AGS NEWS – Financial technology companies have begun applying levies on electronic transfers into personal and business accounts, in line with Federal Inland Revenue Service (FIRS) regulations.

OPay, a leading fintech, informed its customers on Saturday that, starting September 9, 2024, a N50 fee will be charged on electronic transfers of N10,000 or more.

The company clarified that this charge, mandated by the government, is not a source of revenue for OPay. Other fintech platforms like Moniepoint and PalmPay have also started implementing these fees.

ALSO READ: 12 finalists emerge in Ecobank fintech challenge

This levy follows the Federal Government’s initiative to generate revenue from electronic transactions, introduced by the Finance Act, 2020.

Under the Electronic Money Transfer Levy Regulations, a one-time fee of N50 is imposed on recipients of transfers of N10,000 or more. Banks and financial institutions are required to collect and remit the levy to the FIRS.

Failure to collect or remit the levy could result in penalties for banks, including fines of up to 150% of the uncollected amount.