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Launching a payment gateway or POS business in 2026 requires a Payment Service Provider (PSP) license. Following the 2026 banking reforms, the CBN has raised the barrier to entry to ensure only technically sound firms operate. Startups must consult the 2026 fintech licensing guide before applying.
Licensing Tiers and Capital
In 2026, the ‘Switching and Processing’ license remains the most expensive (₦2 billion escrow), while a ‘Payment Solution Service Provider’ (PSSP) requires ₦100 million. You must also account for the 0.5% Cybersecurity Levy in your operational cost model.
2026 PSP Cost Breakdown:
- Application Fee: ₦1,000,000 (Non-refundable).
- Licensing Fee: ₦2,000,000 (Payable upon approval).
- Escrow Deposit: Varies by tier (₦50m to ₦2bn).
- Compliance Audit: Annual NDPC Data Audits are mandatory.
Step-by-Step: The PSP Application Process
- Incorporation: Ensure your CAC objects specifically mention ‘Payment Services’ and list all beneficial owners.
- Technical Demo: You must present your system architecture to the CBN’s IT department.
- Security Audit: Obtain a PCI-DSS and ISO 27001 certification.
- Final Approval: After the ‘Site Inspection,’ you receive an Approval-in-Principle (AIP).
Practical Example: The POS Aggregator
‘Easy-Pay Solutions’ applied for a PSSP license in early 2026. By having their startup compliance checklist ready and their capital escrowed, they received their AIP in 4 months, allowing them to legally deploy 5,000 POS terminals across Lagos.
External Resources
Apply via the CBN Fintech Portal. For security standards, visit PCI SSC.
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