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Why Nigerian fintech, Thepeer, is shutting down

The three-year-old Nigerian fintech startup has announced its decision to shut down operations after struggling with compliance

Founded in 2021, Thepeer, a Nigerian-based tech infrastructure startup connecting businesses’ wallets, announced on Monday 1st of April that it is shutting down and intending to return its remaining capital to investors after failing to scale.

Thepeer’s founders cited compliance issues as one of the main reasons they decided to wind down. They also blamed it on the slow acceptance of wallets as a viable payment option in Nigeria, contrary to their expectations at the beginning of the business.

In a statement, the company said, “Our unique service had its challenges, the first being compliance issues. Additionally, the overall acceptance of wallets as a viable payment option didn’t grow as rapidly as we had hoped.”

For nearly three years, Thepeer has used its APIs to provide an alternative network where fintechs and businesses can embed different sets of products into their applications and websites to facilitate customer money movement.

In an uncommon gesture among startups that shut down, the founders of Thepeer said they would return unspent capital to their investors. However, they did not disclose the amount to be returned.