How Flutterwave Aims to Dominate Remittance in Africa with Acquisition of 13 US Licenses

Flutterwave, a leading African fintech company, has recently announced a significant expansion in the United States. By acquiring payment licenses in 13 states, Flutterwave is making a strategic move to dominate the remittance market in Africa. 

This development marks a major milestone in the company’s journey towards becoming a major player in the global fintech landscape.

Remittances have soared in the growing market

The remittance market, especially from Africans in the diaspora, has witnessed remarkable growth. According to FXC Intelligence, remittances to Africa soared from $31 billion in 2010 to $43.8 billion by 2022.

Nigeria, a key market for Flutterwave, stands as one of the top global remittance recipients with $19.3 billion in 2022. This surge has attracted various financial institutions, including banks and fintech firms, to invest and expand their services to capture this growing market.

With a history of processing over 550 million transactions worth more than $32 billion and serving over two million businesses, Flutterwave has established an impressive presence across 34 African countries. The new licenses will significantly enhance its reach, particularly in the crucial US market. Flutterwave is also eyeing a public listing on the New York Stock Exchange (NYSE), a move that will further solidify its position in the global fintech sector.

Flutterwave can now operate in different US states

The licenses acquired enable Flutterwave to operate in a diverse range of US states, including Arizona, Arkansas, Maryland, Michigan, and others. This expansion, combined with an existing partnership with a licensed financial institution, allows Flutterwave to serve customers in 29 US states. 

Flutterwave’s robust infrastructure now supports international payment processing in 150 currencies, with various payment modes like local and international cards, mobile wallets, and bank transfers.

This strategic move is not just about market expansion; it is also a step toward Flutterwave’s initial public offering (IPO) ambition. As stated by Olugbenga Agboola, CEO/co-founder of Flutterwave, becoming a publicly listed company will attract larger global clients who require a high level of compliance and a global perspective similar to theirs.

What to note

Stephen Cheng, executive vice president of global expansion and partnerships at Flutterwave, emphasizes the importance of regulatory compliance. The acquisition of these licenses is a testament to Flutterwave’s commitment to operating with safety and soundness, gaining the trust of regulators, partners, and customers alike.

Flutterwave’s acquisition of these US licenses is a strategic move to strengthen its position in the remittance market and to fulfill its larger aspirations of becoming a publicly listed company.