Fintech Companies’ Virtual Accounts Deactivated By Providus Bank

Two fintech companies, Monnify and PiggyVest have had their virtual accounts deactivated by Nigeria’s financial services, Providus bank.

Monnify, a payment gateway for businesses to accept payments from customers, either on a recurring or one-time basis took to Twitter that it received official communication from Providus Bank that it will no longer be supporting virtual account with immediate effect.

“Yesterday, we received official communication from our partner – Providus Bank that they would no longer be supporting the virtual accounts service with immediate effect.

“We would ask that you don’t panic and be rest assured that you would be able to access all your funds, as we are currently working with the bank to reconcile the funds in their position for availability and graceful exit,” Monnify tweeted.

PiggyVest another fintech payment platform that helps in managing the finances of businesses and individuals in a statement also said “We received information from our virtual account provider that the existing Providus Virtual Accounts are inactive,”

The sudden deactivation of the virtual accounts is believed to be in connection to the directive published by the CBN that all banks should desist from cryptocurrency operations

Providus Bank’s decision to no longer support virtual accounts has left users in a state of uncertainty, especially after the bank gave no clear reason.

Monnify has however promised to partner with another bank to restore the service back to the organizations that use its service.

On its part, PiggyVest has already assigned new virtual account numbers to its users using Wema bank as their new partner.