Flutterwave Obtains Payment License, Broadens Operations in Senegal
In a strategic move, African fintech giant Flutterwave has announced its entry into Senegal, following approval from the Bank of Central African States (BEAC) for a technical partnership with Ecobank and securing a payment institution license from the Central Bank of West African States (BCEAO). This expansion comes amidst a growing array of fintech competitors across the continent.
Founded in 2016, Flutterwave is yet to reach profitability, but its focus remains on building a profitable, resilient, and scalable business. The company, which has processed over 800 million payments, totaling $34 billion since its inception, operates in significant African markets such as Nigeria, Kenya, South Africa, and Egypt.
Flutterwave's expansion into Senegal places it in direct competition with local fintech players like Wave and Cauri Money. Wave, launched in Senegal in 2018, is known for its super-low-cost model offering free money transfers and very low withdrawal fees, disrupting the mobile money market there and prompting even the market leader Orange Money to reduce its prices. Cauri Money, another competitor, is actively vying for market share in Senegal.
The growth of the digital payments market in Africa is fueled by the rapid acceleration of digital transformation, driven by increased internet penetration and financial inclusion. According to projections, internet penetration in Africa is expected to grow at a compound annual rate of 20%, and financial inclusion is expected to rise by 6% annually. By 2030, the digital payments market in Africa is anticipated to reach $1.5 trillion, according to a 2025 report from Mastercard.
Rotimi Okungbaye, Head of Corporate Marketing at Flutterwave, expressed enthusiasm about offering payment solutions in Senegal. The African digital payments market is experiencing a significant increase in the number of fintech companies, with the number surging from 450 in 2020 to 1,263 by January 2024, according to the European Investment Bank (EIB). Notable competitors in the African digital payments space include OPay, Tyme Group, Chipper Cash, Interswitch, MNT-Halan, Moniepoint, and Wave.
Flutterwave has already expanded to Rwanda, Uganda, Zambia, and Mozambique in 2024, bringing its total number of countries served to approximately 35. Other prominent African fintechs, although not specifically in Senegal, include Raenest, which focuses on cross-border payments for freelancers and businesses, and Chipper Cash, known for fee-free peer-to-peer payments mainly in other markets.
As Flutterwave continues its expansion, it faces stiff competition from a growing number of fintech players. However, the company's commitment to building a profitable, resilient, and scalable business positions it well for the challenges ahead. The trends indicate a strong move toward digital transactions, as both businesses and consumers embrace contactless payment solutions.
- The entry of Flutterwave into Senegal signals a move towards financial inclusion as it competes with local fintech players, contributing to the growing digital payments market in Africa which is anticipated to reach $1.5 trillion by 2030.
- As technology continues to accelerate digital transformation, Flutterwave, with its focus on building a profitable, resilient, and scalable business, gains a competitive edge in the African fintech industry, offering payment solutions that align with the increasing trend of businesses and consumers adopting contactless payment solutions.
