African payments technology company Flutterwave has obtained a Nigerian banking licence. This license enables the company to hold funds and deposits directly, thereby enabling more efficient financial services and settlement flows for consumers, businesses and enterprises.
According to the FinTech unicorn, historically, global payment companies have operated through a “sponsorship” model, partnering with established commercial banks to access national clearing and settlement systems.
Although this arrangement is common, it has notable limitations. It often restricts a FinTech’s pace of innovation and requires them to share a portion of the transaction value with the sponsoring institution.
With a banking licence, Flutterwave claims to gain greater control over how funds move within its ecosystem, including the ability to hold deposits and manage financial flows across its platform. While Flutterwave will maintain close collaboration with banking partners throughout the broader financial ecosystem, the license allows the company to internalise vital parts of its financial value chain. This enhances operational efficiency and accelerates product development.
Olugbenga Agboola, Founder and CEO of Flutterwave, said, “This milestone allows us to make our infrastructure more efficient and deliver faster, more reliable financial services. By operating directly within the financial system, we can streamline money movement, accelerate settlement for merchants, and build products that support sustainable long-term growth.”
Founded in 2016, Flutterwave is a payments technology company that helps businesses operate across Africa and other emerging markets through a single API. It supports both local and cross-border transactions across 34 African countries. Its remittance solution, Send App by Flutterwave, also facilitates cross-border transactions from the diaspora to African countries.
The company processes payments via multiple payment modes, including local and international cards, mobile wallets, bank transfers, and Google Pay. In terms of security features, Flutterwave states that it features PCI DSS Level 1 certification, SOC 1 and SOC 2 compliance, and enterprise-grade fraud protection.
According to Flutterwave, this license enables it to introduce the same infrastructure into a new generation of banking tailored for Consumer Financial Services, including accounts, transfers, and payments for everyday users within the SendApp ecosystem. It also supports Business Financial Tools such as accounts, payouts, payroll, and multi-currency functions for businesses of all sizes, along with Enterprise Treasury Infrastructure for managing complex financial operations, treasury, and liquidity. Additionally, it covers Digital Platforms that embed financial services for marketplaces and platform operators, and Developers, who can utilise programmable financial infrastructure via APIs to create new financial products.
It claims that a banking license enhances its core payments business by allowing the company to optimise settlement flows and manage funds more efficiently within its ecosystem.
For SendApp users, the company said the move will allow over a million users to access enhanced financial services, including personal account numbers and instant transfers, without switching apps.
For businesses, Flutterwave said over two million businesses can now open accounts, manage payouts, run payroll, and access multi-currency capabilities.
The company also said it plans to introduce data-driven financial services, including working capital financing and merchant lending powered by real transaction data, alongside treasury and savings products.
The license acquisition comes after Flutterwave acquired Mono, a company that helps businesses access financial data. With such developments, the company aims to reduce how much it relies on third parties for critical parts of its operations. In 2021, the company secured USD $170 million in Series C funding and hit unicorn status.
Flutterwave has also mentioned that it is exploring stablecoin-enabled settlement to further improve global payment efficiency and connect African businesses to the global economy.
The platform accepts multiple payment methods, including bank transfers, mobile wallets, and international cards. To date, the company has processed more than one billion unique transactions valued at over $40 billion. It caters to global and African customers, including Uber, Air Peace, Bamboo, PiggyVest, and others across various industries.
