Flutterwave has received approval from Nigeria’s apex bank, the Central Bank of Nigeria (CBN) to own and operate an Unstructured Supplementary Service Data (USSD) technology product.
According to a statement from the company, the CBN has granted approval for this solution. The USSD service will enable its enterprise and retail customers to access their products on this infrastructure.
“We are excited to introduce this new payments solution to the market, staying true to our promise to provide modern payment infrastructure that empowers Africans. Our new payment channel offers Africans the benefits of security and convenience in their day-to-day transactions, said Dayo Okesola, the head, USSD product engineering.
Ventures Africa reports that: “Nigeria’s leading payments infrastructure for banks and businesses has been a major part of the Fintech ecosystem in Africa processing more than $1.2 billion dollars across 10 million transactions and introducing 4 different products to enable Africans easily transact and transfer cash online. The startup raised over $10 million in a Series A round of funding last year.”
Obviously, this approval will boost Flutterwave’s portfolio as the leading payment platform in Nigeria and perhaps this will be a wakeup call for Nigerian banks that the many fintech startups springing up in the country may threaten the country’s banking system.