Flutterwave, the top provider of payments technology in Africa, has announced that it has been granted licenses in Egypt as a payment services provider and a payment facilitator.
With the help of the licenses, Flutterwave will be allowed to function as a recognized provider of payment services in the nation, collect money on behalf of its clients, and handle local and international payment settlement.
As a result of these licenses, Flutterwave is now one of the few Egyptian payment service providers with the ability to handle both local and international settlements.
Recall, Flutterwave, a Nigerian fintech startup, was the subject of fraud accusations in Kenya months ago, that were later dropped. Since then, the fintech titan began processing and now acquired a payment processing license in Egypt.
Flutterwave can now accept and receive payments on behalf of its users in the country of North Africa thanks to the Payment Services Provider and Payment Facilitator licenses.
It will also debut its “Flutterwave for Business” service. As part of its Flutterwave 3.0 launch in 2022, Flutterwave for Business introduced fintech a service offering that enables third parties to integrate financial services into current products and gain access to loans and card issuance.
Read also: Flutterwave and Tobi Amusan Launch $end Mobile App for Easy Funds Transfer
Reasons Behind Egypt Selection
Since the COVID-19 pandemic compelled people to board the digital train, Egypt has seen an increase in the acceptance of digital payments, as have many other African nations. According to a 2022 Mastercard analysis, digital financial services are becoming more widely used in Egypt.
In the previous year, 88% of Egyptians utilized at least one digital payment service, according to the research.
Cash is still widely used, although compared to the global average of 61%, 64% of Egyptian users have expanded their use of digital payment methods. In addition, Mordor Intelligence forecasts that between 2022 and 2027, the mobile payments market would expand at a compound annual growth rate of 19%, even though Statista anticipates that Egypt’s total transaction volume will surpass $14 billion.
All of this suggests the potential for expansion, and Flutterwave is eager to seize them. At the same time, its presence in Egypt might act as a stepping stone for a Middle Eastern and North African expansion effort.
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.”
Flutterwave Recovers its Assets In Kenya After Being Cleared Of Charges
Following the Kenyan government’s decision to withdraw allegations of financial misconduct, African internet payment service company Flutterwave is expected to retrieve over $50 million in frozen currency. The money in 62 bank accounts belonging to the Fintech and four Kenyans were frozen after the Asset Recovery Agency (ARA) sued Flutterwave. Fears of card fraud and money laundering were the basis for the lawsuit, which Flutterwave vigorously rejected.
The Kenyan government, however, dropped these allegations against Flutterwave last week, and ARA has since filed a notice to dismiss the case and lift the asset-freezing orders. On February 14, the case will be discussed in front of the High Court, where the withdrawal decision will be affirmed.
Olugbenga Agboola, the company’s CEO and co-founder, traveled to Kenya last week to secure a license from the Central Bank of Kenya (CBK).
Flutterwave has refuted the accusations of financial wrongdoing and applauded the Kenyan government’s decision to drop the prosecution.
“Flutterwave welcomes the withdrawal of claims against the company by the Asset Recovery Agency (ARA) in July 2022 and looks forward to market expansion in Kenya. As a result, Flutterwave has been cleared of any wrongdoing. Flutterwave has fully cooperated with all stages of this review,” the company said in a statement on Thursday.
Flutterwave, a fintech startup with offices in Lagos and San Francisco that provides payments services to ease cross-border transactions in several currencies, is extremely relieved by the development. The business, which was previously valued at over $3 billion, has raised more than $450 million in venture capital funding and is getting ready to go public on the Nasdaq stock market.
Other Nigerian financial companies have benefited from the decision to dismiss the accusations against Flutterwave as well because their cases have been closed and their accounts have been unfrozen. In a series of financial misconduct actions brought by the ARA between 2020 and last year, the High Court ordered the freezing of the funds belonging to these firms.
Until a petition to have the money forfeited to the government was filed, the billions of dollars frozen in Guaranty Trust Bank (GTB), Equity, EcoBank, KCB, and Co-operative Bank accounts could not be transferred or withdrawn. The company and other impacted businesses are now prepared to regain access to their frozen assets as a result of the allegations against Flutterwave being withdrawn.
The dismissal of the lawsuit by the Kenyan government and the dropping of the charges against Flutterwave mark a key turning point for the African fintech industry. Flutterwave and other impacted businesses will be able to expand and keep offering vital financial services to companies operating in Africa thanks to the recovery of frozen assets. Thousands of employees in Kenya are supported by Flutterwave, including those Uber drivers, food vendors, and others who depend on the payment network for their daily revenue.
Their victory in court and new license acquisition in Egypt is a sign of greater things to come for Flutterwave. It only shows the seriousness of their desire to spread their coast to other African nations to promote safer and stress-free online payments.
