Licensing & Regulatory Strategy
How AuraTap operates legally across all markets and phases
Phase 1 Operating Model — Sponsor Licence
In Phase 1, AuraTap operates under a sponsor-bank / principal licence model. AuraTap is a registered technology and payment aggregation layer that processes transactions under the PSP licence of an authorised partner institution in each country. This is the same model used by Flutterwave, Paystack, and MoMo agents at launch. It allows AuraTap to go live immediately while its own licence applications are processed.
We provide
- Technology infrastructure
- Routing engine
- Wallet UI
- Fraud detection
Partner provides
- Regulatory licence
- Settlement account
- Compliance reporting
- KYC sign-off
Revenue split
- Defined in partner agreement
- Transparent fee structure
- Volume-based tiers
Migration
- AuraTap own licence when volume justifies
- Seamless transition
- No customer disruption
Licence Roadmap
| Country | Phase | Licence Type | Partner Model | Status | Target Date |
|---|---|---|---|---|---|
| Ghana | 1 | PSP Licence (BoG) | Sponsor bank first | In Progress | Q2 2025 |
| Nigeria | 1 | Payment Solution Services (CBN) | PSSP via partner | Planned | Q3 2025 |
| South Africa | 1 | FSCA Registration + SARB | Partner PSP first | Planned | Q4 2025 |
| Uganda | 1 | EMI Lite (BOU) | Sponsor model | Planned | Q1 2026 |
| Morocco | 3 | Payment Institution (BAM) | Partner first | Future | 2027 |
| EU Corridor | 5 | EMI Licence (PSD2) | Own application | Future | 2028 |
| GCC (UAE) | 5 | DIFC / ADGM Fintech Licence | Partner first | Future | 2028 |
| Asia | 5 | Country-specific | Partner first | Future | 2029 |
How the Partner Licence Model Works
What AuraTap Does
- Technology infrastructure and platform development
- Customer onboarding and KYC data collection
- Transaction routing and processing
- Fraud detection and prevention systems
- Wallet UI and customer experience
- API integration and developer tools
What the Partner Institution Does
- Holds regulatory licence (PSP/EMI)
- Holds customer funds in safeguarding accounts
- Regulatory reporting to central bank
- Final KYC sign-off and approval
- Settlement account management
- Compliance audit and oversight
This model is standard in African fintech. It reduces capital requirements and speeds time to market. AuraTap's own licence applications run in parallel.
Credit Licence Strategy — Phase 3
To issue merchant working capital and consumer credit, AuraTap will require either a microfinance licence, a credit intermediary registration, or a partnership with a licensed credit institution in each market.
| Market | Credit Licence Type | Partner vs Own | Timeline |
|---|---|---|---|
| Ghana | Microfinance Licence (BoG) | Partner first | Year 3 |
| Nigeria | MFB or Lending App (FCCPC) | Own application | Year 3 |
| South Africa | NCR Registration | Own | Year 3 |
| Uganda | MDI Licence (BOU) | Partner first | Year 4 |
White-Label Licensing Constraints
When AuraTap white-labels its infrastructure to a telco or bank partner, that partner must hold the relevant licence in their jurisdiction. AuraTap provides technology only. The partner is responsible for their own regulatory compliance. AuraTap's white-label agreement includes mandatory compliance clauses.
Key Constraints:
Partner must hold valid PSP or EMI licence
Partner responsible for their own KYC/AML
AuraTap provides compliance tooling and audit logs
Revenue share agreement includes regulatory cost allocation
AuraTap retains right to terminate if partner breaches compliance