The central bank of Kenya has issued a license to Virtual Pay International Limited to carry out its operation as a Payment Service Provider (PSP) in the country.
Unlike Cellulant which started its operation in 2003, and got its license earlier in February 2022, this act serves as a milestone for Virtual Pay to seal its ability to carry out online payment services in accordance with Kenya’s National Payment System (NPS) Act, 2011.
Consequences of Lack of License
In a statement from the governor of the Central Bank of Kenya, Patrick Njoroge, Flutterwave and Chipper were ordered to cease their operation. Furthermore, he said “the two firms were not licensed to operate as remittance providers or payment service providers and should therefore cease operations. They were thus given a strict 7-week ultimatum, which expires in September 2022”.
In response to this, Flutterwave stands its ground in gaining access to Kenya through its partnership with licensed banks and mobile operators. It maintained that its operation has always engaged the CBI in line with the requirement for the license to be met and the license issued. However, the Nigerian fintech company has been operating in Kenya for over 6 years without license.
Reason for the Need of a License
The license permits Virtual Pay to initiate payment gateway to merchants’ home and abroad. The company aims to leave its footmark in the economy and financial growth of Kenya. Considering that Virtual Pay is a Kenyan-owned fintech, Kenyan government has initiated a plan to issue licenses to every Kenyan Originated businesses.
The financial technology company has the intention to partner with every financial and non bank financial institution, major card schemes and market player to operate on a scale that will be beneficial to all stakeholders.
CEO Virtual Pay Speaks
The Virtual Pay Group CEO, David Morema, in his statement says “We are humbled by the approval from the Central Bank, to offer our services to the Citizens of Kenya, and the global economy at large. We understand the importance of this license, and the regulatory and compliance expectations from the CBK. We shall continue to steadfastly adhere to all regulations and compliance directives, while offering innovative, exciting and state-of-the-art services to all our partners”
Virtual Pay Spreads it Tentacles
Furthermore, he says the company has established itself in African countries like Tanzania, Mauritius and the UAE where it will be able to offer its services across a ridge of industries.
To offer great customer services, it has partnered with various business merchants to ensure a smooth and easy payment gateway for its international clients.
