Chris Smith
Thursday, February 04, 2010
M-Payment: CBN limits telecoms companies’ participation
It equally restricted them from using their pre paid air time operations for payment under the mobile banking system.
Explaining
the rationale for the restriction, the Acting Director, Banking
Operation Department, CBN, Mr. Abayomi Atoloye, said during a forum
organised recently by the Financial Innovation and Access (EFInA), that
the move was to prevent monopoly of the operations by the three leading
GSM operators.
He said that if given the chance, there wae the
possibility that the larger network would dominate the mobile payment
system since they have access to the larger percentage of the
population as well as the infrastructure for the deployment of the new
payment system.
He explained that the limitations also prevent a
situation whereby a telecommunication network would limit the
deployment of the payment system to its subscribers alone, saying that
with the system in place, there will be inter network operations among
the telecommunications companies.
“For now, the
telecommunications companies cannot be allowed to be the lead initiator
for the mobile payment so as to give an equal playing filed to all the
operators in the country. There will not be a situation where a
telecommunication company will limit its service to only its
subscribers. There should be room for competition among the operators
to guarantee best service to the people,” he said.
He reiterated
that the apex bank has completed a draft bill on payment system to be
presented to the National Assembly for the deployment of the mobile
payment system in the country.
