Flutterwave, Nigeria’s payments technology firm has launched in Tanzania after gaining approval from the Bank of Tanzania (BoT), the country’s regulatory body for banks, microfinance institutions and payment service providers.
With the approval, Flutterwave will open its offices in Dar Es Salaam to drive connected digital payments and financial inclusion by enabling merchants and customers to trade efficiently through its platform across the country. Flutterwave’s products and services will look to support the about 95% of Tanzania’s SMEs that represent about 35% of the country’s GDP overcome challenges presented by the highly fragmented and complex payment and banking infrastructure.
In a statement, Olugbenga ‘GB’ Agboola, Founder and Chief Executive Officer of Flutterwave said,‘Tanzania has a flourishing SME industry across different business verticals e.g. tourism, and Flutterwave’s goal is to deploy products and services that enhance and enable small and medium-sized businesses in the country to transact and expand operations to reach new customers and global markets. We want to ensure that our solutions eliminate significant barriers that have previously hindered African consumers and businesses from the untapped potential of local and cross-border e-commerce. We are delighted to launch operations in Tanzania and excited for what the future holds.”
Flutterwave will provide key products and services that include Flutterwave for Business, Flutterwave Store, Flutterwave Market, Send by Flutterwave in addition to introducing customers to other payment partners such as Airtel Money, PayPal, and WorldPay.
In February, Flutterwave raised $250 million in a Series D round tripling its valuation to over $3 billion, just a few months after it raised $170 million in a Series C round from Tiger Global and Avenir at a $1 billion valuation.
The launch in Tanzania makes the fintech available in Nigeria, Ghana, Rwanda, Uganda, Kenya, Ivory Coast, Cameroon among others as listed below.
In March last year, Flutterwave partnered with PayPal to enable PayPal customers globally to pay African merchants in the continent through Flutterwave’s platform. The collaboration enables SMEs and freelancers to overcome the many challenges presented by the highly fragmented and complex payment and banking infrastructure, as well as connecting them with more than 377 million PayPal account holders globally. The deal also gives Flutterwave’s customers in these markets entry into into new markets, to serve their new and existing customers, among others.
Speaking on the announcement, Olugbenga ‘GB’ Agboola, Founder and Chief Executive Officer of Flutterwave, said: “By working with PayPal, we can further strengthen our commitment to our customers and service users as we will be enabling them to transact and expand their business operations to reach new markets. PayPal’s global reach is unrivalled and collaborating with them allows our customers to explore new markets where PayPal is embedded.
“Through our collaboration with PayPal, we are also bringing together two trusted global payment brands to provide millions of consumers and businesses a gateway to new opportunities,” he added.
Since inception, Flutterwave has processed over 140 million transactions worth over USD $9 billion worldwide and continues to expand its footprint to ensure consumers and merchants receive the best-in-class digital payment service. This collaboration further underscores its commitment to ensuring merchants have vast opportunities to deliver services and conveniently transact through its platform. The service is now live and the integration with PayPal will be operational across 50 African countries and worldwide.
According to Statista, the transaction value of e-commerce in Tanzania is projected to reach $907m in 2022 with expected users estimated at 14.2m by 2025. The Bank of Tanzania has over the past few years developed regulations and policies necessary to see the growth of the payments ecosystem that aim to realize these goals. The introduction of Flutterwave in Tanzania will enhance the country’s ambition to elevate digital commerce, offering flexible, seamless, and affordable payment services to individuals and businesses.
In addition, Tanzania has the fourth-largest e-commerce consumer base in Africa with the number of online shoppers estimated at about 1.5 million according to the United Nations Conference on Trade and Development (UNCTAD). However, this number remains low due to the sensitivity and complexity associated with payments services. Flutterwave aims to not only provide a safe and secure payments gateway but also provide an additional opportunity for shoppers to discover businesses, transact simply and drive financial inclusion.
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