Flutterwave has acquired payment licenses in 13 states in the United States of America as part of the company’s strategies to dominate the remittance market in Africa.
Remittance from Africans living in the diaspora, including the United States, has grown significantly in recent years. Data from FXC Intelligence show that the value of remittances to Africa increased from $31 billion in 2010 to $43.8 billion by 2022.
Nigeria is among the top remittance recipients globally, with $19.3 billion in 2022. The growth of the market has since attracted investments from players, including banks and financial institutions who are expanding their business operations to cover the market.
Flutterwave, which has already processed over 550 million transactions totaling more than $32 billion and served over two million businesses, has extensive infrastructure across 34 African countries. The new licenses, therefore, give the company an expanded reach, particularly in a key market – the United States of America. The company is also planning to become a publicly listed company on the New York Stock Exchange (NYSE).
“They are looking to list very soon; so, they are trying to create an exit liquidity event for their shareholders. One way to do that would be to continue to show the value they are creating by getting more market share,” said a source who wants to remain anonymous to speak freely.
The acquired licenses grant Flutterwave permission to operate in Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota. Alongside an existing partnership with a licensed financial institution, the company is now able to serve customers in 29 states in the U.S.
The move by Flutterwave comes barely a month after all the cases the company was facing in Kenya were dropped, giving in a go-ahead to spread its wings within East Africa’s economic powerhouse.
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