Thepeer reportedly shuts down three years after its inception due to compliance struggles with investor funds set to be returned.
Thepeer Shuts Down
API-based payment layer startup, Thepeer, is closing down due to compliance issues and the lack of acceptance of its product. The founders, Michael Okoh and Chike Ononye, have decided to return the remaining funding to investors as they believe pivoting or merging with another company is not feasible.
The shutdown comes nearly two years after Thepeer raised $2.1 million in a seed round led by Raba Partnership, known for early investments in companies like Flutterwave and Stitch. The startup aimed to provide fintechs with a platform to enable money movement directly from their wallets and apps using APIs.
Thepeer’s Idea for Businesses
The idea was to streamline interactions between businesses, allowing users to fund accounts on different platforms without the need to go through traditional banks. For instance, someone could transfer money from their PiggyVest account to their Risevest account without involving a bank intermediary.
Michael Okoh, Thepeer’s CTO, explained that their product simplified transactions between businesses by providing context to the data involved. However, despite efforts to acquire licenses and comply with regulations, Thepeer found itself operating in a regulatory grey area, which contributed to its closure.
Thepeer Will Enter Maintenance Mode for Now
For the time being, Thepeer will enter maintenance mode until a new direction or home for the platform is found.
“Compliance issues hindered us from launching key wallet providers or maintaining their services,” the founders stated.
Thepeer Compliance Challenges
The compliance challenges prompted Thepeer to team up with Flutterwave as a financial partner in 2021 to navigate regulatory requirements. Despite this effort, the founders observed the slow adoption of wallets as a payment option, requiring significant time and resources to educate users about their service.
After careful consideration, Thepeer has chosen to refund investor funds and cease operations.
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