In some African countries it is almost impossible for businesses to receive money from PayPal. While the paying company has not given a reason for not doing so, speculation indicates factors such as insufficient regulation and poor banking security in the said countries.
This may be a thing of the past for some businesses as an African payment company Pulsator Today announces collaboration with PayPal to allow PayPal customers globally to pay African merchants through its platform.
Through this partnership, businesses can connect with more There are 377 million PayPal accounts globally. And overcome the challenges presented by Excess Segmented and complex payment and banking infrastructure on the continent.
According to the CEO Allubenga ‘GB’ Agarbulla, This will be through a Flutterwave integration with PayPal, so merchants can add PayPal as a payment option when receiving money outside the continent. The company, which is already available to merchants with trade accounts registered on Flutterwave, will be operational in 50 African countries and worldwide, the company claims. Flutterwave hopes to roll out this service to individual merchants on the platform as well.
“In short, we’re bringing more than 300 million PayPal users to African businesses so they can accept payments across the continent,” he told TechCrunch. “Our mission at the company has always been to make payments easier for endless possibilities, and ever since we started, it has always been about international payments.. So despite having the largest payment structure in Africa, we want of course All important payment systems of the world on our platform“
A PayPal spokesperson confirmed Flutterwave’s collaboration with TechCrunch.
Since company Extend to africa, It maintained unilateral relations with most of the countries of the continent, allowing them only to send money. And according to its website, only 12 African countries can send and receive money on the platform, but to varying degrees. They include Algeria, Botswana, Egypt, Kenya, Lesotho, Malawi, Mauritius, Morocco, Mozambique, Senegal, Seychelles and South Africa..
In countries where luxury is not afforded to do so, users will have to rely on using A friend or family’s PayPal account is located in countries where payments can be made Be obtained. next, They request funds via bank transfer, which leads to higher costs or using other cross-border currency platforms such as WorldRemit.
This is a pain point for these businesses, especially in Nigeria. Paypal Finally reached Africa’s most populous country in 2014 and A. Years later, this company became Second largest market On the continent
But dSpying its rapid adoption rate and large fintech hunger, merchants still cannot get payment from various sources from other countries on the platform PayPal’s decision for the country’s history with Internet fraud.
Fraud or not, Nigeria’s e-commerce and large-scale continents are growing at a breathtaking pace. In 2017, Africa generated $ 16.5 billion in revenue, and by 2022, it is expected to reach $ 29 billion. With numbers like this, it’s not hard to see why Peeple wants to get into action, although not entirely. Hence, a partnership with Flutterwave.
The company, through its APIs, provides paid services to individuals and businesses across the continent. Since its launch in 2019, the African payments company has partnered With visa To launch barter; Alipay to offer digital payment Between Africa and China; And Worldpay FIS For payment in Africa.
But it’s peepal of course Its largest partnership or collaboration. Now, African businesses have greater access to sell to global customers, using PayPal to receive and send online payments.
In a way, Flutterwave absorbs most of the risk. PayPal feels that if it makes its platform more open to merchants in these countries, it will provoke it. But at the same time, it reinforces Flutterwave’s position in the eyes of multinationals looking to enter the African market..
Like when WorldPay partnered with FIS with its Series B funding, this announcement is also increasing. Last week, the payment company Closed the $ 170 million series Under the leadership of Avenir Growth Capital and Tiger Global, it became a billion dollar company in the process.
In Blindness, the vastness suggests that the company has few projects in the pipeline. According to this partnership, we can expect most of them to be Global drama.
Nevertheless, these questions are above the mind – What happens paypal Automatically Allows businesses from these neglected African countries to start receiving paymentsThe Will the two services co-exist when this happens? We reached out to PayPal for comment.
However, that plays out, it is a step forward in the right direction for Flutterwave, which has shown time and time again and is poised for its 290,000 merchants and an ongoing quest to become a global payments company.
“By working with PayPal, we can further strengthen our commitment to our customers and service users as we will enable them to grow and expand their business operations to reach new markets. The CEO stated that PayPal’s global reach is unmatched, and together with them allows our customers to explore new markets where PayPal is embedded.