PiggyVest, Monnify Search For Alternative As Providus Bank Shuts Virtual Payment Account

Providus Bank Limited on Sunday announced that it has shut its virtual payment service till further notice, a move that leaves fintech operators including PiggyVest and Monnify scouting for alternatives in other to remain in business.

Providus Bank’s virtual payment services are used by several fintech companies such as PiggyVest and Monnify.

While disclosing the development, the bank did not mention any reason for shutting down its virtual payment service.

The announcement comes few days after the Central Bank of Nigeria directed financial institutions to block accounts linked to Cryptocurrency trading.

Providus said on Sunday, “We wish to announce that our virtual payment services are currently unavailable. In the meantime, customers are advised to use alternative payment options. Thank you.”

We wish to announce that our virtual payment services are currently unavailable. In the meantime, customers are advised to use alternative payment options. Thank you.

— ProvidusBank (@ProvidusBank) February 7, 2021

With the development, PiggyVest, a fintech firm that that has the virtual accounts of its customers with Providus Bank, has contacted its customers over fears that their funds are no longer secured with the fintech firm.

PiggyVest said on its Twitter handle, “We received communication from our Virtual Account Provider that the existing Providus virtual accounts are currently inactive.

“Once again, we assure you that your funds are safe and secure. We are available to answer any other questions you may have. Please send us a DM for further clarification. Thank you”

Update on new virtual account numbers! pic.twitter.com/3fFiEdx4JK

— PiggyVest (@PiggyBankNG) February 7, 2021

Monnify, another fintech firm told its customers not to panic over the development as it was working to establish fresh partnership with other banks.

Monnify said, “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 a graceful exit.

“We believe as soon as tomorrow but no later than Wednesday, we will be back with a new partner bank.

“Your integration to us will not change and we will only be communicating new account numbers to replace the issued ones.”