Nigerian Stakeholders In Fintech Firm Should Be Jittery Now

Nigerian stakeholders in financial technology (Fintech) firm, Mercury should be jittery now.

This is because their country has been listed amongst others where the company plans to terminate the accounts of businesses.

The threat which stands to harm such fintech is expected to take effect August 22, 2024.

Reports sighted by The Eagle on ambusinessng, indicates that Mercury has identified 15 African nations among 37 countries worldwide where it will no longer offer services.

This decision comes as part of revised eligibility criteria for opening accounts, recently updated by the fintech company, the report says, based on a list posted on its website.

The countries include Belarus, Cuba, Iran, North Korea, Syria, Ukraine, and Venezuela.

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According to the report, affected customers have got emails notifying them of the upcoming account closures, the company expressing regret for the development.

“We support U.S. companies founded by people across the globe as well as founders and venture capital firms. However, we currently can’t open accounts for founders living in the following countries and regions…”

Customers have been advised to take necessary actions before the August 22 deadline, after which access will be limited to viewing account documents.

According to the report, it is not the first time Mercury has taken action against African fintech companies, which are essentially tech startups.

As at March 2022, the company faced scrutiny over its practices concerning foreign account openings through its partner, Choice Bank.

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“The FDIC raised concerns about accounts being opened in countries deemed legally risky, prompting Mercury to shut down accounts of numerous African tech startups, including many from Nigeria.

“At the time, Mercury did not provide clear explanations for its actions nor did it issue warnings to the affected startups until concerns were publicly raised within the African tech ecosystem. CEO Immad Akhund later clarified that the company was adhering to internal procedures in compliance with regulatory standards”, the report added..