In an exciting development, Flutterwave, a Pan-African fintech startup, has successfully obtained an International Money Transfer Operator (IMTO) licence from the Reserve Bank of Malawi. This licence empowers Flutterwave to facilitate international remittances through its Send App.
The Send App, accessible from around 30 countries, including the United States and Canada, allows users to seamlessly send funds globally. Flutterwave’s co-founder and CEO, Olugbenga Agboola, emphasised the company’s commitment to customer satisfaction, stating, “This expansion spotlights our dedication to customer satisfaction as we bring the world closer to their fingertips.”
Malawi, with approximately 200,000 citizens living abroad, anticipates a 7.21% growth in its digital remittances market by 2027, reaching a market volume of $446.20k with around 4,200 users. Agboola expressed gratitude to the Reserve Bank of Malawi, stating: “We look forward to this remarkable journey and we remain committed to delivering the best possible financial services to the people of Malawi.”
This achievement aligns with Flutterwave’s broader strategy in the remittance sector across the continent. Earlier this year, the fintech company acquired licences in Rwanda and partnered with IndusInd, the sixth-largest bank in India, to enhance its Send App.
Despite the increasing importance of remittances in Africa, the World Bank reports that sending money to the region remains more expensive than to any other part of the world, with an average cost of 8.0% for a $200 transfer in the last quarter of 2022.
Flutterwave’s success in Malawi adds momentum to the ongoing efforts by various fintech solutions like AfriChange, NALA, and Kuda to provide Africans with more affordable options for remittance transactions, addressing challenges faced by the diaspora in accessing financial services.