In the first eleven months of the year, Nigerians performed transactions worth N7.56 trillion on Point of Sale (PoS) terminals, according to the data released by the Nigeria Inter-Bank Settlement System (NIBSS).
In the period under review, the total number of PoS terminals deployed by both merchants and individuals rose by 500,000 to 1.6 million when compared to 915,519 deployed in 2021.
A critical analysis of the report revealed that the value of transactions performed via PoS in the month of November 2022 stood at N759.2 billion, the highest monthly transaction ever recorded.
The growth of PoS transactions in Nigeria is being driven by many factors, part of which include rapid adoption by merchants for receiving payments. Its growth is also partly connected to the growing number of youths launching various PoS businesses.
Similarly, the transition from the old naira notes to the new ones, which have started entering circulation, is expected to spur the use of electronic banking channels ahead of the expiration of the old notes by January 31, 2023.
While the withdrawal limit on both individuals and corporate bodies set by the Central Bank of Nigeria (CBN) will also lead to the increase in the usage of Pos and the overall cashless policy.
Meanwhile, data from the Nigeria Inter-Bank Settlement System (NIBSS) has also revealed that bank customers in Nigeria transferred a total of N2.1 trillion over mobile transactions in November 2022.
The value of transactions in November is also the highest monthly record on the platform.
Year on year, the NIBSS data showed that the value of mobile transactions has grown by 148 per cent in the 11 months of this year compared to the N6.8 trillion recorded in the same period last year.
Flutterwave Receives PSP, Payments Facilitator Licenses in Egypt
Nigeria’s leading fintech giant, Flutterwave has received two licenses in Egypt as it moves to deepen payments in Africa and connect the continent to the rest of the world.
The company, in a short note from its Chief Executive Officer (CEO) and Co-founder, Olugbenga GB Agboola, announced that Egypt Government had approved the Payment Services Provider license and Payments Facilitator license for its operations in the North African nation.
He said “I’m so proud to announce that we (Flutterwave) have accomplished a major milestone in our journey as we obtained our Payment Services Provider and Payments Facilitator licenses in Egypt 🇪🇬.
“Our vision is to connect all major parts of Africa through payments and further connect Africa to the world and this new license is yet another step in that direction.
“Truly, this is big news for our customers, partners, investors, and other stakeholders.
“I am excited to see how this new license helps us provide first-class payment services and seamlessly connect businesses to their customers in Egypt 🇪🇬.”
Founded in 2016 with the aim of making it easier for people in Africa to pay and get paid, both locally and globally. Flutterwave’s main products is its payment gateway, which enables businesses to accept payments from customers through a variety of channels, including debit and credit cards, bank transfers, Paypal and mobile money. The payment gateway is secure and reliable, with 24/7 support and dispute resolution services.
Another important product offered by Flutterwave is its Rave platform, which enables businesses to send and receive payments, as well as manage their finances, in a single place. Rave integrates with popular e-commerce platforms and offers a range of features, including invoicing, recurring payments, and currency conversion.
Flutterwave also provides individuals with financial services through its Barter platform. Barter allows users to make payments, transfer money, and pay bills from their mobile devices. The platform is easy to use and supports multiple currencies, making it ideal for people who travel frequently or who need to send money to friends and family abroad.
In addition to its core products, Flutterwave has a range of partnerships and integrations with companies and organizations that provide complementary services, such as e-commerce platforms, payment processors, and financial institutions. This helps to create a seamless experience for users, as well as providing businesses with a range of options to choose from when setting up their payment systems.
Kenya Withdraws Financial Impropriety Case Against Flutterwave
Nigerian fintech and African unicorn Flutterwave have been cleared of money laundering allegations leveled against it by the Kenyan Asset Recovery Agency (ARA).
The withdrawal of the charges by a Kenyan high court was verified and revealed by a lawyer representing Flutterwave Robert Gitau.
About seven months ago, Flutterwave had its bank accounts closed following a court order by a Kenyan high court that accused the Fintech giant and some companies of money laundering and card fraud which violated the country’s anti-corruption laws.
Flutterwave alone had its accounts frozen to the tune of $56.7 million (6.7 billion Kenyan Shillings) by Kenya’s asset recovery agency.
According to the court filing, Flutterwave bank accounts operations had suspicious activities where funds could be received from specific foreign entities which raised suspicion. The funds were then transferred to related accounts as opposed to settlements to merchants.
This forced the Central Bank of Kenya to send out a circular to all financial institutions in partnership with Flutterwave to cease working with the fintech firm.
Reacting to the allegations, Flutterwave released a statement stating that such claims were false. The company wrote, “financial improprieties involving the company in Kenta are entirely false, and we have the records to verify things”.
Flutterwave further disclosed that it maintains the highest regulatory standards and is proactive in engagements with regulatory bodies to stay compliant.
Valued at $3 billion in its last funding round, Investors King understands that the fraud and laundering accusations, as well as internal scandals that rocked the Fintech giant, stalled its IPO offering.
This spurred Flutterwave to hire Oneal Bhambani, Ex-America Express as CFO, and also Gurbhej Dhillon, an Ex-Goldman Sachs as CTO, which an analyst believed that such an appointment was necessary as most of the scandals that rocked the firm were financial and an experienced CFO would have prevented or at least controlled it better.
Meanwhile, on January 11, 2023, Investors King reported that Flutterwave is currently in talks to acquire Railsr, a prominent British fintech company, following the impactation of inflationary pressures.
Elon Musk Push Plans For Twitter to Offer Fintech Services
Twitter CEO Elon Musk is currently pushing ahead with his plans for Twitter to offer fintech services, as he seeks to incorporate a payments option on the platform.
This move is suggested to be connected to Musk’s statement after he neared a deal to buy Twitter, in which he disclosed via a Tweet that the platform would be an everything app. He tweeted, “Buying Twitter is an accelerant to creating X, the everything app”.
After he purchased the company, on November 2022, Musk revealed his vision for Twitter to enter the payments market during a live-streamed meeting with Twitter advertisers, hosted on Twitter spaces.
Musk hinted that in the future, users would be able to send money to others on the platform, extract their funds to authenticated bank accounts, and after, perhaps, be offered a high-yield money market account to encourage them to move their cash to Twitter.
Investors King understands that Twitter has already started the process of developing software and applying for regulatory licenses to add a payment component to the platform.
Sources familiar with Twitter’s plan disclosed that the platform has started applying for state licenses after filing to be a payments processor with the U.S. treasury in November.
Few analysts suggest that Musk’s plan to incorporate the payments option on Twitter could be him making a move to restore lost revenue after advertisers on the platform paused their ads over concerns regarding content moderation and free speech policy.
Musk plan to push Twitter into the online payment space could pose a threat to online payment giant Paypal.
Meanwhile, the financial times noted that if eventually Twitter becomes a payments processor, it would face stiff competition from existing apps within that sphere, also noting that it could also expect to contend with high levels of regulatory scrutiny, potentially presenting another level of difficulty for the company.
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