In recent years, the financial sector has witnessed the introduction
and adoption of digital banking and other payment solutions other
than traditional banking. Fintech Startups have sprung up to
complement the existing participants by leveraging technology and
the internet to ease the conduct of financial transactions.
Consequently, traditional banks have transitioned in part to digital
banking where they render digital services using mobile
technologies such as mobile apps and websites. This has led to the
rapid growth of the electronic payment system in Nigeria.
Regulations must thus exist to administer the operation of this
composite system of payment. This paper critically examines the
available regulations and addresses the challenges in the regulatory
regime of Payment Systems in Nigeria, paying requisite attention to
Payment Service Providers.