The Nigerian fintech Flutterwave has said the switching and processing license it recently received from the Central Bank of Nigeria allows it to “deliver an improved experience to our customers.” The new license is said to allow Flutterwave to “connect every single store of value in Nigeria to global commerce.”
New License Said to Be a ‘Game Changer’
According to a statement by payments company, Flutterwave (a Nigerian fintech startup) has received a switching license and processing licence from the Central Bank of Nigeria. The new license allows Flutterwave to “facilitate transactions between financial service providers, merchants, customers and other stakeholders.”
Flutterwave was operating in Nigeria before receiving the switching-and-processing license. Flutterwave had previously used two licenses, one for payments solutions provider (PSSP), and another for international money transfer operator. Flutterwave could legally operate in Nigeria with these licenses, however the fintech firm said they had to use them to make it work with many intermediaries.
These intermediaries made the process of processing and confirming transactions more complicated. As explained in the payments firm’s latest blog post, the new license gives Flutterwave greater control while reducing constraints.
“With more oversight of the payment value chain, we are able to deliver an improved experience to our customers. Switching license allows us to be more flexible and better serve our customers, while also removing some restrictions. This license is a game changer for us and our customers and we can’t wait for you to enjoy all that it offers,” the fintech firm said.
Flutterwave stated that this license allows the company to offer new services and products.
Nigerian Central Bank’s ‘Most Desirable Payment License’
The fintech’s blog post also explained why getting the central bank’s coveted license is an important milestone for Flutterwave. You can read the blog post:
A switching and processing license is CBN’s most desirable payment license because it embeds the licensee at the core of Nigeria’s financial ecosystem. This comes with rigorous and tough checks across every single part of the business’ operations. We have met the strictest security requirements and procedures in Nigeria by being awarded this license.
Just weeks ago, Flutterwave announced that it had received another CBN license. This announcement comes after the Governor of Kenya’s Central Bank alleged that fintech companies were operating illegally. According to Bitcoin.com News the Central Bank of Kenya ordered Kenyan banks and financial institutions not to do business with Flutterwave.
Flutterwave’s announcement that it had been issued a second license in Nigeria meant that Flutterwave was able to show that it operates only within the legal parameters.
Meanwhile, the fintech firm’s blog post ends by stating that the new license also allows Flutterwave “to connect every single store of value in Nigeria to global commerce.”
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