The Central Bank of Nigeria (CBN) has given Flutterwave, a payment service company in Nigeria, a Switching and Processing License. It will be able to enable transactions.
Although the PSSP license lets customers pay merchants and the IMTO license lets them pay for power across borders, Flutterwave still had to deal with several partners to make these things happen. That is something that it plans to modify so that it can, instead, execute transactions directly.
What will the new development bring for the company?
Flutterwave claims that it will be able to process transactions more quickly, develop new products, improve the ones it already has, and improve the payment experience thanks to this licence.
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Customers, investors, and authorities in other countries will gain confidence in the company thanks to the enhanced security measures made possible by the Switching and Processing Licence.
“A switching and processing licence is CBN’s most desirable payment licence because it embeds the licensee at the core of Nigeria’s financial ecosystem,” said the Central Bank of Nigeria (CBN). This necessitates comprehensive and stringent checks covering every aspect of the business’s operations. A section of the company’s blog about the news says, “By getting this license, we have shown that we have the highest level of security standards and processes in Nigeria.”
Oluwabankole Falade, the company’s chief regulatory and government affairs officer, was also aware of the complicated process required to obtain the licence, as mentioned earlier. “We couldn’t be more ecstatic to have been granted this licence after successfully meeting all regulatory standards.” The application process was highly rigorous and included a detailed review of our operations as a business,” he stated.
The news broke on Tuesday that the company, with its headquarters in Lagos and its registration in San Francisco, is getting ready to make its initial public offering (IPO) on the Nasdaq stock exchange, which is the second largest stock exchange in the world. This occurred even though the company still faces multiple allegations of financial impropriety. It is generally agreed that the corporation improved its corporate governance by hiring four new executives from American Express in June. These executives came from the company’s rival, American Express.
Flutterwave, which has a market capitalization of over $3 billion, is aiming for even greater success on the continent. Oneal Bhambani, the company’s chief financial officer, was hired away from American Express. He said the company plans to use the money from the stock exchange listing to grow in its current markets and enter new ones in Africa.
Read: Flutterwave obtains switching and processing licenses in Nigeria
Olugbenga Agboola, the creator of the company and the current CEO, shared his sentiments. “Building a thriving payments ecosystem in Nigeria, Africa’s largest economy, is in line with our goal of developing a world-class and secure payment infrastructure for global merchants and payment service providers across the continent,” he said. “This fits with our goal of building a world-class, secure payment infrastructure for global merchants and payment service providers across the continent.”
About Flutterwave
Flutterwave is a payments technology company with offices all over the world. It is currently building digital payments infrastructure, focusing on the African market. The company facilitates digital transactions within Africa, African countries, and other regions.