SmartCash Payment Service Bank (PSB), a subsidiary of Airtel Nigeria, has partnered with Leadway Assurance to offer mobile-based car insurance services. This marks a strategic shift for SmartCash PSB as it seeks new ways to grow within the constraints of its payment service banking licence.
The new partnership enables SmartCash users to seamlessly access Leadway’s Third-Party and AutoBase Comprehensive car insurance directly via the SmartCash app or USSD code *939#, with premiums starting from as low as ₦15,000. The process—from plan selection to payment and receipt of digital policy documents—can be completed in under three minutes, eliminating the need for paperwork or in-person visits. While this marks a significant step in improving convenience and access, it also highlights the underlying constraints of Nigeria’s regulatory environment for Payment Service Banks (PSBs).
Under the Central Bank of Nigeria (CBN) guidelines, PSBs are prohibited from offering credit, foreign exchange, or underwriting insurance products. This regulatory limitation prevents SmartCash from directly selling or managing insurance services, effectively curbing its ability to evolve into a full-scale digital finance platform. Instead, the bank must depend on partnerships with licensed third-party providers like Leadway Assurance to expand its service offerings—an approach that allows value-added services while staying within compliance boundaries.
This stands in stark contrast to Airtel Africa’s operations in other African markets with more flexible regulatory frameworks. In countries such as Kenya, Uganda, and Zambia, Airtel has successfully rolled out bundled microinsurance products through its mobile money platform. In Kenya, for example, Airtel Money users can access life and hospital cash insurance via a partnership with Britam. Similar models in Uganda and Zambia enable customers to pay insurance premiums directly from their mobile wallets—an integrated approach that remains out of reach in Nigeria due to PSB licensing constraints.
For Airtel Nigeria, the partnership with Leadway represents both an opportunity and a necessity as it works to strengthen SmartCash’s position in Nigeria’s competitive fintech space. Mobile money adoption in Nigeria continues to lag behind frontrunners like Kenya and Ghana, and despite Airtel’s wide telecom footprint, it has struggled to convert users into active participants in its financial ecosystem. By embedding services like insurance, SmartCash hopes to drive user engagement and build relevance, but without deeper regulatory reforms, its growth potential will remain limited compared to its operations in more permissive markets.
“At Smartcash, our goal has always been to bring inclusive financial solutions closer to everyday Nigerians,” said Tunde Kuponiyi, Chief Executive Officer, Smartcash PSB. “By partnering with Leadway Assurance, we’re making it easier for motorists to insure their vehicles without stress or delays. It’s insurance that moves at your speed.”
The significance of this development goes beyond insurance. It reflects the evolving landscape of Nigeria’s digital finance sector, where telcos, banks, and fintechs are all vying to offer bundled services that meet users where they are, often on low-end phones and patchy networks.
“This collaboration with SmartCash enables us to deliver real-time protection to more Nigerians via a trusted, everyday platform. It marks a bold step in transforming how insurance is accessed and experienced across the country,” said Kike Fischer, Director, Sales, Retail and Partnership, Leadway Assurance.
As PSBs continue to navigate regulatory limits, partnerships like this could define how far they go in delivering real impact. For SmartCash, tapping into insurance may not just be a value-added service — it could be the key to unlocking deeper financial inclusion.
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