Flutterwave, gains Nigerian banking license as lifetime payments top $50 billion

Flutterwave Inc., Africa’s most valuable technology unicorn, has taken a decisive step in reshaping digital finance on the continent. Led by Nigerian entrepreneur Olugbenga Agboola, the company recently secured a Nigerian license to operate as a national microlender, a milestone that comes just after it surpassed $50 billion in lifetime payments.

The license, obtained through Flutterwave’s acquisition of the open banking startup Mono in January, allows the fintech to hold customer deposits and issue loans directly, marking a shift from its previous reliance on partner banks for these services in its largest market.

“This is a new phase of life for Flutterwave,” Agboola said. “$50 billion has gone through our platform. That is not double-counting, and not one cent was retained. With this new license, money now stays in our platform. Margins get better. That’s the value of owning infrastructure.” Flutterwave Bank will operate as a subsidiary with its own board and leadership team, reflecting the company’s commitment to governance and operational rigor.

Mono integration reduces lending risk

The license positions Flutterwave to cross-sell banking products to existing clients, including Uber, Microsoft, and Netflix, using data from years of transactions and the open banking capabilities from Mono. Abdulhamid Hassan, Mono’s CEO, highlighted how the integration mitigates lending risk. “Lending is really big, but non-performing loans are the biggest issue for any lender. With Mono’s infrastructure, that would not be a headache for us,” he said.

Flutterwave now joins other Nigerian fintechs like Moniepoint, OPay, and PalmPay that hold banking licenses, but Agboola argues the company’s edge lies in its combination of a switching and processing license, an international money transfer operator license, Mono’s open banking infrastructure, and a payments network spanning 35 countries with over 50 global licenses.

“Imagine you can make anything your account number. You can sweep money from any bank in Nigeria to a Flutterwave Bank account. You can run your entire treasury infrastructure as a business, as a small business, as a large business, as a consumer, all through one platform,” he said. The license also changes Flutterwave’s relationship with commercial banks, moving from a risk-bearing partnership to a counterparty relationship, with accounts insured by the Nigeria Deposit Insurance Corporation.

Flutterwave growth, licenses, IPO focus

Flutterwave’s rapid growth has been reflected in its valuation, which rose from $1 billion to $3.2 billion between 2022 and 2024, alongside a 50 percent revenue increase in the first half of 2024. The company has expanded across East Africa, securing licenses in Ghana and Uganda, and strengthened cybersecurity partnerships with Nigeria’s EFCC.

Looking ahead, Agboola emphasized that Flutterwave’s IPO will only proceed once profitability is achieved, underscoring a focus on sustainable growth. “Charity begins at home. If we take care of the IPO, we will start from Nigeria first,” he said.

He also confirmed plans to pursue banking licenses in other African markets, envisioning Flutterwave as either Africa’s JP Morgan or a target for acquisition in the next decade. “One out of every three transactions in Africa should have something to do with Flutterwave,” Agboola said, signaling the long-term ambition to redefine financial infrastructure on the continent.