Nigerian fintech Flutterwave recently received a switching and processing license from the Central Bank of Nigeria that allows it to provide “an improved experience for customers ” the company said. The new license is said to allow Flutterwave to “connect every single store of value in Nigeria to global commerce.”
The new license is said to be a “game changer”
Nigerian fintech unicorn Flutterwave has received a switching and processing license from the Central Bank of Nigeria (CBN), the payments company said in a statement released. The new license allows Flutterwave to “facilitate transactions between financial service providers, merchants, customers, and other stakeholders.”
Prior to obtaining the switching and processing license, Flutterwave operated in Nigeria under two licenses, Payment Service Solution Provider (PSSP) and International Money Transfer Operator (IMTO). The licenses allowed Flutterwave to operate legally in Nigeria, but according to the fintech company, their use meant that the payment company had to work with several intermediaries.
The involvement of these intermediaries means that processing and confirming transactions becomes more complicated. As explained in the settlement company’s latest blog post, the new license allows Flutterwave to gain greater control with fewer restrictions.
“The increased oversight of the payments value chain allows us to provide a better experience for our customers. The switching license allows us to operate with more leeway and serve our customers while removing various constraints. This license is a game changer for us and our customers, and we can’t wait for our customers to enjoy all that this license has to offer,” said the fintech company.
Flutterwave added that the license has enabled them to introduce new products and services.
The Central Bank of Nigeria’s “most desirable payment license”
Fintech’s blog post also explains why obtaining the Central Bank’s coveted license is an important milestone for Flutterwave. The blog post explains.
The Switching Processing License is the most desirable payment license for the CBN because it places licensees at the heart of the Nigerian financial ecosystem. This license is subject to rigorous and stringent checks on every part of our business operations. By obtaining this license, we have demonstrated the highest level of security standards and processes in Nigeria.
Flutterwave’s announcement that it had received yet another license from CBN came just weeks after the governor of the Central Bank of Kenya claimed that the fintech was operating illegally, as reported by Bitcoin.com News. Bank subsequently ordered Kenyan financial institutions to end their business engagement with Flutterwave.
Thus, by revealing that it had been granted another license to operate in Nigeria, Flutterwave, which does business in several African countries, appeared to indicate that it was only operating within the law.
Meanwhile, the fintech company’s blog post ends by stating that the new license also allows Flutterwave to “connect every single value store in Nigeria to global commerce.”
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