A few days after it was revealed that the fraud allegations in Kenya against Nigerian fintech startup, Flutterwave, had been dropped, the fintech behemoth has acquired a payment processing licence in Egypt.
The Payment Services Provider and Payment Facilitator licences mean Flutterwave can now process and receive payments on behalf of its users in the North African country.
Similarly, it will be launching its "Flutterwave for Business" offering. Flutterwave for Business, launched at its Flutterwave 3.0 launch in 2022, includes a fintech as a service offering that allows third parties to embed financial services into existing products, access to loans, and card issuance.
Like many other African countries, the acceptance of digital payments in Egypt has grown since the COVID-19 pandemic forced individuals to get on board the digital train. A 2022 Mastercard report revealed the growth in the adoption of digital financial services in Egypt.
According to the report, 88% of Egyptians had used at least one digital payment service in the last year. The use of cash remains prevalent, but 64% of Egyptian users have increased their usage of digital payment methods compared to the global average of 61%. Furthermore, Mordor Intelligence predicts that the mobile payments market will experience a compound annual growth rate of 19% between 2022 and 2027, even as Statista expects total transactions to exceed $14 billion in Egypt.
All this points to growth opportunities, and Flutterwave is keen on getting in on the act. At the same time, its entry into Egypt could serve as a foothold for a North African and Middle Eastern expansion drive.
Aalaa Gamal, Regional Manager, North Africa in Expansion & Partnerships, Egypt, said, "We’re excited to receive the payments services provider and facilitator licenses in Egypt. The licenses will enable us to be the go-to payment processor and digital transformation partner for global settlements in Egypt, which enables our customers to expand quickly within or outside of the country. This, for us, is the beginning of other strategic wins in the North Africa and Middle East regions."
Olugbenga Agboola, Flutterwave CEO, added, "Our vision is to connect all parts of Africa through payments and connect Africa to the world. This way, it is easier for multinationals expanding into Africa to do so. This achievement is yet another step in that direction."