • Interviews
    • Blogs
    • Analysis
    • Opinion
    • Videos
    • Press Releases
    • Pictures
    • Advertise
    ITPulse.com.ngITPulse.com.ng
    Home»Opinion»PTSA Appointment: From Monopoly to Duopoly?
    Opinion 4 Mins Read

    PTSA Appointment: From Monopoly to Duopoly?

    mmBy ITPulseApril 29, 20246 Views
    Facebook Twitter WhatsApp Pinterest LinkedIn Reddit Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Seyi Johnson

    Mixed reactions have trailed the CBN’s announcement last week on the appointment of UPSL as the 2nd Payment Terminal Services Aggregator (PTSA) in Nigeria, to join NIBSS which effectively held a monopoly of the play for many years.

    Whilst some stakeholders acknowledge the progress this move portends, from the perspective that it’s opened up a previously closed, mono-player control of what is ordinarily a very strategic gateway for payment transactions in an economy that is arguably the largest in Africa, many of the stakeholders whose opinions we sought queried the rationale of moving from a monopoly to a duopoly, with sentiments expressed that there are equally qualified players who could have been saddled with the responsibility, in the interest of the wider industry, especially considering the serious constraints and bottlenecks the operation of a single PTSA created in the 1st quarter of 2023 during the politically-induced cash-crunch crises.

    An industry stakeholder (preferring to comment anonymously) opined “There are fundamental and legitimate concerns about what this could portend for the industry. Moving from a monopoly to what is effectively now a duopoly? Is that progress, why are a few more equally qualified entities not selected, given this is a capability-based selection, and the existence of more PTSAs creates more throughput capacity for the industry collectively? Given the extent of the challenges the entire industry, indeed the whole country; businesses, consumers, you and I grappled with around March 2023, the logic of democratizing this capability by enabling a few more equally qualified players to manage the throughput of transactions is not far-fetched…”.

    The commentator equally highlighted the need for industry stakeholders and associations to rally together to engage the regulators constructively with their concerns.

    According to another e-payments professional within the banking sector, who also opted to weigh in on the debate strictly on the condition of anonymity, “The CBN governor announced a well-meaning ambition to build a $1 trillion economy. Why not use the entire capacity of all licensed switches/payment processors to achieve this audacious aspiration? He further asserted that “In March 2023 during the cashless policy implementation, all banks and payment services providers put together could not carry the capacity of the industry.

    Transactions were failing and systems crashed. Is it only 2 entities that will do it? Even from the perspective of fostering industry innovation through healthy competition which is necessary to achieve a $1 trillion economy, a duopoly does not appear to be the way to go.”

    Interestingly, on interviewing industry participants, another sentiment that was expressed in different quarters was that UPSL which already has a switching license, a Payment service provider license, a merchant acquiring license and owns a payment service bank may be poised to become unduly advantaged over every other player, and as a result, a common theme running through the concerns of respondents is that more than ever before, there is a need for the CBN as industry regulator to ensure that they painstakingly introduce checks and controls to ensure an even ‘balance-of-power’ within the sphere of payment transaction processing which is the lifeblood of commerce in any economy.

    “With this move by the CBN, UPSL may become even more powerful than NIBSS which only had a PTSA license. That potential needs to be clearly acknowledged and actively controlled in the interest of the collective”, opines another respondent. She further reiterated the need to ensure that no industry player or gatekeeper should be inadvertently empowered to use their dominant position, by omission or commission, to push other players out of the market and gain an unfair advantage.

    These are interesting times. In view of recent dynamics such as this, and with the wave of sentiments sweeping across the industry, will the Central Bank be able to put in place regulations that will mitigate any manifestations of anti-competitive practices and assertion of dominance by industry players? Even if the regulator documents the right guidelines in view of addressing such concerns, will they be able to go all the way in actually enforcing these?

    As transactions progressively surge in Africa’s largest consumer economy, will the 2 PTSAs empowered with such a sensitive and defining responsibility be able to rise up to the occasion?

    Time will tell. May we live in interesting times!

    Seyi Johnson is a Public Affairs Commentator based in Lagos

    monopoly PTSA
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    mm
    ITPulse
    • Website
    • Facebook
    • Twitter
    • LinkedIn

    ITPulse is a wholly information technology communication (ICT) news website, with a special focus on the African continent. The website provides up-to-date biz-tech news, analysis and comprehensive and thorough insight into the continent's ICT terrain

    Related Posts

    The $200 billion quest for reliable electricity, By Elvis Eromosele

    July 9, 2025

    Prioritising Security: The Bedrock of Stronger Workplace Collaboration in Nigeria

    July 2, 2025

    The Evolution of Fintech: AI is Steering Fintech’s Transformation, By Bidemi Oke

    June 17, 2025

    Leave A Reply Cancel Reply

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    Latest Posts

    Samsung raises smartphones’ bar with launch of Galaxy Z Fold7, Flip 7 and Flip 7R

    July 10, 2025

    Jumia replatforms its retail media program to Mirakl Ads to enhance marketplace advertising

    July 10, 2025

    Nigeria targets 95% digital literacy by 2030

    July 9, 2025
    About
    About

    Itpulse.com.ng is a wholly information technology communication (ICT) news website, with special focus on the African continent. The website provides up-to-date biz-tech news, analysis and a comprehensive and thorough insight info the continent's ICT terrain.

    Contact us: editorial@itpulse.com.ng

    Facebook Twitter LinkedIn RSS
    Latest Posts

    Samsung raises smartphones’ bar with launch of Galaxy Z Fold7, Flip 7 and Flip 7R

    July 10, 2025

    Jumia replatforms its retail media program to Mirakl Ads to enhance marketplace advertising

    July 10, 2025

    Nigeria targets 95% digital literacy by 2030

    July 9, 2025
    Popular Posts

    Nigeria’s Digital Awareness Programme Wins Top Global ICT Award

    July 8, 2025

    Nigeria Data Protection Commission fines MultiChoice Nigeria N766.2 million for privacy violations

    July 7, 2025

    Samsung raises smartphones’ bar with launch of Galaxy Z Fold7, Flip 7 and Flip 7R

    July 10, 2025
    © 2017 - 2025 Itpulse. Designed by Max Excellence.
    • Terms & Conditions
    • Privacy Policy
    • Advertise
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.