Flutterwave, the prominent African fintech specializing in payments, has revealed its acquisition of payment licenses for 13 US states. This move is seen by experts as a strategic step towards the company’s ambition to dominate the African remittance market.
Remittance flows from Africans living in the diaspora, particularly the US, have witnessed significant growth in recent years. FXC Intelligence data reveals that remittances to Africa have surged from $31 billion in 2010 to a staggering $43.8 billion by 2022. Nigeria, a major recipient of remittances globally, received $19.3 billion in 2022 alone. This booming market has attracted major players, including banks and financial institutions, expanding their operations to cater to this growing demand.
With over 550 million transactions processed, exceeding $32 billion in total value, and serving over two million businesses, Flutterwave boasts extensive infrastructure across 34 African countries. These new licenses significantly expand the company’s reach, particularly in the crucial US market. Additionally, Flutterwave plans to go public on the New York Stock Exchange (NYSE).
“An upcoming listing is likely, and they are aiming to create an exit liquidity event for their shareholders,” said an anonymous source, seeking anonymity for candid remarks. “Continuing to showcase their value proposition by capturing a larger market share would be a key strategy.“
The newly acquired licenses allow Flutterwave to operate in Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota. Combined with an existing partnership with a licensed financial institution, this expansion enables Flutterwave to serve customers in 29 US states.
The fintech giant now boasts international payment processing capabilities in 150 currencies, supporting diverse payment modes like local and international cards, mobile wallets, and bank transfers. Its infrastructure spans over 34 African countries, including Nigeria, Uganda, Kenya, and South Africa. This extensive reach underscores Flutterwave’s ambition to dominate the industry.
“These licenses enable Flutterwave’s solutions like Send App, facilitating money transfer between the US and Africa, and enterprises using Flutterwave for global last-mile payouts,” a company statement clarified.
Furthermore, this acquisition brings Flutterwave closer to realizing its initial public offering (IPO) aspirations, as reported by a source in August. Olugbenga Agboola, CEO and co-founder of Flutterwave, stated in an interview with Bloomberg, “There’s a new customer segment we’ll attract once we go public. Large global clients require the same level of compliance and global perspective as they do.”
“Acquiring these licenses expands our regulatory footprint, demonstrates our ability to deliver safe and sound services, and fosters trust with regulators, partners, and customers,” said Stephen Cheng, Executive Vice President of Global Expansion and Partnerships at Flutterwave.
“We are committed to serving customer needs across as many geographies as possible, particularly those with a significant African diaspora. These licenses reflect our dedication to collaborating with regulators across diverse markets, adhering to their requirements, and safeguarding customer funds. We will continue to build an environment of trust and security,” Cheng added.
Flutterwave had previously announced the expansion of its remittance solution, Send App, to Canada and the US in August.
