One of Nigeria’s fintech firms, 3Line Card Management Limited, has adduced reasons it decided to opt of payment transaction switching services.
The firm in a statement, noted that payment transaction switching services is no longer aligns with its overall business strategy, following the recent revocation of the operating licenses of 42 microfinance banks (MFBs) in Nigeria by the Central Bank of Nigeria (CBN).
The apex bank had recently announced the revocation of licenses of seven payment service providers and one switch service provider due to their inability to meet up with their statutory obligations and conditions of the regulator.
Referring to the revocation, 3Line Limited said it was not surprised that Central Bank of Nigeria (CBN) included 3Line card management Limited among those who licenses were revoked for failure to comply with regulatory obligations and ceasing to carry on with business for which they had been licensed for a continuous period of six months.
The statement signed by the company’s Managing Director and Chief Executive Officer, Femi Omogbenigun, the company disclosed that it had informed the regulatory authority that it no longer interested in operating the license.
“We actually wrote to CBN earlier this year, requesting that we want to put the license on hold as we weren’t doing any switching business,” the company noted.
The statement further noted that 3Line Limited took a decision to focus on its core area of strength, which using technology to deepen financial inclusion. They currently have a card scheme; Freedom card and a super-agent license which are fully functional.
According to the CEO, 3line is at the final stage of obtaining a PTSP license which will help deepen its super-agent business and other offerings. The strategy has proven laudable as the company has grown exponentially in the last 24 months.
It also assured its existing business partners that this does not in any way disrupt the services that are being offered.
According to the FGN Gazette No196 Vol 16, seven (7) payment service providers and a switching company were affected for failure to comply with regulatory obligations and ceasing to carry on with business for which they had been licensed for a continuous period of six months.
The affected payment service providers, whose licenses were revoked are; Easifuel Limited, Transaction Processing System (TPS), Grand Towers Limited, Paymaster Limited, E-Revenue Gateway Limited, Eartholeum Network Limited and Globasure Limited.
The payment service provider, whose switching license was revoked was 3Line card management Limited