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’
The Nigerian fintech unicorn, Flutterwave, has been granted a switching and processing license by the Central Bank of Nigeria (CBN), a statement released by the payments firm has said. 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: payments services solutions provider (PSSP) and international money transfer operator (IMTO). While the licenses made it possible for Flutterwave to operate in Nigeria legally, according to the fintech firm their use meant the payments firm had to work with several intermediaries.
The involvement of such intermediaries, in turn, meant the processing and confirmation of transactions was cumbersome. 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. The switching license gives us more room to operate 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 you to enjoy all that it offers,” the fintech firm said.
Flutterwave added that the license now makes it possible for the firm to introduce new products and services.
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. The blog post explained:
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. By virtue of being granted this license, we have demonstrated the highest level of security standards and processes in Nigeria.
The announcement by Flutterwave that it has received yet another license from the CBN comes just a few weeks after the governor of the Kenyan central bank alleged that the fintech was operating illegally. As reported by Bitcoin.com News, the Central Bank of Kenya subsequently ordered Kenyan financial institutions to end business engagements with Flutterwave.
Therefore, by revealing that it has been granted another license to operate in Nigeria, Flutterwave, which operates in several African countries, appeared to signal that it only operates within the confines of the law.
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.”