Flutterwave, Africa’s foremost fintech giant, has announced the cessation of its Barter virtual card service, signalling a strategic shift towards consolidating its enterprise and remittance business segments. Over the past month, fintech has advised customers to withdraw their funds from the Barter app as it redirects its focus to high-growth areas.
Market Analysis and Customer Need
In a statement shared with newsmen, Flutterwave explains that a thorough analysis of market trends and evolving customer demands informed the decision to sunset Barter. Committed to meeting the dynamic needs of its user base, Flutterwave aims to optimise its service offerings to align with emerging market opportunities.
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Emphasis on Enterprise and Remittance
Flutterwave’s strategic pivot underscores its dedication to prioritising proven revenue drivers. The leading African fintech has identified enterprise services as its primary revenue generator. By reallocating resources away from Barter, which constituted a mere 1% of its transaction volume, Flutterwave aims to capitalise on the burgeoning remittance market and enhance its enterprise solutions.
Flutterwave’s remittance products, Send and Swap, are poised to capture a significant share of Africa’s $54 billion remittance market. While the extent of progress with these products remains undisclosed, Flutterwave remains optimistic about its potential to address the growing demand for reliable and efficient remittance solutions across the continent.
Barter’s Evolution and Challenges
Upon its launch in 2017, Barter was lauded as a pioneering solution for international payments in Nigeria. However, the product faced its fair share of setbacks. Despite leveraging Flutterwave’s virtual card API and platform, the product encountered operational challenges, including prolonged unavailability in 2022 due to updates from the company’s card partner, Union54. Customers also reported downtime issues and card rejections by prominent merchants like Netflix, Facebook, and Apple Music.
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Strategic Realignment for Future Growth
Flutterwave’s decision to sunset Barter underscores its commitment to strategic realignment and sustainable growth. By prioritising enterprise services and remittance solutions, fintech aims to consolidate its position as a leading player in Africa’s burgeoning fintech landscape while addressing the evolving needs of its diverse user base.
As Flutterwave navigates the dynamic fintech landscape, its strategic focus on enterprise and remittance segments reflects a forward-thinking approach to innovation and market adaptation. Flutterwave reaffirms its commitment to driving financial inclusion and unlocking economic opportunities across Africa by sunsetting Barter and reallocating resources to high-potential areas.