Nigerian fintech company Flutterwave has introduced a groundbreaking product called "Swap," in partnership with Wema Bank and Kadavra BDC, and with support from the Central Bank of Nigeria (CBN). Swap aims to digitize and simplify the process of obtaining foreign exchange in Nigeria. Acting CBN Governor, Mr. Folashodun Shonubi, believes Swap can address critical issues in Nigeria's FX market, including the lack of collaboration among institutions and heavy reliance on cash transactions.
Under this innovative system, Flutterwave, leveraging its International Money Transfer Operator license from the CBN, will facilitate the inflow of foreign currency, Kadavra will utilize its BDC license to sell it, and Wema Bank will support the entire process. Shonubi noted that BDCs unwilling to embrace digital transformation would be phased out, aligning with the CBN's efforts to transition to a cashless FX market. He also emphasized that unregulated foreign transactions would cease as the CBN closely monitors all Swap transactions.
Swap's launch follows the CBN's commitment to clearing all FX backlogs within two weeks. This initiative is expected to enhance liquidity in the FX market and reduce dependence on the parallel market. Swap is exclusively available on Flutterwave's web app for registered Nigerian users and offers access to dollars, euros, and pounds. Starting in October, Flutterwave will issue cards to enable swift access to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Users must undergo identity verification and document submission before accessing the platform, ensuring a seamless and secure FX exchange experience. Swap will also be accessible via API for banks, further streamlining the process.
Read more on TechCabal