PayPal has announced a partnership with Flutterwave users to allow its users anywhere in the world pay African merchants directly using their Flutterwave Store account.
This announcement comes barely a week after Flutterwave completed its Series C funding with a funding of $170 million. Pushing the value of the company to over $1 billion.
Through this partnership, African businesses and individuals can now connect with more than 377 million PayPal users globally and overcome the challenges presented by the highly fragmented and complex payment and banking infrastructure on the continent.
Prior to this partnership, PayPal’s full range of services were only accessible to 12 African countries. However, this agreement brings PayPal closer to over 50 countries where Flutterwave currently provides payment services.
The motivation behind this integration with PayPal is to fuel more e-commerce activity in Africa as stated by the CEO of the company, Olugbenga Agboola via his twitter page earlier today . He states“Since April 2020, when they launched Flutterwave Store, Flutterwave has channeled its energy and resources into enabling online sales for merchants and freelancers in markets where it operates”.
Until this partnership with Flutterwave, there has always been a one-sided relationship between PayPal and its Nigerian users, allowing them to transfer money to PayPal users outside Nigeria only.
The direct implication of this move is that African SMEs and Freelancers can now transact with the international market seamlessly, as they can now receive payments for their services directly without incurring extra costs.