FlutterWave, a Lagos-based fintech, has partnered with AliPay, a Chinese e-payment solution to foster digital payments between Africa and China.
What is FlutterWave?
Flutterwave is an online payment platform which primarily enables companies in Africa to pay other companies on the continent and abroad. It’s a B2B payment solution (business-to-business) whose core goal is to thrive in global payments. Flutterwave was founded in 2016, and has processed 1000 transactions worth $2.6 billion. It has its headquarters in San Francisco, while its operations are in Africa. Aside from having a previous partnership with Visa to launch of GetBarter designed to help individuals manage their payments and send money, however, Alipay is its recent partnership.
The Partnership with AliPay
Alipay, is Alibaba’s digital wallet and payments service platform. Currently, Alipay claims a global network of more than 1 billion active users. The large portion of Alipay’s network is in China, which means with the partnership Flutterwave has with it, allows its merchants to accept payments or install Alipay as a payment type.
The integration between FlutterWave and AliPay will capture payments activity around an estimated $200 billion in China-Africa Trade. Furthermore, FlutterWave will earn by charging its Standard 3.8% on international transactions.
Why this partnership matters?
The partnership would allow the Hangzhou-based firm the opportunity to expand its merchant network in Africa, and African Merchants and businesses expand globally.
- Partnerships between payment players from China and Africa have become increasingly common largely due to trade activity between the two regions, which hit $200 billion in value last year and is expected to grow even further.
- Established companies in China, a country at the forefront of digital payments adoption, are in a position to benefit from Africa’s burgeoning fintech sector and rapid digitalization of businesses.
- Existing Merchants using FlutterWave can expand their businesses to China, using Alipay as a payment platform to transact. Goods that African Merchants can export to China: Soybeans, Duty-free payments, Edible Vegetable Oil, Cereals and Cereal Flour.