A major payments company in Africa, Cellulant, has decided to leave the mobile money business in Nigeria. Instead, it will now concentrate on providing payment services to businesses.
This move comes after the Central Bank of Nigeria cancelled Cellulant’s licence for mobile money.
The Central Bank stated that it revoked Cellulant’s licence because the company chose to stop its operations under that licence. However, Cellulant clarified that the licence was not revoked due to any wrongdoing.
They explained that they had requested the cancellation back in December 2023, and it took some time for the process to be finalised by the Central Bank.
Cellulant had already been planning this shift since 2021. They obtained a new licence from the Central Bank called a Payment Solution Service Provider (PSSP) licence, which allows them to offer payment solutions to businesses. This new licence has been approved and is now in use.
In February 2023, Cellulant announced the renewal of its PSSP licence. With this licence, Cellulant can provide various payment solutions securely to many businesses across Nigeria, both online and offline.
Originally founded in 2002 as a music streaming platform, Cellulant has transformed into a fintech company. It now offers digital payment services and manages a network of retailers, merchants, banks, mobile operators, governments, and international partners.
Operating in 18 African countries, Cellulant claims to provide over 154 payment options in 34 countries. They connect 220 million users to a single network, making transactions easier.
In early 2023, Cellulant faced challenges in securing funding, leading to a restructuring process and layoffs aimed at improving efficiency. Then, in January 2024, the CEO, Akshay Grover, resigned to focus on personal matters.
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