Flutterwave, the renowned African payments company, has successfully secured a crucial license to facilitate international payments and remittances in Malawi, News About Nigeria reports.
The International Money Transfer Operator (IMTO) license, granted by the Reserve Bank of Malawi, positions Flutterwave to play a pivotal role in the country’s evolving financial landscape.
Malawi’s remittances market, constituting 2% of its GDP according to the World Bank, has witnessed exponential growth since 2016. Flutterwave, with a valuation of $3 billion, recognizes the immense potential presented by this expanding market. The license enables the fintech startup to process international payments from the Malawian diaspora, creating opportunities for over 200,000 Malawians residing abroad.
Flutterwave’s CEO, Olugbenga “GB” Agboola, expressed gratitude to the Reserve Bank of Malawi, stating, “We look forward to this amazing journey, delivering the best possible financial services to the people of Malawi.” The company will leverage its Send App, an international payments application relaunched in August, allowing users to transfer funds from over 34 countries worldwide, including the US, Canada, Egypt, and Sénégal.
With remittances into Malawi growing by 300% since 2016, Flutterwave’s entry comes at a crucial time. The country’s central bank recently devalued its currency by 30%, citing supply-demand imbalances and arbitrage opportunities. As approximately 28% of Malawi’s adult population contemplates relocating abroad, the demand for international remittances is expected to rise, offering Flutterwave a substantial market to navigate.
As Malawi issues new licenses to fintechs and companies entering the payments sector, Flutterwave anticipates competition but remains poised to make a significant impact on the country’s remittance landscape.
