Flutterwave, one of Africa’s foremost payment companies, has achieved a significant milestone by securing a payment aggregator license in principle for Mozambique. This high-profile license is a game-changer for e-commerce merchants, as it allows them to accept various payment instruments online without the necessity of developing their own systems.
The approval of this license stands to greatly benefit global enterprises and merchants, enabling them to expand their businesses to Mozambique, accept payments, and cater to their Mozambican customers, thus broadening their market reach.
“Our goal is to empower local businesses and open doors for global enterprises across all industries by providing them with a secure and convenient payment solution that drives inclusive growth,” said Flutterwave CEO Olugbenga Agboola in a statement seen by Techmoonshot. This move is a testament to Flutterwave’s commitment to fostering economic development and supporting the financial infrastructure in Mozambique and beyond.
However, this expansion comes amidst recent security challenges for the company. Earlier this month, Techmoonshot reported that Flutterwave experienced a security breach that enabled unauthorized actors to divert ₦11 billion ($7 million) to several bank accounts. While Flutterwave assured that “no customer funds were lost or compromised,” this incident continues a troubling pattern of security breaches over the past fourteen months.
Read also: Flutterwave suffers ₦11 billion loss in cyberattack.
For instance, in October 2023, POS merchants illegally transferred approximately ₦19 billion ($24 million) through unauthorized transactions, affecting over 6,000 accounts. These incidents highlight ongoing concerns about Flutterwave’s internal security protocols, especially as the company continues to scale its operations across Africa.
Making Inroads in East Africa
Despite these challenges, Flutterwave’s recent expansion to Malawi and now Mozambique underscores its determination to support the rapidly growing financial landscape in southeastern Africa. Mozambique, projected to process over $9 billion in e-payments by 2028—growing at an annual rate of 15.28%—is a strategic market for Flutterwave’s expansion.
The license approval-in-principle signals Flutterwave’s readiness to meet the evolving payment needs of individuals and businesses in Mozambique. Agboola emphasized this commitment by stating, “As individuals’ and businesses’ payment needs evolve across the country, we are ready to leverage our technology, extensive industry experience, and comprehensive solution to meet their diverse payment needs.”
Flutterwave aims to democratize payment access for businesses looking to establish a presence in Mozambique. By enabling these businesses to leverage their extensive network of global partnerships, multiple licenses, and infrastructural reach, Flutterwave is making it significantly easier for them to conduct operations in the southeast African region.
This strategic expansion not only enhances Flutterwave’s position as a leading payment solutions provider in Africa but also supports the broader goal of fostering inclusive economic growth and financial accessibility across the continent.
