Flutterwave, the leading fintech company in Africa, is partnering with Hedera, a public distributed ledger technology, to introduce crypto payments for African businesses. Through this collaboration, Flutterwave will enable merchants to collect and disburse funds using Circle-powered USDC wallets.

According to Iyembi Nkaza, who represented Flutterwave at the African Money and DeFi Summit (AMDS) in Accra earlier this week, this solution was developed to address the complexity of payments for African merchants and simplify the process. In Africa, there is a growing trend of stablecoins used for small retail payments, with the continent being responsible for the world’s highest proportion (80%) of crypto retail payments of less than $1000, according to a 2022 Chainalysis report. “At Flutterwave, we believe that simplifying payments is meeting people where they are,” Nkaza said during his presentation at AMDS.

The implementation of this solution is scheduled to commence in the first quarter of 2024. During the initial phase of the roll-out, merchants will have the ability to convert USDC to fiat currency. Subsequently, in the second phase, they will also be able to receive USDC as a form of payment. Furthermore, Iyembi Nkaza mentioned the potential for a similar partnership to support e-naira, the central bank digital currency (CBDC) of Nigeria, in the future.

Despite the significant contribution of foreign remittance, which accounts for up to 20% of the Gross Domestic Product (GDP) in certain African countries, the current process remains tedious and time-consuming. To address this challenge, Flutterwave is leveraging blockchain technology to streamline cross-border payments, making the process faster and more efficient.

The integration will allow users to seamlessly transact using decentralized digital currencies, providing benefits like faster settlement times, increased security, and reduced transaction fees. This move comes as digital assets continue to gain traction, with many businesses and individuals seeking alternative payment methods. By including crypto payments in its services, Flutterwave aims to cater to this growing demand and provide an efficient and convenient payment solution. Additionally, the collaboration with Hedera Hashgraph ensures a reliable and scalable infrastructure for seamless crypto transactions.

This strategic move comes as Flutterwave continues to expand its reach and partnerships. With a track record of processing over $25 billion in total payment volume and over 200 million transactions. The company has garnered the trust and partnership of renowned global merchants such as Netflix, Uber, Microsoft, and Meta. Additionally, Flutterwave has successfully secured a total funding of $450 million.

In recent months, Flutterwave has been on a trajectory of expanding its array of payment solutions. In July, it unveiled Tuition, a service designed to empower African students to pay their educational fees in local currencies to institutions both within Africa and abroad. This offering streamlines the payment process for students, enhancing convenience and accessibility.

Continuing on this path of innovation, Flutterwave recently partnered with the Central Bank of Nigeria (CBN) to launch Swap, a digital solution that provides Nigerians with instant access to foreign currency. This initiative aims to address the challenges faced by individuals seeking foreign currency for various transactions by providing a seamless and efficient method.

By embracing crypto payments, Flutterwave stays ahead of the curve, meeting the evolving needs of its customers in the digital age.