Flutterwave Eyes Banking: What Its Big Move Means for Businesses and Customers

What this shift means
1. Flutterwave has helped businesses processes payments through various means including bank transfers and digital payment methods.
Let’s say an online store wants to accept payments via its website but doesn’t want to develop a payment processing system. In this case, the online store can use Flutterwave.
But, payment processing is just one of the many financial services that people and businesses require.
Flutterwave wants to be a part of this. Flutterwave wants to provide financial services to customers beyond payment processing. Flutterwave wants to help its customers manage their money and provide services beyond payment processing.
Customers trust Flutterwave to process their payments. Because of this, Flutterwave thinks that customers will trust them to manage their money. This thinking is behind Flutterwave's plans to start a bank.

Why fintechs keep expanding beyond
payments

Flutterwave is not the only company doing this. Other FinTechs in Africa are interested in banking and other financial services. The interest in Financials is high due to a number of reasons:

Supplemental Streams of Income
One concern for companies who focus on payments is profitability. A payment company makes money through a transaction fee. However, a company may be unprofitable due to a low operating margin and high overhead costs.
For a payment company, profits are typically made by achieving high transaction volumes. As such, finding ways to make money beyond payments is a strategic way to increase overall company revenue.
3.If Flutterwave can deliver on its banking strategy then they will begin to see some changes. More ways to save and save money
They plan to offer services like saving and deposits.