(Ecofin Agency) - The Central Bank of West African States (BCEAO) issued an instruction on January 31, 2024, outlining the procedures for providing payment services within the 8 West African countries that constitute the West African Monetary Union (WAMU).

This regulatory text officially grants banks, credit financial institutions, microfinance structures, and electronic money institutions the green light to offer payment services within the WAMU. However, they must first obtain approval as payment institutions from the BCEAO.

The approval process is contingent on demonstrating a fully paid-up minimum share capital, varying based on the types of payment services chosen by the applicant. This regulation, which has officially come into effect, was eagerly anticipated by various financial entities seeking to engage in payment service provision within the WAMU region. It aims to regulate the sector while enhancing consumer protection.

Payment service providers operating within the Union now have a 6-month window to comply with the provisions of this instruction and obtain their approval. Let’s note that the activities of payment service providers encompass cash deposits or withdrawals, account management operations, payment execution, fund transfers, issuance of payment instruments, and aggregation of accounts or account information.