Microsoft and Flutterwave have entered into a five-year strategic technological partnership.
Flutterwave will develop its next-generation platform on Microsoft Azure as a result of the new partnership, with the intention of boosting payment innovation in Africa and, in turn, the expansion of small businesses all over the continent.
SME development and growth are essential to the success and development of Africa. According to current estimates, SMEs employ almost 90% of the continent’s workforce. Beyond creating jobs, these companies frequently lead the way in innovation by offering answers to some of Africa’s most serious societal problems.
Although startups and small enterprises form the backbone of the African economy, they must overcome significant challenges to survive. Five out of every seven SMEs in Africa, according to research from the African Union Development Agency, fail within their first year of operation. Similarly, around 54% of all new businesses fail during their first year in Africa.
Lack of access to financial services and the inability to do business effectively across local payment methods are major obstacles for both SMEs and startups. Around 90% of transactions in Africa still take place in cash, yet up to 50% of small businesses lack access to funding.
“To drive sustainable growth in Nigeria, small businesses need the ability to participate more actively in the local and even global marketplace. This begins with digital financial inclusion. If we want to build a more resilient country and ultimately a more prosperous continent, we must begin by giving these businesses the digital financial services they need, not just to survive, but to thrive,” says Ola Williams, Country Manager, Microsoft Nigeria.
The goal of Flutterwave has always been to link businesses to the global market while assisting them in overcoming obstacles related to access to financial services. It accomplishes this by supporting a wide variety of payment methods, such as credit cards (both local and international), mobile wallets, and wire transfers.
Flutterwave has actually made significant progress toward democratizing payments in Africa since its launch. The payments technology business now hopes to spur growth and further revolutionize payments for companies across Africa by working with Microsoft.
Flutterwave will be able to process high-volume payments at scale by moving away from its traditional infrastructure and onto Azure, delivering a seamless and secure payment experience for its customers. It also has the chance to scale its product offering to millions of retailers around the world with Azure OpenAI Service.
Olugbenga ‘GB’ Agboola, founder and CEO of Flutterwave, said on the partnership: “In our journey at Flutterwave, we’ve always strived to touch lives by simplifying payments and connecting dreams to opportunities. Today, as we join hands with Microsoft, it feels like a family reunion of visionaries and go-getters. The excitement in our team is palpable because this partnership isn’t just about transactions – it’s about transformation. We’re honored that Microsoft believes in our vision and trusts our capability. I am proud to say we’re not just dreaming of an inclusive digital Africa; we’re creating it.”
As part of the partnership, Flutterwave will also introduce its SMB finance-as-a-service offering along with other transactable products on Azure Marketplace, therefore expanding its market.
According to Lillian Barnard, president of Microsoft Africa, “Microsoft is committed to fast-tracking economic growth in Africa through the transformative power of technology – a key part of this involves making it possible for SMEs to acquire the digital financial tools and services they need to succeed. We believe greater access to technology and innovation holds the key to building thriving local businesses that will create stronger economies to enable a brighter future for all.”
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