The Central Bank of Nigeria (CBN) has approved the launch of an e-payment card specifically for the country’s unbanked sector.
The Freedom Card will enable the country’s unbanked to remit money via ATMs and point of sales, withdraw cash and make electronic transactions without having a bank account.
The Freedom Card, developed by 3Line Cash Management (3Line CM), is to be rolled out towards the end of February in Nigeria’s capital Lagos.
The general manager of 3Line CM said that the CBN has issued a probation period of two years to assess the success of the card.
According to local media reports, the Freedom Card could pave the way for a cashless economy and integration of Nigeria’s unbanked into the financial system.
The launch of an e-payment card without a bank account is the latest move in Nigeria’s banking sector to catch up with international banking standards.
In December, mobile money networks and technology group Monitise received a provisional licence by the Central Bank of Nigeria to introduce a mobile payments service in the country.