Nigerian Fintech Shuts Down Virtual Card as New Naira Rate Worries Nigerians

• Users of the investing website Risevest were recently notified that their virtual card would be taken down
• Risevest blamed the closure on delays in resolving issues, fluctuations in exchange rates, and problems with the card issuers
• According to Risevest, all funds remaining on the cards after the shutdown will be transferred to the Rise wallet when the service ends

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Risevest, an investing site, recently informed users that their virtual card would be shut down as of September 30.

Risevest attributed the shutdown to issues with the card issuers, fluctuating exchange rates, and delays in issue resolution, in an email issued to users.

The fintech revealed that when the service terminates, all money still on the cards following the shutdown will be immediately moved to the Rise wallet.

Risevest further informed that although some may find this frustrating, the organisation is still dedicated to creating better products that are in line with the changing financial demands.

Carbon, another Nigerian fintech company, shut down its virtual card business some months prior to Risevest, according to report.

Legit.ng earlier reported that the Nigerian currency, the naira, dropped to an all-time low of N1,667.42 per dollar in the official window after the Central Bank of Nigeria (CBN) hiked interest rates to 27.25% to contain inflation and stabilise the exchange rates markets.

After trading on Wednesday, September 25, 2024, the naira dipped by 0.54% to keep the exchange rate at N1,667.42 per dollar relative to the N1,658.48 it traded on Tuesday, September 24, 2024.

The Nigerian currency crashed to a seven-month low of over N1,700 per dollar in the parallel market, the lowest since February 22, 2024, when traders quoted the dollar at N1,850 in the black market.

Fintechs Shut Down 105 Accounts

Legit.ng reported that a total of 105 accounts linked to unauthorised foreign currency transactions, money laundering, and financing of terrorism have been frozen by nine fintech businesses.

This comes after the Economic and Financial Crimes Commission (EFCC) applied to an Abuja Federal High Court.

On April 24, 2024, the court issued an interim injunction freezing the accounts for ninety days while the investigations were ongoing.