Africa faces a number of economic challenges when it comes to providing financial services to its citizens. In this regard, the expansion of fintech firms across the continent has aided in reaching the continent’s local population, thereby improving the quality of financial services they receive. According to Techpoint Africa, the fintech industry accounted for 54% of startup investments in 2019.
Fintech exists to fill the gaps that traditional financial services have been unable to bridge. These Fintech firms can reach out to the unbanked and underbanked, bringing financial services to the people.
Fintech companies have emerged as significant actors in Africa’s financial-economic revolution, and many of them are worth keeping an eye on.
The 2022 Cross-Border Payments 100 list recognises the leading companies in cross-border payments worldwide, including publicly traded companies, startups and private companies. It covers companies operating across consumer money transfers and remittances, B2B payments, eCommerce companies, payment processors, crypto providers, etc.
Here are the 5 African fintech companies listed among the world’s Top 100 Cross-Border Payments Companies in 2022
Customer focus: Consumers, B2B Payments
Based in San Francisco, US, (*100*) Cash builds software programs to allow free and immediate peer-to-peer cross-border funds in Africa and Europe, in addition to options for companies and retailers to course online and in-store funds. In November 2021, the firm raised $150m in a Series C extension spherical and was given a $2bn valuation, taking it into unicorn territory.
Customer focus: SMEs, Large Enterprises, Fintechs
Flutterwave is a Nigerian fintech providing payment infrastructure for global merchants and payment service providers in Africa. In February, it saw its valuation grow to $3bn in a Series D funding round – more than triple its valuation twelve months earlier.
Customer focus: Merchants, SMEs, Financial Services
MFS Africa is a pan-African company that operates the continent’s largest digital payments gateway. In November 2021, The company raised $100 million in equity and debt financing. It connects over 250 merchant customers in over 35 African countries and 700 corridors.
Customer focus: Remittances
Mukuru offers cash collections and bank and mobile wallet top-up services, allowing people to send money to Africa from the rest of the world. It recently partnered with WorldRemit to become its remittances payout partner in territories where it has an established network.
Customer focus: Remittances
M-PESA is a mobile phone-based money transfer service founded by Vodafone and Safaricom. It allows more than 51 million customers in seven African countries to make cross-border payments using secure international transfers from their mobile phones. Every year, more than $314 billion in transactions are sent, with Kenya and Tanzania being the two largest markets.