BrandArena: RightCard Payment Services Obtains IMTO License in Nigeria

Friday 21 July 2023

RightCard Payment Services Obtains IMTO License in Nigeria

RightCard Payment Services Limited, a Lemonade Technology Inc. company, has joined Flutterwave, Interswitch, PayPal, and Opay as an International Money Transfer Operator (IMTO) in Nigeria. The company just stated that it has secured a licence from the country's Central Bank, allowing it to operate as an IMTO entity within the country.

This feat demonstrates Lemonade Technology Inc.'s (LemFi) dedication to providing secure and efficient services while following the Central Bank of Nigeria's regulatory framework.

Money transfer operators, commonly known as MTOs, are financial entities engaged in cross-border fund transfers either through their internal systems or by accessing cross-border banking networks. MTOs offer a range of services, including cash transfers, mobile transfers, and online transfers, often charging fees for their services. These platforms provide a fast and convenient way to transfer money, especially for individuals without access to a bank account.

With its newly acquired IMTO license in Nigeria, RightCard Payment Services can now directly partner with banks, eliminating intermediaries, and providing customers with a superior money transfer experience in Nigeria.

LemFi currently has a licensed Electronic Money Institution with the Financial Conduct Authority in the United Kingdom. Expanding on its global success and expertise, RightCard is bringing its innovative digital money transfer services to customers in various markets through the LemFi app.

In line with the 2014 Guidelines for the Operation of International Money Transfer Services in Nigeria, companies seeking to offer IMTO services in the country must obtain a license from the Central Bank of Nigeria (CBN). IMTOs are authorised to receive funds for the purpose of sending them to individuals residing in Nigeria or other nations. They may also provide cross-border transfer services for private needs, such as family support and transfers for foreign visitors to Nigeria.

However, IMTOs are not allowed to accept deposits or perform money lending services because these require additional licencing. Furthermore, they are not permitted to purchase foreign currency for settlement purposes on the domestic foreign exchange market.

LemFi's Country Manager, Dolapo Omotoso, expressed joy at the licence acquisition, emphasising that it illustrates the company's commitment to compliance and to serve the Nigerian market. This achievement cements their position as a top international money transfer operator, trying to empower individuals through seamless, secure, and cost-effective money transfer services.

The tremendous growth of fintech has made rapid money transfers around the world virtually routine. International remittances and transfers have come a long way since the days of extensive due diligence checks and transactions that may take up to a week. RightCard Payment Services is set to contribute to the expansion of the fintech scene as a licenced IMTO provider in Nigeria, making worldwide money transfers even more efficient and accessible.

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