Nigerian fintech unicorn Flutterwave, one of Africa’s leading payments technology companies, has gained approval from the Bank of Tanzania (BoT) to launch its payment services in the Republic of Tanzania.
The approval comes after the Bank of Tanzania conducted due diligence and Flutterwave satisfied all requirements necessary to receive a license to operate in the country.
With the approval, Flutterwave will open its offices in Dar Es Salaam, the Tanzanian capital, with the aim to drive connected digital payments and financial inclusion by enabling merchants and customers to trade efficiently through its platform across the country.
Flutterwave’s products and services will look to support Tanzanian SMEs in order for them to overcome challenges presented by the highly fragmented and complex payment and banking infrastructure.
“Tanzania has a flourishing SME industry across different business verticals e.g. tourism, and Flutterwave’s goal is to deploy products and services that enhance and enable small and medium-sized businesses in the country to transact and expand operations to reach new customers and global markets,” commented Olugbenga ‘GB’ Agboola, Founder and CEO of Flutterwave on the launch of Flutterwave operations in Tanzania
“We want to ensure that our solutions eliminate significant barriers that have previously hindered African consumers and businesses from the untapped potential of local and cross-border e-commerce. We are delighted to launch operations in Tanzania and excited for what the future holds,” he added.
E-Commerce Explodes in Tanzania
According to Statista, the transaction value of e-commerce in Tanzania is projected to reach $907-million in 2022 with expected users estimated at 14.2-million by 2025. The Bank of Tanzania has over the past few years developed regulations and policies necessary to see the growth of the payments ecosystem that aim to realize these goals.
In addition, Tanzania has the fourth-largest e-commerce consumer base in Africa with the number of online shoppers estimated at about 1.5-million according to the United Nations Conference on Trade and Development (UNCTAD).
However, this number remains low due to the sensitivity and complexity associated with payments services. Flutterwave says that it aims to not only provide a safe and secure payments gateway but also provide an additional opportunity for shoppers to discover businesses, transact simply and drive financial inclusion.
Flutterwave is set to provide key products and services that include Flutterwave for Business, Flutterwave Store, Flutterwave Market, Send by Flutterwave in addition to introducing customers to other payment partners such as Airtel Money, PayPal, and WorldPay.