Providus Bank deactivates PiggyVest and Monnify virtual account numbers
Monnify announced on its social network that it received an official message from Providus Bank that it will no longer support the virtual account service with immediate effect.
“Yesterday we received an official message from our partner Providus Bank that they will no longer support the virtual account service with immediate effect.
“We would like to ask you not to panic and make sure you can access all of your funds as we are currently working with the bank to reconcile available funds for availability and a smooth exit,” he told Monnify tweeted.
While the bank did not indicate a reason for deactivating virtual accounts, it is believed that this cannot be related to the recent CBN directive prohibiting financial institutions from facilitating cryptocurrency-related transactions through the banking system.
Virtual account numbers have been used by fintech companies such as Piggyvest, Risevest, Cowrywise Abeg app and others over the past 3 years. Virtual account numbers are used to ensure that their clients can effectively fund their wallets through bank transfers using USSD, internet banking and other bank transfer channels, rather than relying on debit cards.
Providus Bank’s decision to no longer maintain virtual accounts left users in a state of uncertainty, especially after the bank did not provide a clear reason.
However, Monnify promised to partner with another bank to restore service to organizations using its services.
For its part, PiggyVest, another fintech payment platform that helps manage the finances of companies and individuals, has already assigned new virtual account numbers to its users, using Wema Bank as a new partner.
He informed his customers via his Twitter account, stating, “We have received a notification from our virtual account provider (Providus Bank) that existing virtual accounts are currently inactive.
“Login to your account to get your new virtual account details”
Other fintechs are expected to react later this week.
Since then, the development has met with controversy on Twitter.
Source: – Nairametrix
