Alibaba Group Holdings said it has appointed Nigeria’s Flutterwave as its African partner for its digital wallet, AliPay.
Flutterwave, a Nigerian payment software company handles payment between other companies on the continent and abroad.
Based on the terms of the agreement, Flutterwave will henceforth handle all AliPay payments between with the digital wallets and other merchants across Africa.
With over 1 billion active users, AliPay is a global payment giant which is now far ahead of PayPal according to Alibaba’s financial report for last year.
The partnership with Flutterwave will enable the Nigerian payment software company to have a major bite of the $200 billion China-Africa trade.
In his statement on the agreement, Flutterwave CEO Olugbenga Agboola said: “This means that all our merchants can accept or install Alipay as a payment type to accept payments from its billion users.”
Flutterwave is a privately funded startup with various fundraising done in recent years. In 2017, the company said it raised $10 mullion from venture capital firms including Green Visor.
Since its founding, Flutterwave disclosed that it has processed about 100 million transactions with a value of $2 billion. The company has major unicorns on his client list including ride-hailing giant, Uber Technologies Inc, Jumia Technologies as well as Booking.com.
However, Flutterwave will still need to increase its reach even within Nigeria. For instance, Nigerians in diaspora remit a minimum of $20 billion annually.