How to Obtain a Payment Service License in Cameroon

As the digital economy continues to transform the financial sector in Cameroon and the CEMAC region, a surge of interest in providing payment services is evident. However, this opportunity comes with a stringent regulatory framework that demands meticulous attention.

At Fonyam and Partners Law Firm, we frequently counsel financial institutions and fintech entrepreneurs on this complex process. Securing a Payment Service Provider (PSP) license is not merely an administrative step; it is a foundational legal requirement that dictates your operational scope and credibility.

For those considering entry into this dynamic market, understanding the core requirements is essential:

1. The Exclusive Right to Operate: Payment services are not an open market. They can only be legally provided by authorized entities: credit institutions, microfinance institutions, or payment institutions specifically licensed under CEMAC/COBAC regulations. Operating without this authorization carries significant legal and financial risks.

2. Significant Capital Commitment: A substantial minimum share capital of 500 million CFA francs is mandated. This serves as a barrier to entry and ensures that licensed entities are financially robust.

3. Rigorous Application Scrutiny: The application process is exhaustive. Regulators require far more than just corporate documents. A successful submission must include a detailed business plan, comprehensive technical schematics of your operational and security systems, robust AML/CFT frameworks, and a clear strategy for service distribution.

4. Clear Operational Boundaries: It is equally critical to understand what a licensed Payment Institution is prohibited from doing, such as collecting deposits in the traditional banking sense or engaging in unregulated credit activities.

The consequences of non-compliance—including license withdrawal for inactivity or breaches of conditions—are severe and can be terminal for a business.

Navigating this process requires more than just filling out forms; it requires a strategic understanding of COBAC’s expectations and the ability to present a watertight, compliant application.

At Fonyam and Partners, our dedicated financial regulation team provides end-to-end guidance, from structuring your entity and preparing the licensing dossier to ensuring ongoing compliance with CEMAC regulations.

If you are exploring the potential of Cameroon’s payment services market, we encourage you to proceed with expert legal counsel.

Banyong Fonyam Jonie Jr.
Founding Partner | Fonyam & Partners Law Firm
📞 +237 675 859 695 | 📩 [fonyamlaw92@gmail.com]
“Legal precision unlocks investment potential.”