Foremost fintech unicorn, Flutterwave, announced that it has secured a switching and processing license by the Central Bank in Nigeria. A switching and processing license allows a company facilitate transactions between financial service providers, merchants, customers and other stakeholders.
According to the company in a blog post,
“Previously, we operated in Nigeria with our Payments Services Solutions Provider (PSSP) and International Money Transfer Operator (IMTO) licenses. So, whenever you pay a merchant on Flutterwave, you’re leveraging our PSSP license. Whenever you send money from the UK to Nigeria, you’re leveraging our IMTO license.”
“But, because of the complex nature of the payments network, we work with other partners behind the scenes to process and settle these transactions in real time. Now, with our new license, we process transactions directly and much more.”
The company says the new license will allow for faster transactions, improved payments experience, more products and improved security.
This is pleasant news for the company and rather welcome when compared to the regulatory and financial issues it is facing in Kenya. Flutterwave’s accounts were frozen and accused of money laundering charges. The Central Bank of Kenya recently ordered all financial institutions in Kenya to stop dealing with the company because “they are operating without licensing and authorisation by CBK.”
Despite these allegations, the company announced that it is preparing for an initial public offering (IPO) on the Nasdaq stock exchange.
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