Local entity to offer money mobile service |23 February 2023

Governor Abel flanked by Ms Lucas and Mr Benoiton during the press conference yesterday (Photo: Patrick Joubert)

The Central Bank of Seychelles (CBS) has licensed a new non-banking service provider, the Nebula Fintech Limited, to offer payment services through Electronic money (e-money), a digital alternative to cash.

The local payment service provider was issued with the Payment Service Provider License early this month which would allow users to make cashless payments with money stored on their mobile.

The license was granted under the National Payment System act 2014 which grants the CBS the powers to provide for the regulation and oversight of the national payment system in place and for matters connected therewith and incidental thereto.

The application for the license was submitted in September 2022.

Nebula Fintech Limited is the second local entity to offer e-money service for its users to load cash on their mobile devices, shop at a variety of outlets including carry out mobile banking, after Airtel Seychelles launched ‘Airtel money’ in 2015.

It has partnered with Nouvobanq and Cable and Wireless Seychelles (CWS) to offer the service.

During a press conference held yesterday at CBS regarding the issuing of the license, Governor Caroline Abel said it reflects the modernisation journey that the bank is promoting in enlarging the kind of services, particularly on the payment landscape to non-bank players, to improve the cost element with regard to payments becoming more affordable for doing business and for the families to become more efficient.

Also present at the press conference were Cyril Benoiton, the senior financial surveillance analyst and Brigitte Lucas, the financial inclusion analyst.

Governor Abel explained that while the world is turning digital, where in some countries payments for services are purely done electronically instead of using cash, it is in this direction that our country is heading.

She added that we, as a tourist destination, have to prepare ourselves to face the modern financial transaction realities especially now that tourists are using their phones and other electronic means, rather than cash, as means of payment for services and for which we have to cater for.

She noted that we have to take into account of whatever is happening in the world as changes in financial transaction will also reach our shores.  

“The modernisation journey that we have started is that we want to have an eco system that uses less cash. We know that in our country we have a demography that we have to make sure that all members of the public can participate,” said Governor Abel, who noted that CBS, along with its partners, will be conducting vigorous education programmes to explain to the public the use and benefits of the various financial electronic platforms available.

Speaking on the Payment Service Provider License awarded to Nebula Fintech Limited, Mr Benoiton said that the company was assessed through various set terms and conditions and was found to be compliant.

He also stated that under the terms and conditions the entity has six months to operate the mobile money service from the time the license was issued with the license fee payable before the start of the business.

“We had to make sure that its activity was one that will be variable and that it was not also going to cause any disruption in our financial system,” said Mr Benoiton, who noted that it was also vetted in regards to money laundering.  

Mr Benoiton said that Nebula Fintech Limited also requested to perform some additional fintech financial technologies and given they are not in line with the law, CBS will be working on a legal framework to cover those additional payments activities before they will be allowed to operate.  

“Nebula Fintech Limited will have to abide by the various terms and conditions and in the event it breaches those terms and conditions, CBS has the power under the law to revoke its license and to stop its operation,” said Mr Benoiton.

He however noted that consultations will be held first before revoking the license.

The modernisation of the payment system by CBS started after the country embarked on the macro-economic reform in 2008 which created the platform.

Patrick Joubert