- Following its recent introduction of Send App, a money transfer platform that enables cross-border transmission, Flutterwave has acquired money transfer licences for 13 US states.
- Per the company’s website, this move will ”enable faster, more affordable, and secure transfers of money from the United States to Africa and back.”
- State regulators issue money transfer licences to allow financial technology companies to engage in money transmission.
The 13 new transmission licences cover several states in the United States, including Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota.
This development, in addition to its partnership with another licenced financial institution, will see the company serve customers in 29 states in the United States and also enable platforms like Send App and other enterprises that use Flutterwave for final-stage payouts on a global scale.
Discussing this, the Executive Vice President, Global Expansion and Partnership at Flutterwave, Stephen Cheng, said that the licence acquisition expands the regulatory footprint of the company and also demonstrates the ability to “deliver services with safety and soundness, and fosters trust of regulators, partners, and customers.”
While reiterating that the payment platform is committed to servicing customer needs in “as many geographies as possible with significant African diaspora,” Cheng stated that the licences reflect a commitment to partner with regulators across various markets, adhering to their requirements, and ensuring the safety of customer funds.
Moreover, the Send App, formerly known as $end, was launched about a month ago when money transfers to Africa are said to have doubled, reaching $100 billion in 2022. After announcing the rebranding on August 2, 2023, the payment platform now supports transfers from the United States and Canada, with Senegal and Egypt as new recipient countries.
What does this mean for users and the fintech unicorn?
Cross-border payment is a process of financial transactions between individuals from different countries. This development by Flutterwave is a win-win for both the company and the users.
For the company, this will expand its reach to more destinations and ensure wide coverage for more states in the U.S. and beyond.
In the same way, users get to have multiple choices when engaging in global-scale money transfers. As of today, users can send and receive money from over 35 countries.
Meanwhile, in September 2023, Flutterwave got approval from the Reserve Bank of Malawi to operate as an International Money Transfer Operator (IMTO) in Malawi.
