Fintech Startup, Payday Explains Restriction on 2,000 Accounts
- Fintech Startup, Payday has finally responded to customers' concern over restricted accounts
- The fintech startup explained that customers' accounts were restricted due to a security issue
- It stated that it will discontinue business with Mastercard.
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Payday, a fintech company has reacted to claims of restricted access to about 2,000 accounts and funds by some customers as well as Mastercard balance and withdrawal restrictions.
This is coming after the Pan-African neo-bank issuing global (USD, GBP & EUR) accounts to Africans announced its re-entry into Rwanda following the official launch of SpaceX's Starlink in East Africa.
Legit.ng earlier reported that the fintech startup stated that it serves Africans ready to send, receive, and spend money globally without limitations.
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The fintech, in a social media post signed by Favour Ori, Payday CEO, apologized for the port experience faced by users, explaining that the team has been tackling technical issues with its service providers which has been affecting the quality of its business.
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It stated:
We sincerely apologise for the poor experience you have faced this past few weeks on the PayDay app. Unfortunately, we have been tackling technical issues with our service providers which have affected the quality of our sevices.
It however assured that funds are safe as the team is committed to resolving any existing issues with payday platform and restoring trust.
Why accounts were restricted
The fintech firm noted that, like any other fintech, it has put in place safeguards to continuously monitor and exclude clients it believes are engaged in illegal or fraudulent activity.
Based on this, and as required by law, it stated that it might restrict accounts if it discovers that the security of the customers' accounts has been breached or if it sees odd behaviour that could be related to fraud.
He added that the startup might be forced to block accounts for actions that contravene rules issued by important regulatory agencies or internal standards.
The firm claims that because it recognises how difficult it is for legal clients to be unable to access their funds, banning accounts is a choice that it typically handles with the highest attention and consideration.
It noted:
When we restrict an account, we immediately begin investigations internally. We also engage affected customers via email, while working with the compliance team to get to the bottom of the issue.
Explaining why 2,000 accounts were temporarily blocked after an internal technology detected behaviours that violated its terms of service, it added that innocent persons may occasionally be harmed by account limitations.
It, however, said after careful investigation, such accounts are unlocked and consumers are able to conduct business as usual.
It noted that although this number only represents a small portion of its client base, the team took decisive steps to resolve the issue, adding that restriction has been reversed on on over 60% of affected account.
It is important to note, however, that during this phase, all unaffected accounts have continued to carry out transactions smoothly with our virtual VISA/Verve cards as well as services such as bills payments, currency exchange and so on.
PayDay terminates account with Mastercard
It said that it has terminated relationships with its former providers and given a substitute card till the conclusion of current reconciliation processes as a follow-up to its prior message with regard to offering a better experience with the Mastercard service.
In order to achieve this, it indicated that it is cancelling the current cards and crediting the remaining card balances to the wallets of the impacted customers. It further stated that the entire process should be finished three weeks after this announcement was released.
MultiChoice, owner of DSTV, launches payment bank to challenge Flutterwave, Opay and others
MultiChoice Group, the South African media company known for owning DSTV and GOtv, is making a foray into banking service by launching a new payment infrastructure platform called Moment, Legit.ng earlier reported.
In collaboration with investors Rapyd and General Catalyst, MultiChoice aims to revolutionise the payments landscape in Africa by providing businesses with a more accessible, faster, and cost-effective payment infrastructure.
According to a statement by MultiChoice, Moment will consolidate the $3.5 billion in payments processed annually by the company.
Source: Legit.ng
