Nigerian fintech Flutterwave says it recently received a switching and processing license from the Central Bank of Nigeria to “provide an enhanced experience to our customers”. The new license is said to enable Flutterwave to “connect every store of value in Nigeria to global commerce”.
A new license is said to be a ‘game changer’.
Nigerian fintech unicorn Flutterwave has been granted a clearing and processing license by the Central Bank of Nigeria (CBN), the payments firm has announced. The new license allows Flutterwave to “facilitate transactions between financial service providers, merchants, customers and other stakeholders.”
Before receiving the switching and processing license, Flutterwave operated in Nigeria using two licenses: Payment Services Provider (PSSP) and International Money Transfer Operator (IMTO). While the license allows FlutterWave to operate legally in Nigeria, their use as a fintech company meant the payments firm had to work with several intermediaries.
The involvement of such intermediaries meant that the processing and verification of transactions was difficult. As explained in the payments firm’s recent blog post, the new license gives Flutterwave more control and less restrictions.
“With more control over the payments value chain, we are able to deliver an improved experience to our customers. The switch license gives us more room to operate while removing various constraints to operate and serve our customers. This license is a game changer for us and our customers and we can’t wait for them to enjoy all it has to offer,” the fintech company said.
Flutterwave added that the license will now allow the company to introduce new products and services.
Central Bank of Nigeria ‘Most Wanted Payment License’
The fintech blog post also explained why obtaining the required central bank approval is an important milestone for Flutterwave. The blog post explained:
The clearing and processing license is the CBN’s most sought-after payments license because it embeds the licensee in the core of Nigeria’s financial ecosystem. This comes with stricter and stricter checks on all parts of the business. By obtaining this license we have demonstrated the highest security standards and procedures in Nigeria.
Flutterwave’s announcement of another license from the CBN comes a few weeks after Kenya’s central bank governor accused the fintech of operating illegally. As reported by Bitcoin.com news, the Central Bank of Kenya subsequently ordered Kenyan financial institutions to cease doing business with Flutterwave.
Therefore, it seems that Flutterwave, which operates in various African countries, operates only within the limits of the law, stating that it has been given another license in Nigeria.
Meanwhile, the fintech company’s blog post concludes by saying that the new license will enable Flutterwave to “connect every store of value in Nigeria to global commerce”.
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