Flutterwave, the payment-centric fintech in Africa, has secured payment licenses for 13 US states, a strategic move anticipated to reinforce its foothold in the African diaspora remittance market, experts suggest.
A substantial surge in remittances from Africans abroad, notably the US, has drawn attention, with remittances to Africa skyrocketing from $31 billion in 2010 to $43.8 billion in 2022. Nigeria remains a top recipient, with inflows hitting $19.3 billion last year. This burgeoning market has captivated investments from various financial players.
Flutterwave, renowned for processing 550 million transactions valued at over $32 billion and catering to two million businesses, possesses a robust presence across 34 African countries. The newly acquired licences bolster the company’s footprint, specifically in the US, a pivotal market. Furthermore, the fintech giant intends to go public on the New York Stock Exchange (NYSE).
Sources, desiring anonymity, noted, “They are aiming for a listing soon, emphasizing their commitment to demonstrating the value they add by expanding their market share.”
The licenses obtained enable Flutterwave’s operations in 29 US states, accompanied by existing partnerships with licensed financial institutions. This positions the company to cater to customers in these regions effectively.
Flutterwave’s capabilities now span international payment processing across 150 currencies, accepting various payment modes—local and international cards, mobile wallets, and bank transfers. Its expansive network spans Nigeria, Uganda, Kenya, South Africa, and 30 other African nations.
Olugbenga Agboola, Flutterwave’s CEO, has emphasized the significance of these licences, illustrating a commitment to regulatory compliance, trust, and the safety of customer funds.
Stephen Cheng, Flutterwave’s Executive Vice President for Global Expansion and Partnerships, emphasized the company’s growth and dedication to serving diverse global geographies, particularly the African diaspora. He underscored the importance of these licenses in fostering regulatory trust and customer confidence.
The recent acquisition aligns with Flutterwave’s expansion agenda, epitomizing its pursuit of regulatory adherence and safety while facilitating seamless remittance solutions for the African diaspora. The fintech previously extended its remittance solution, Send App, to Canada and the US in a bid to further its market reach.
