Flutterwave came into the Nigerian financial market in 2016. From 2016 till now, the payment and finance-related firm has grown to be valued at over $3 billion. It is Africa’s first FinTech company to become a unicorn company. Sadly, it has been repeatedly hit with scandals. In this post, we’ll be looking at Flutterwave’s scandals, and resolving your fear as a user.
Customers are always scared when they do business with an unreliable company. This is more especially when it is a Finance company. Flutterwave, on having these scandals, put their customers at risk. These customers become scared of doing business with them.
On their own end, Flutterwave have denied all these scandals, stating that they are reliable, and would always serve the customers right. Now, let’s take a look at some of these scandals.
Around 2021/2022, a reporter wrote a controversial piece that Flutterwave is used for Money Laundering. The piece stated that Flutterwave wasn’t profitable yet after all these years, that it was Money Laundering that helped the company stay afloat. It was an explosive piece.
The piece continued that this affected their services. The piece was strongly challenged by the Flutterwave team. The team denied the allegations, and cleared the air. Nigerians and other Africans, who use the FinTech platform, forgot about the issue.
In the last quarter of 2022, the Kenyan Government accused Flutterwave of Money Laundering in their country. They withheld the licence of the company, and put them under investigation. To this Kenyan Government, Flutterwave aren’t permitted to move money from the country, especially in the secret and unofficial way they did.
Flutterwave team denied these allegations. They got into the case with the Kenyan Government. In the first quarter of 2023, the Government lifted the ban on them And cleared them of any wrong doing.
In the first quarter of 2023, reputable media companies released news pieces that Flutterwave was hacked and more than $2 million was missing from its database. It was really scandalous.
It took a while for Flutterwave to refute the news pieces, stating that no amount was missing. However, Flutterwave had taken actions and blocked several accounts connected to this case.
No one can say for sure what’s happening. Nonetheless, a FinTech startup or firm having this repeated issues is really problematic.
Resolving your Fear as a User
You don’t have to be too scared as a user getting to know of all these scandals. Of course, you have to be wary, and know the level of amount you have with the company since it’s not a full financial institutions protected by CBN.
It is licensed by CBN as a payment gateway, and commercial platform, not a bank. You should be wary a bit.
In conclusion, you should keep doing business with them and using their account. While doing this, check the level of amount you leave with the company. Having written this, this post has done good justice to the
Flutterwave’s scandals, and resolving your fear as a user.