By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
World of SoftwareWorld of SoftwareWorld of Software
  • News
  • Software
  • Mobile
  • Computing
  • Gaming
  • Videos
  • More
    • Gadget
    • Web Stories
    • Trending
    • Press Release
Search
  • Privacy
  • Terms
  • Advertise
  • Contact
Copyright © All Rights Reserved. World of Software.
Reading: CBN fines Paystack ₦250 Million over Zap operations
Share
Sign In
Notification Show More
Font ResizerAa
World of SoftwareWorld of Software
Font ResizerAa
  • Software
  • Mobile
  • Computing
  • Gadget
  • Gaming
  • Videos
Search
  • News
  • Software
  • Mobile
  • Computing
  • Gaming
  • Videos
  • More
    • Gadget
    • Web Stories
    • Trending
    • Press Release
Have an existing account? Sign In
Follow US
  • Privacy
  • Terms
  • Advertise
  • Contact
Copyright © All Rights Reserved. World of Software.
World of Software > Computing > CBN fines Paystack ₦250 Million over Zap operations
Computing

CBN fines Paystack ₦250 Million over Zap operations

News Room
Last updated: 2025/04/30 at 11:57 AM
News Room Published 30 April 2025
Share
SHARE

Nigeria’s Central Bank has fined Paystack, one of the country’s most prominent fintech companies, ₦250 million ($190,000) for allegedly operating its newly launched consumer product, Zap by Paystack, as a wallet in violation of its regulatory licence, according to one person with direct knowledge of the matter.

The apex bank claims that Zap—a peer-to-peer money transfer app launched in March—functions as a deposit-taking product, which is reserved for financial institutions with a microfinance or banking licence. Paystack holds a switching and processing licence, which permits it to route financial transactions between banks and other institutions, but not to hold customer funds. That limitation is central to the CBN’s sanction, the person said.

“Paystack is working closely with the regulator as they further review Zap, and out of respect for the process, we won’t be making any public comments at this time,” a Paystack spokesperson told .

In Nigeria’s tightly regulated financial services space, a wallet typically refers to a digital account that stores customer funds, allows payments, transfers, and often provides financial management tools. Operating a wallet without the right licence raises red flags with the CBN, which has grown increasingly vigilant about regulating the boundaries between licensed activities. learned Zap does not store user funds directly, but instead operates in partnership with Titan Trust Bank, which is licensed to hold deposits. 

The fine marks Paystack’s largest publicly known regulatory penalty since it received CBN approval in 2016. It also underscores the risks fintechs face as they expand beyond business-to-business payments into consumer-facing products. 

Zap’s launch was seen as a bold move by the Stripe-owned firm to compete in the fast-growing consumer payments market. However, it was quickly entangled in controversy: Nigerian crypto startup Zap Africa accused Paystack of trademark infringement, triggering a legal dispute that is still unresolved.

The CBN fine comes during heightened regulatory scrutiny for Nigerian fintechs. In the past year, several fintechs have faced increased oversight around customer onboarding and KYC compliance as regulators respond to growing concerns about fraud and financial stability in the financial sector. Two of the country’s most prominent unicorns, Moniepoint and OPay, were fined ₦1 billion each in the second quarter of 2024 over compliance issues.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Email Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Anthropic suggests tweaks to proposed U.S. AI chip export controls | News
Next Article Today’s deals: $99 AirPods 4, $350 off eufy X10 Pro Omni, $25 Fire TV Stick 4K, $250 KitchenAid mixer, more
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

248.1k Like
69.1k Follow
134k Pin
54.3k Follow

Latest News

nngy.nnunsnhyvnf
News
Body Was Found 20 Minutes from Where Brian Tarrence Vanished on Anniversary Trip, Says Private Investigator
Software
On Prime Day, grab Narwal’s smart home vacuums at their lowest ever prices – 9to5Mac
News
South African-born AI startup Cerebrium raises $8.5 million  
Computing

You Might also Like

Computing

South African-born AI startup Cerebrium raises $8.5 million  

6 Min Read
Computing

The HackerNoon Newsletter: Stress Testing the Ethereum LSD Market (7/8/2025) | HackerNoon

2 Min Read
Computing

NextChina: The future of humanoid robots with Unitree Robotics co-founder Chen Li · TechNode

20 Min Read
Computing

Sugar Daddy Season ($SUGAR) Launches Community Contest And Teases Bold Roadmap | HackerNoon

3 Min Read
//

World of Software is your one-stop website for the latest tech news and updates, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of use
  • Advertise
  • Contact

Topics

  • Computing
  • Software
  • Press Release
  • Trending

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

World of SoftwareWorld of Software
Follow US
Copyright © All Rights Reserved. World of Software.
Welcome Back!

Sign in to your account

Lost your password?