PayPal, Flutterwave Deal Targets African Market

Flutterwave is collaborating with PayPal so that PayPal customers can pay African merchants through the financial technology (FinTech) startup’s platform, Reuters reported. The move means that small and medium-size businesses (SMBs) can more easily connect with the more than 377 million PayPal account holders globally.

Flutterwave said the new arrangement will eliminate a barrier to cross-border commerce, while involving 50 countries. Both Flutterwave and San Jose-based PayPal have benefited from the boom in eCommerce during the pandemic.

Now headquartered in San Francisco, FinTech Flutterwave was founded in 2016 by Nigerians.

Flutterwave said it is positioning to be an African payment platform for multinationals entering new markets. CEO and Co-Founder Olugbenga Agboola told Reuters that Flutterwave could consider a New York stock listing.

That comment comes after Flutterwave raised $170 million in a venture round this month (March 10), bringing its total fundraising to $225 million since its launch five years ago. This latest round for Flutterwave was led by Avenir Growth Capital and Tiger Global Management, according to a press release.

The company said the new funding will help it advance its goal of becoming Africa’s top payments firm. Flutterwave said it will use the funding to increase its customer base and offer new products. The company recently introduced a mobile app to expand eCommerce activity that stems from its Flutterwave Stores.

The latest round follows Flutterwave teaming up with Visa and Worldpay last year.

Last year, Flutterwave launched an online portal to enable African businesses to set up online shops. At the time, the company said it would focus on making it easier for African businesses to make payments to other companies, both on the continent and elsewhere.

The company said then that the Flutterwave Stores would not warehouse its customers’ wares, and would focus on helping SMBs find clients. Flutterwave planned to charge SMBs based on actual payments.