Techrectory
In a bid to assuage mounting concerns and account restrictions, Payday, a Pan-African fintech startup specializing in global payments, has responded to customer complaints following restrictions placed on approximately 2,000 accounts.
The company cited security concerns and technical glitches with its service providers as the root cause of the ongoing issues.
Favour Ori, Payday’s CEO, acknowledged the deteriorating user experience and issued an apology via social media.
He highlighted the technical difficulties the company has been grappling with, which have adversely affected the quality of their services, causing customers’ trust to waver.
Ori stressed that account restrictions were imposed based on strict protocols meant to curb fraudulent and illegal activities.
He outlined reasons for restrictions, including suspected security breaches, abnormal behavior possibly linked to fraud, and non-compliance with regulatory directives. He emphasized that the decision to restrict accounts is taken seriously and with utmost consideration.
Following internal investigations triggered by flagged activities, Payday has reversed restrictions on over 60% of the affected accounts. Favour Ori, however, acknowledged the inconvenience faced by innocent customers during this process and assured that these cases would be addressed promptly.
The company has also terminated its association with Mastercard due to service issues, which further disrupted user experience. Payday plans to expedite the transition to a new card provider, with the aim of crediting outstanding balances to customers’ wallets within three weeks.
Despite these efforts, discontent among some users persists, with complaints of lengthy account lockdowns and difficulties accessing funds.
🔈Update on Account Restriction Claims pic.twitter.com/tM4P87W3UF
— Payday (@ourpaydayHQ) August 21, 2023
Payday’s Twitter account recently responded to these concerns, urging affected customers to retry their transactions.
As Payday strives to regain its users’ confidence, industry observers emphasize the broader challenge fintechs face in maintaining seamless services while safeguarding against fraud. The company’s commitment to rectifying technical issues and restoring trust will be a pivotal factor in determining its ability to bounce back from this setback.
As Payday navigates this crisis, its dedication to rectifying technical issues and reinstating customer trust remains the focal point, signaling a pivotal moment in the fintech industry’s evolution.
