The Nigerian fintech company, Flutterwave, has been granted a switching and processing license from the Central Bank of Nigeria (CBN). The license is to permit them to facilitate transactions between financial service providers, merchants, customers, and other stakeholders while eliminating intermediaries (middlemen).
The license permits it to carry out services and transactions such as switching, card processing, non-bank acquiring, agency banking, and payment gateway services. Despite facing licensing issues in Kenya, the Nigerian central bank has issued Flutterwave dubbed, the most valuable payments processing license, to strengthen its hold on the Nigerian financial space.
Purpose of the License
In the past, Flutterwave was only licensed to operate as a payment solution service provider (PSSP) and International money transfer operator (IMTO) in Nigeria. The PSSP license allows users to pay merchants while the IMTO license allows it to make cross-border payments. However, Flutterwave signed a partnership deal with different partners to make these transactions happen. Presently, it aims to process transactions directly.
In a statement, Flutterwave says the license will fasten the processes of transactions, launch new and improve existing products, and improve the payment experience. The switching and processing license will also provide a high rate of security that will add more credibility to the company in the eyes of customers, investors, and regulators in other countries.
Furthermore, Flutterwave, from its company’s blog says “ 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’s operations. By being granted this license, we have demonstrated the highest level of security standards and processes in Nigeria”.
Chief Regulatory and Government Affairs Officer Speaks
From the office of the chief regulatory and government affairs officer, Oluwabankole Falade, he explained how the company got its license. He said “we are thrilled to have been issued this license after fulfilling all of the regulatory requirements. The application process was very rigorous and included a detailed review of our operations as a business”.
On the 30th of August 2022, the Lagos-based and San Francisco-registered company prepared an initial public offer on the Nasdaq stock exchange, the second largest stock exchange in the world. The company plans to hire four new executives from American Express. This is another move to strengthen its corporate governance.
Presently, Flutterwave’s net worth is more than $3 billion and thriving to achieve greater success on the continent.