OPay will block accounts that violate KYC guidelines. On March 1st, 2024, Nigerian financial technology company OPay announced that it would be removing fraudulent accounts from its system.
During a press conference on Wednesday, the mobile money provider declared that accounts of non-KYC-compliant clients will also be blocked.
The know your customer (KYC) process is used by banks to obtain information about the identity and address of their customers. This process helps you avoid using bank services improperly.
Opay claims that the action was taken to strengthen platform security in order to protect customer deposits from dishonest users. A month after a report discovered problems with the company’s new client registration and verification process, the modification was implemented.
Olayemi Precilia, director of the cards business, addressed the concerns by announcing that new users would now need to enter their national identity number (NIN) in order to register an account and that the site has increased security measures.
If you have a tier one account and when you log in, your app will ask for your NIN. You are unable to continue if you do not enter that NIN. So that’s one of the things we’ve already done,” she said.
The second is that, if you are a new customer, you will use the NIN first. That is our current course of action. We are currently downloading information from your NIN into your wallet. It will debut in the upcoming month.
Additionally, users who do not comply will be blocked by March 1st.
Ikponmwosa Kolawole Odiase, director of partnerships at Opay, promised that “fraudulent accounts will be yanked off” the business’s system.
He clarified that the firm intends to create a system that would enable a backend verification of customers’ faces using BVNs and NINs in response to the criticism of the application’s insufficient face verification.
The relevant stakeholders, such as the regulatory bodies and KYC agencies, are collaborating together. He claimed that the goal of everything was to thwart fraud.
“The con artists are not going away, and we are beginning to understand how challenging it is as well.” Unfortunately, the industry is dealing with this issue.
“So many false accounts will undoubtedly disappear.”