Flutterwave, an African fintech giant and Ripple Labs ally, has secured the International Money Transfer Operator (IMTO) license in Malawi.
Flutterwave secured the license from the Reserve Bank of Malawi and became effective in October. Marked as a major milestone for the company, the license will help Flutterwave power the Malawian remittance ecosystem.
Taking Payments Beyond Borders
There is a high expectation for remittances to grow in the coming years, with the 2023 growth rate projected to hit 1.3%. Considering how millions of Malawians now live and work abroad, Flutterwave will get its hands full in helping individuals channel funds back home.
Over the years, Flutterwave, through its alliance with key partners like Ripple, has developed Send App, its cross-border platform. With Send App, Malawians will get different benefits ranging from exchange rates better than the industry average, swift monetary transfers, and a mobile and web interface designed for the customer’s ease of use.
The remittance solution Flutterwave is offering will feature accessibility to 150 currencies. Users will transact on platforms with high-security grading, lending additional safety for users across the board.
When accessing state-of-the-art remittance services, Malawians are getting the best of deals, considering one of Ripple’s new allies, Onafriq, also operates in the country.
Benefits for Ripple
Though not expressly stated, Ripple has much to gain as Flutterwave deepens its foothold in Malawi. Both firm’s partnership dates back to 2018 when Flutterwave announced it had integrated Ripple’s blockchain network.
When the partnership became public knowledge, Flutterwave said it ranked as the only technology rail in Africa in alliance with Ripple. It then revealed that it integrated Ripple’s xCurrent instance, which helps banks and fintech firms process global payments efficiently.
With Ripple playing a background role in Flutterwave’s payment infrastructure, it has a lot to benefit in the long term. Ripple is charting a massive expansionary drive that has seen it enter strategic partnerships with new players, including Tranglo, Onafriq, and RocketFuel.