Payments firm Virtual Pay International Limited has announced that it has received a Payment Service Provider (PSP) to carry out Payment Gateway Services from the CBK.
This aligns with the scope of the National Payment System (NPS) Act, 2011, NPS Regulations 2014, which task payments firms to get authorization before they can conduct payments services in Kenya.
The fintech firm is one of the few companies that has achieved this feat.
Lately, it has become apparent that many fintech corporations do not have a license to operate in the country. One of them is Flutterwave. The Lagos-based unicorn says it applied for the same license many years ago, but the CBK has not granted it. The reason for the delay has not been given. It has also not been at the right side of regulations following recent controversies that have since eroded its name.
Another firm that does not have a local license for payments and remittances is Chipper Cash. It ventured into Kenya back in 2019 and has since expanded its operations in other African states. The firm, which is valued at more than 2 million USD, has a local office that serves as a nerve centre for local operations. Its employees work on global products that are offered in other countries, but not in Kenya.
Circling back to Virtual Pay International Limited, which was founded in 2019, the company says it looks forward to collaborating with all sector players in Kenya, including banks, card schemes, and other financial institutions. The partnership will eventually help it scale operations for the benefit of all stakeholders.
The license will allow Virtual Pay to offer its payment processing services to merchants, local and international. The firm adds that its objective is to play a pivotal role in the growth of the financial sector, contributing to the growth of the economy at large.
“We are humbled by the approval from the Central Bank, to offer our services to the Citizens of Kenya, and the global economy at large. We understand the importance of this license, and the regulatory and compliance expectations from the CBK. We shall continue to steadfastly adhere to all regulations and compliance directives while offering innovative, exciting, and state-of-the-art services to all our partners” says David Morema, Virtual Pay Group CEO.