Nigeria Central Bank grants Flutterwave switching, processing license

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The Central Bank of Nigeria (CBN) has accorded a Switching and Processing License to Flutterwave, an African payments technology business. This is widely regarded as the CBN’s most significant payment processing licence.

Flutterwave can provide customers with transaction switching and card processing services with this licence. Other benefits include non-bank acquisition, agency banking, and payment gateways.

  • The Central Bank of Nigeria (CBN) has accorded a Switching and Processing License to Flutterwave, an African payments technology business.
  • Flutterwave can provide customers with transaction switching and card processing services with this licence.
  • Flutterwave is permitted to facilitate transactions between banks, fintechs, and other financial institutions thanks to the Switching and Processing licence
  • Additionally, the company can handle card transactions, participate in agency banking, and provide payment services directly to customers

Flutterwave is permitted to facilitate transactions between banks, fintechs, and other financial institutions thanks to the Switching and Processing licence.

Additionally, the company can handle card transactions, participate in agency banking, and provide payment services directly to customers. Flutterwave was previously licenced to operate as an International Money Transfer Operator (IMTO) and a Payment Solution Service Provider (PSSP).

Olugbenga GB Agboola, CEO and founder, commented:

“For our clients, business associates, investors, and other stakeholders, this is major news. It is a significant turning point in our growth narrative.

It is per our objective to provide a top-notch and secure payment infrastructure for international merchants and payment service providers across the continent that we are creating a vibrant payments ecosystem in Nigeria, the continent’s largest economy.”

Oluwabankole Falade, the Chief Regulatory and Government Affairs Officer for Flutterwave, reacted to the news by saying,

“We’re overjoyed that this licence has been granted after meeting all the legal conditions.

The application procedure was extremely demanding and thoroughly analysed our company’s activities.

Due to the changeover, we now have extra obligations, and we’ll keep collaborating with regulators to ensure we live up to and beyond their expectations.”

What does the license mean for Flutterwave customers?

Faster Transactions

When you transmit money from Mr A to Mr B using Flutterwave, a series of events and partners assist Flutterwave in fulfilling and settling your transaction.
This licence provides greater value chain control, including settlement and transaction clearing capabilities. Payments are processed more quickly and with fewer delays.

Enhanced payment experience

With greater control over the payment value chain, the company can provide a better experience to its customers. The switching licence increases operational and customer service space while reducing various limits. This licence is a game changer for Flutterwave customers to receive high-quality service quickly.
enhanced security

The CBN’s most attractive payment licence is a switching and processing licence since it places the licensee at the heart of Nigeria’s financial ecosystem.

This entails stringent and stringent checks on every aspect of the company’s activities.

The High Court of Kenya freeze of More Flutterwave Money

Meanwhile, in Kenya, The Assets Recovery Agency (ARA) connected the money to card fraud and money laundering, prompting the High Court of Kenya to approve the freezing of an additional Sh400.6 million belonging to Nigerian fintech company Flutterwave.

Flutterwave has been engaged in a protracted legal battle with Kenyan authorities over money kept in various banks that is allegedly the result of illicit acquisition for most of this year. The company’s accounts have been stopped twice in less than six months due to fraud and money laundering allegations.

The court permitted the ARA to freeze the business’s funds in various banks in July. Guaranty Trust Bank (GTB) has KSh5.3 billion of the funds, Equity Bank holds Sh1.4 billion, and Ecobank holds further millions. This prior injunction also impacted other accounts that belonged to 56 different companies.

The Sh400.6 million that was frozen on Tuesday, August 30, 20,2022, is spread over 19 M-Pesa Paybill numbers, one account at Access Bank and UBA Bank.

The petition was submitted to the court. While ARA conducts additional inquiries, Grace Nzioka prohibited the corporation from withdrawing, transferring, or dealing with the money.

Through its governor, Patrick Njoroge, the Central Bank of Kenya (CBK) has also expressed concern about the firm. In July, the governor claimed that the business lacked the necessary authorisation to function as a Payment Service Provider (PSP) in the nation. Flutterwave later verified this claim and said it collaborates with authorised service providers to conduct business nationwide.

Flutterwave, founded in 2016, is one of Africa’s most successful fintech companies.
Apart from a statement that indicated the company makes its money via fees imposed on transactions, the company has never offered a thorough response to the allegations of engaging in fraud and money laundering.

Read: African tech startup industry resilient amidst the global economic downturn

Maingi Gichuku is passionate about helping African businesses grow by offering technology solutions. With a BSC in Zoology and biochemistry, Gichuku yearns for an Africa that can find solutions to its challenges. My drive is to see an economically dynamic Africa and embrace its populations by creating opportunities cutting across the social and economic strata.

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