Flutterwave secures Nigerian Banking Licence

Flutterwave has secured a national microfinance banking licence in Nigeria, allowing it to hold customer deposits and issue loans directly in its largest market.

The licence aids the payments company to enter a new sector after spending a decade facilitating transactions for businesses and consumers. It now positions itself to operate more directly within the financial system and expand into full banking services.

The company said the licence enables it to manage funds internally, reducing reliance on partner banks for settlement, virtual accounts and card issuance. This is expected to improve efficiency and margins while accelerating product development.

“This milestone allows us to make our infrastructure more efficient and deliver faster, more reliable financial services,” Chief Executive Officer Olugbenga Agboola said.

The licence was obtained through Flutterwave’s acquisition of open banking startup Mono earlier this year. Flutterwave has since injected additional capital to strengthen the bank’s operations, according to the company.

Operating as a subsidiary, the new bank will have its own board and leadership team, with governance structures being put in place.

The development comes as Nigeria’s central bank tightens licensing rules for fintechs with nationwide operations. Acquiring a microfinance bank has emerged as a faster route to regulatory approval and product expansion.

Flutterwave said the licence allows it to internalise key parts of its financial value chain. Historically, fintechs have relied on sponsor banks to access payment infrastructure, often sharing transaction revenue.

“With this new phase of life, money now stays in our platform. Margins get better,” Agboola said.

The company processes payments for global firms including Uber, Microsoft and Netflix. It plans to leverage this base to offer banking products, including accounts, lending, payroll and treasury services.

Flutterwave also intends to expand its consumer offering through its Send App, while scaling business banking tools for merchants. It is exploring additional products such as merchant lending, backed by transaction data and open banking infrastructure.

The company has processed more than $40 billion in payments and over one billion transactions to date. It is also exploring technologies such as stablecoin-based settlements to improve cross-border payments.

Analysts say the move could improve Flutterwave’s unit economics and support its longer-term plans, including a potential initial public offering.