Confirming this development in separate statements seen by Unmask NG, MTN and Airtel disclosed that with CBN’s Approval in Principle, they can now operate payment services in the country.

While MTN said it would run a payment service under Momo Payment Service Bank Limited, Airtel made it known that it would only operate a payment service under SMARTCASH Payment Service Bank Limited.

Segun Ogunsanya, the Chief Executive Officer (CEO), Airtel Africa, stated: “We will not work closely with the CBN to meet all its conditions to receive the operating licence and commence operations.

“The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services.”

On its part, MTN stated: “This is the first step in the process towards final approval, subject to the fulfillment of certain conditions as stipulated by the CBN.

“The decision to issue a final approval is firmly within the regulatory purview of the CBN and we respect their right and judgment in that regard.”

What you should know

MTN and Airtel are not the first telcos to be licenced for banking services.

It would be recalled that two years ago, the CBN granted Globacom and 9Mobile PSB licences through their subsidiaries, Money Master PSB and 9 PSB, respectively.

According to the central bank, PSBs are to leverage mobile and digital channels in order to enhance financial inclusion and stimulate economic activities in rural areas through the provision of financial services.

The post MTN, Airtel Finally Secure CBN’s Nod To Become FinTech Firms appeared first on Business News in Nigeria.

Recall that in September,MTN’s grip in the telecommunications market slacked as its market share dropped from 40.90% to 40.30%.

While MTN was losing subscribers, its closest rival, Airtel, continue to grow its subscriber base by over 483,000 subscribers. This means that Airtel was gaining more than the number MTN lost within the same period.

Airtel Network rose from 54.7 million in August to 55.2 million in September, to close the gap between Airtel and MTN.

According to Nigerian Communications Commission (NCC), Glo Network recorded an increase in its subscriber base, which rose from 52,9 million to 54.2 million in September, Glo Network recorded in August; reflecting an addition of 1.3 million, meaning Glo Network recorded the highest voice subscriber growth.

Surprisingly, 9mobile Network which has been struggling to gain subscribers five months ago, also recorded voice subscriber growth, after its subscriber base rose from the 12.3 million to 12.7 million in September, rising by 351,600 gain.

Meanwhile, the loss of subscriber which was recorded in MTN’s voice (telephone) subscriber base, fell by 448,000 with 82.6 million subscribers, this is below the initial 83.08m it recorded in August.

What this means

Indeed, the past few month hasn’t been a good one for MTN, as the company made efforts to win its competitors Airtel and Glo Network in the data war.

While MTN couldn’t keep its subscriber base from reducing, its rivals’ Airtel, Globacom, and 9mobile have gained more subscribers within the same month.

In this torrid period, note that the Subscribers dumping MTN may cost the company its market share within the Nigerian market.

The post MTN Loses Subscribers To Rivals, Here’s Why appeared first on Business News in Nigeria.