Flutterwave Is Granted a Switching And Processing License From CBN
Flutterwave is Granted a Switching And Processing License From CBN: Flutterwave can now conduct financial transactions directly after getting a switching and processing license from the Central Bank of Nigeria.
Previously, the company had worked with partners to process payments made by its customers, but with this license now has increased control over its payment processes.
Flutterwave used its Payment Solutions Service Provider (PSSP) and International Money Transfer Operator (IMTO) licenses before CBN granted them the switching and processing license.
This development means that the startup joins Interswitch, TeamApt, and Appzone as some of the companies with the license in Nigeria.
To acquire this license, a company must put up ₦2 billion of shareholder’s funds unimpaired by losses and a further ₦2 billion in escrow that is refundable. Where applicable, the financial statement for the preceding three years is also submitted along with an application.
Olugbenga Agboola, Flutterwave CEO, commenting on the license, said, “This is big news for our customers, partners, investors, and other stakeholders. It is an important milestone in our growth story. 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.”
Oluwabankole Falade, the startup’s Chief Regulatory and Government Affairs Officer, also disclosed that the application process was rigorous while pointing out that it placed more responsibilities on the company.
“We’re 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. As a switch, we have more responsibilities and will continue to work with regulators to ensure we meet and exceed their expectations.”