As African economies continue to experience growth, the demand for reliable and efficient payment solutions continues to grow. This has seen a proliferation of technology companies seeking to solve complex challenges in payment infrastructure. In this regard, we have seen companies such as Flutterwave, Cellulant, DPO, PesaPal among others emerge. These firms have also been among the most funded by global investors, a testament to the immense possibilities in the industry.
Flutterwave is one among a handful of fintechs on the continent that has emerged to provide these services across borders, scaling to multiple markets across the continent, processing billions of dollars in transactions for a variety of businesses while picking valuations of more than a Billion Dollars along the way. The Fintech processes payments in 150 currencies and across different payment modes: local and international cards, mobile wallets, bank transfers and its consumer product Send.
In a keynote dubbed “BUILDING A PLANE WHILE FLYING IT – ACCELERATING FINTECH INNOVATION IN AFRICA”, Flutterwave’s Vice President of Legal and Government Affairs, David Oluranti, spoke of Flutterwave’s success in obtaining regulatory licenses and approvals in key African markets attributing it to compliance with regulations and good governance practices are key to building trust with customers, investors, and regulators. The keynote address was delivered as part of Kenyan Wallstreet’s Bulls & Bears event that took place in February.
Legal and regulatory compliance has been a major lever for fintechs operating on the continent, with the need to abide by licensing requirements, data protection laws, anti-money laundering as well as consumer protection laws. There is also the cost associated with compliance with the various regulations. The firm, whose operations began in Nigeria and since scaled to 34 markets across the continent has obtained regulatory licenses and approvals in key African markets such as Egypt, Nigeria, Rwanda, and Tanzania.
In the primary market of Nigeria, Flutterwave has since obtained licenses to operate as a Payments Services Solutions Provider (PSSP) and International Money Transfer Operator (IMTO). The two licenses allow the firm to facilitate transactions between financial service providers, merchants and customers. In 2022, the firm further obtained a Switching and Processing license by the Central Bank of Nigeria (CBN), allowing for the direct processing of transactions. In Egypt, the company has recently obtained Payment Services Provider and Facilitator Licenses while snapping an Electronic Money Issuer and Remittance Licenses from the National Bank of Rwanda in Rwanda allowing it to offer money deposits and withdrawals, electronic funds transfer, as well as inbound and outbound remittance services.
The Bulls & Bears event, a thought leadership series organized by the Kenyan Wallstreet, serves as a gathering of leading technology and finance thought leaders for an evening of networking and fireside chats. The February edition of the event took place at the sidelines of the Africa Tech Summit bringing together players in the fintech and payments industry. The panel consisted of industry leaders among them Akshay Grover, CEO Cellulant and Vishal Agarwal, investor and Chairman of Full Circle Africa.
Akshay Grover, CEO Cellulant
According to the Cellulant CEO, the fintech company acknowledges that regulatory compliance is a crucial factor in building a globally scalable fintech business in Africa. This requires building strong partnerships with regulatory bodies and stresses the importance of having a strong local team with a deep understanding of the market. This is because the African market is unique and requires a localized approach “By leveraging technology and building a strong local team, fintech companies can overcome the challenges and tap into the vast opportunities that exist in the African market. But one cannot come before the other” he said.
Vishal Agrawal, the CEO Full Circle spoke on the investing landscape in Africa, intimating that investing in African fintech is not without its challenges, but possess immense potential and significant rewards for those who back the right companies to growth. “I remain deeply optimistic about the future of fintech in Africa particularly around building payment infrastructure from credit scoring, identity and supply chain financing. We are seeing founders in our portfolio bring transformation ideas and solutions to life and we want to keep making the right bets and backing them” he added.
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