Home Service company More trouble for Flutterwave as company shuts down virtual dollar card service

More trouble for Flutterwave as company shuts down virtual dollar card service

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UKRAINE – 2021/03/12: In this photo illustration the Flutterwave logo for a payment company seen displayed on a smartphone and computer screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
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July 16 (THEWILL) — Amid controversies raging against it, African financial technology (Fintech) company Flutterwave has announced plans to end the use of its virtual dollar card service, “Bartercard “, effective July 17, 2022.

This can compound the image fading challenge that the company has suffered lately.

The company made the announcement to customers on Friday, saying the shutdown will be in effect until further notice.

By this development, many users of the service will be denied access to perform dollar-linked transactions using their financial platform.

Analysts fear this will exacerbate the problem of online dollar transactions in Nigeria in Africa.

The company said: “You will not be able to make online and in-store payments and purchases using your virtual card(s); You will not be able to provision one or more existing virtual cards; your existing virtual card(s) will be terminated and the corresponding balance will be credited to your payment balance; You will not be able to create new virtual card(s).

It may be recalled that the Fintech company had in August 2020 revealed that it was working with major card infrastructure partners to issue cards to their customers.

This development, however, has prompted reactions from users of virtual card services. Some shared their concerns over the sudden announcement that the card would be unavailable from Sunday. Many have decried the relentless dollar card challenges in Nigeria.

On Twitter, @jessedayusuf asked “PayDay and Barter, both having their virtual cards” temporarily unavailable. Has Nigeria been blacklisted?

@onejoblessboy on Twitter said: “Barter removing the Dollar Card feature only shows the state of the industry and perhaps, by extension, the state of the nation. Remember PiggyVest has also temporarily discontinued its dollar savings feature Nigerians, wear your ‘jeans!’ Payments.”

Edwin Ajogun described the news as a blow to Nigeria’s payment system when he said “Barter’s dollar cards will no longer be available from this Sunday, another blow to the Nigerian economy.”