African merchants will soon receive payments from anywhere in the world thanks to a new partnership between Flutterwave and PayPal Holdings Inc (NASDAQ:PYPL). Following the partnership, PayPal users will see “Pay with PayPal” on a Flutterwave merchant’s checkout page.
A big boost to Africa’s e-commerce
The new partnership is expected to be a big boost to the e-commerce industry in Africa. The industry has largely lagged, with one of the key barriers being lack of suitable payment solutions to connect the continent to seamless transactions worldwide. The two payment giants intend to use the new deal to eliminate payment barriers and open up the African market to cross-border eCommerce’s untapped potential.
The partnership will especially benefit SMEs and freelancers who have to navigate complex payment systems worldwide. Through the new collaboration, the two companies intend to connect African merchants and SMEs to more than 377 million PayPal users worldwide.
Offering quick, flexible payment solutions
Flutterwave is a leading player in Africa’s payment industry and offers quick, flexible, and affordable payment solutions to individuals and small businesses in Africa. Following the new partnership with PayPal, African businesses will be able to sell in the global market using the company’s online platform to make and receive payments.
Africa’s e-commerce has been on a steady rise in recent years and has been unlocking many growth opportunities in the continent. Africa’s e-commerce industry was valued at $16.5 billion in 2017 and is expected to grow to $29 billion by 2022.
PayPal was founded in 1998 and was one of the pioneers in the online payment industry. The company has around 377 million users in 200 countries. The payment giant reported $936 billion in payment volume in 2020.
A statement released by Flutterwave says customers from 50 countries will be able to transact through PayPal. This means freelancers and small business owners in countries like Kenya, Nigeria, Senegal, South Africa, Morocco, Malawi, and Mozambique will access PayPal services through the partnership.
The announcement comes just a week after Flutterwave announced a $170 million Series C financing round, which puts it in an even stronger financial position.