The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) declared last month that they will raise the fees for cash withdrawals. Before the planned rise, the fee for withdrawals under $5,000 was $100; with the increase, the fee would double.
The fees increase to $800 for 18,000 to 20,000. The rise also surpasses the 1% charge proposed by the Central Bank of Nigeria for PoS transactions.
Fintechs such as Moniepoint, OPay, and PalmPay are among the leading participants in the agency banking industry. On a teleconference with TechCabal, Edidiong Uwemakpan, Moniepoint's worldwide marketing leader, stated that the firm was not consulted before the announcement.
Still on that, an official OPay Facebook post, "any agent found overcharging will be blacklisted and may face legal consequences." PalmPay also told TechCabal that it was not informed of AMMBAN's decision.
The fintechs are all in agreement that the price hike violates the distinctive selling characteristics of PoS operators, which include the simplicity of withdrawals and low fees.
Using their widespread availability and big customer base, these fintechs are able to provide low transaction fees in order to attract more consumers and agents. However, a price increase might change everything.
Last Monday, the Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria prohibited PoS providers from raising PoS prices and threatened to fine them.
If the penalties are imposed, it may have an impact on Nigeria's financial inclusion efforts. The most successful attempt at banking the unbanked has been the agency banking concept.
Read more: https://www.investingport.com/niger...price-hike-as-fintechs-consider-legal-action/