Flutterwave, a prominent payment-focused fintech in Africa, has acquired payment licences for 13 states in the US, marking a strategic move to dominate the remittance market. Remittances from Africans in the diaspora, particularly the United States, have seen substantial growth, making Africa an attractive market. Flutterwave’s acquisition aligns with its ambition to become a publicly listed company on the New York Stock Exchange (NYSE).
Key Points:
- Remittance Market Growth:
- Remittances to Africa surged from $31 billion in 2010 to $43.8 billion in 2022. Nigeria, a top remittance recipient, received $19.3 billion in 2022. This growth has attracted investments from various players, including banks and fintechs.
- Flutterwave’s Strategic Move:
- Flutterwave, with over 550 million transactions totaling $32 billion, aims to dominate the remittance market. The acquisition of payment licences for 13 US states enhances its reach and positions it as a key player in the US-Africa remittance corridor.
- Public Listing Plans:
- The acquisition of licences is seen as part of Flutterwave’s preparation for an initial public offering (IPO) on the NYSE. By expanding its market share and demonstrating value, the company aims to create an exit liquidity event for shareholders.
- Licence Details:
- The acquired licences allow Flutterwave to operate in states including Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota. Coupled with existing partnerships, the company can now serve customers in 29 US states.
- Infrastructure and Payment Modes:
- Flutterwave’s infrastructure spans 34 African countries, and it offers international payment processing in 150 currencies. The company supports various payment modes, including local and international cards, mobile wallets, and bank transfers.
- Money Transfer Licences:
- Money transfer licences issued by state regulators empower Flutterwave’s solutions, including the Send App, facilitating money transfers between the US and Africa. These licences also enable enterprises using Flutterwave for last-mile payouts globally.
- IPO Ambition Progress:
- The acquisition brings Flutterwave a step closer to completing its IPO ambition. The company emphasizes the importance of compliance, a global view, and regulatory trust to attract large global clients.
- Strategic Growth and Regulatory Trust:
- Flutterwave’s global expansion executive, Stephen Cheng, emphasizes the company’s commitment to servicing customer needs across geographies. The licences demonstrate regulatory compliance, safety, and soundness, fostering trust among regulators, partners, and customers.
- Extended Remittance Solution:
- In August, Flutterwave extended its remittance solution, Send App, to Canada and the US, expanding its footprint in the North American market.
Conclusion: Flutterwave’s acquisition of payment licences in the US positions the fintech to wield significant influence in the remittance market between the United States and Africa. The move aligns with the company’s broader strategy of global expansion and sets the stage for its potential public listing on the NYSE. As Flutterwave continues to grow its regulatory footprint, it aims to build trust and deliver services with safety and compliance, further solidifying its position in the competitive fintech landscape.
