Following the recent acquisition of payment licenses in Ghana and Mozambique, Flutterwave, African payments giant, continues its aggressive expansion across the continent by securing a Payment Systems Operator (PSO) license from the Bank of Uganda.

This development marks a milestone for the fintech unicorn which is eyeing a public listing, adding Uganda to its growing list of operational countries.

Strategic Importance of the Uganda License

Uganda, with its rapidly growing digital economy, represents a strategic market for Flutterwave. The country’s digital landscape is thriving, driven by increasing internet penetration and widespread mobile phone usage. 

According to recent data from DataReportal, internet penetration in Uganda has grown by 10.3% over the past year, with over 27% of the population now connected​​. Additionally, Uganda boasts one of the highest mobile money adoption rates in Africa, with over 54% of the population owning a mobile money account per Statista.

With the PSO license, Flutterwave is poised to tap into this promising market, offering a range of tailored payment solutions to the growing digital population in the country.

Potential Benefits for Ugandan Businesses and Individuals

For Ugandan businesses, the PSO license is expected to open up access to advanced payment solutions that allow businesses to collect payments in their preferred methods, including mobile money, bank transfers, or card payments. 

Flutterwave claims this will help businesses easily make single and bulk payouts to suppliers, employees, and partners, simplifying their financial operations. The integration of these payment solutions into platforms like Flutterwave for Business and SendApp is also expected to further enhance the ease of doing business in Uganda, offering a seamless experience for both local and international transactions.

Supporting Remittances and Financial Inclusion

The PSO license also allows Flutterwave to collaborate with other licensed operators to offer efficient and cost-effective remittance services. 

With Uganda being one of Africa’s top recipients of remittance inflows, receiving approximately USD 1.1 B in 2021 and with over 874,000 Ugandans living abroad — as reported by Uganda’s National Financial Inclusion Strategy, Flutterwave’s services are expected to further boost remittances from Ugandans in the diaspora, making it easier for them to send money to their loved ones back home.

Overall, Uganda’s evolving digital landscape and growing middle class provide an ideal environment for Flutterwave’s expansion. Securing the PSO license positions the company to tap into this potential and strengthen its presence in Uganda’s digital payments ecosystem.