African payments technology provider Flutterwave has received a switching and processing licence from the Central Bank of Nigeria (CBN) to offer electronic payments in the country.
The payments processing licence will enable Flutterwave to facilitate transactions between banks, fintech firms and other financial organisations.
It will also allow the company to process card payments as well as take part in agency banking and enable transactions without any intermediary.
With the CBN licence, Flutterwave can deliver non-bank acquiring, agency banking and payment gateway services to its customers, besides transaction switching and card processing services.
Before obtaining the licence, the company used its Payment Solution Service Provider (PSSP) and International Money Transfer Operator (IMTO) licences to operate in Nigeria.
Flutterwave CEO and founder Olugbenga GB Agboola 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.”
Granting of the new licence comes ahead of the firm’s plan to file for an initial public offering (IPO) on Nasdaq.
The company, which has a valuation of over $3bn, is facing various issues of financial irregularities such as money laundering in Kenya, reported Bloomberg. The firm is also allegedly involved in stock options-related issues and bullying of employees in Nigeria.
In May last year, Flutterwave teamed up with Ethiopian mobile digital wallet platform Amole to enable remittances in the country.