RightCard Payment Services Limited, a subsidiary of Lemonade Technology Inc., has joined the likes of Flutterwave, Interswitch, PayPal, and Opay to operate as an International Money Transfer Operator (IMTO) in Nigeria. The company announced recently that it has received a license from the country’s Central Bank, therefore enabling it to function as an IMTO entity within the nation.
This achievement underscores Lemonade Technology Inc.’s (LemFi) commitment to providing secure and efficient services while adhering to the regulatory framework set by the Central Bank of Nigeria.
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.
It’s worth noting that LemFi is already 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 accordance 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 permitted to accept deposits or provide money lending services, as these require separate licensing. Additionally, they are not allowed to purchase foreign currency on the domestic foreign exchange market for settlement purposes.
Dolapo Omotoso, LemFi’s Country Manager, expressed delight at the license acquisition, emphasizing that it demonstrates the company’s dedication to compliance and commitment to serving the Nigerian market. This milestone reinforces their position as a leading international money transfer operator, striving to empower individuals through seamless, secure, and affordable money transfer services.
Fintech’s incredible advancement has made quick money transfers around the world almost casual. International remittances and transfers have significantly progressed from the days of lengthy due diligence inspections and slow transactions that could take up to a week. As RightCard Payment Services begins its journey as a licensed IMTO provider in Nigeria, it is poised to contribute to the evolution of the fintech landscape, making global money transfers even more efficient and accessible.
