Earlier in September, Flutterwave announced that it secured a switching and processing licence from the Central Bank of Nigeria (CBN), one of the most valuable licences in the payment industry.
Prior to the licence, Flutterwave operated in Nigeria with the Payments Services Solutions Provider (PSSP) and the International Money Transfer Operator (IMTO).
The PSSP enables the company to ensure merchants get paid by partnering with acquiring banks and their payment processes. A PSSP also allows a business to accept various payment types from customers and it is done by sending transaction data via the payment gateway to the payment processor used by the bank. This is why Flutterwave set up its Store where merchants could display their products as well as get paid.
The IMTO licence allows the firm to remit funds to persons resident in Nigeria. Flutterwave is also able to carry out cross-border transfer services for personal purposes such as money transfers for foreign tourists visiting Nigeria. This licence led to the launch of Barter. Due to the complex nature of the payments network, Flutterwave says it works with other partners behind the scenes to process and settle these transactions in real time.
The switching and processing licence takes Flutterwave’s service to a different level. First, the licence enables the company to facilitate transactions between financial service providers, merchants, customers, and stakeholders.
“We often say ‘payments is partnership’. When you send money from Mr A to Mr B via Flutterwave, there’s a chain of events and partners that help Flutterwave fulfill and settle your transaction. While we will be working with these partners, this license offers us more control of our value chain, as a switch we can now maintain direct connections to partners in the payment ecosystem . Payments are faster and with less hiccups,” the company noted.
With more oversight of the payment value chain, Flutterwave is also able to deliver an improved experience to customers. The switching licence allows the company to operate and serve customers while removing various constraints.
Read also: Global payments fintech Ebanx eyes Nigeria, South Africa, Kenya for expansion
Flutterwave said it plans to launch more products, improve existing solutions and support customers in more innovative ways. The company has already been building features and products in anticipation of the switching and processing licence and can now deploy following the approval.
Recently, Flutterwave announced it provides Google Pay as a payment method for merchants and customers in Africa. The integration allows users of Google Pay in supported countries across the world to pay businesses on Flutterwave across Africa.
The company currently provides payment processing in 150 currencies and multiple payment modes including local and international cards, mobile wallets, and bank transfers. It also has an infrastructure reach in over 34 countries, including Nigeria, South Africa, UK, Tanzania, Rwanda.
The switching and processing licence which has a N2 billion capital requirement attached to it is seen as CBN’s most desirable payment licence because it comes with rigorous and tough checks across every single part of the business operations.
‘By virtue of being granted this licence, we have demonstrated the highest level of security standards and processes in Nigeria. We will continue to offer security measures, standards, and processes that match and even exceed global, industry, and national standards,” the company noted.