For companies moving from regional to global, the challenge of entering new markets is massive. But Flutterwave, the Nigeria-based financial technology company, has accomplished the feat.
While rapid mass adoption is often the case with some areas of technology, many people feel reluctant to transfer their money through a new app or share their bank account details with a business they’ve never used before. That makes fintech, which often involves sharing private financial data, a tougher sell for new users.
Taking this into account, Flutterwave’s success in Africa, Europe, and North America, is impressive. Corporations, small businesses, and individuals use the company’s services, not only in its home country, but in places with vastly different cultures and expectations.
So, how did a financial technology startup from Africa manage to engage users across the world?
On the Ground with Flutterwave
One way the company keeps a finger on the pulse of any new market is by building a physical presence in an area before launching a new product. Flutterwave’s typical entrance into a new market is usually preceded by a monthslong residency, during which an office is established, veteran employees move to the region, and local talents are hired.
The strategy has a variety of benefits. It’s much easier to understand the nuances of a culture from an up-close perspective. Even with modern monitoring capabilities and data-gathering tools, launching a new product in a new country has a much greater likelihood of success if decision-making workers from the company are there to push it along.
By moving company workers near prospective customers, Flutterwave also encourages its employees to understand the culture from the ground up. Many firms rely on advanced statistics to explain the psychographic profiles of new markets. Flutterwave’s success demonstrates that people are more than the numbers that govern their lives.
Being close to consumers gives Flutterwave the ability to know which products are likely to catch on with a population. Even countries that are close together physically often have vastly different norms when it comes to payments, according to Flutterwave founder and CEO Olugbenga “GB” Agboola.
“Mobile money is very important, especially for the markets of Africa. And one fun fact is that it is increasingly popular in some regions, but it’s not popular in other regions. For example, it’s very popular in Ghana. It’s not as popular in Nigeria, but it’s growing,” he said. “So, there’s growth happening on mobile money and it’s going to be very strategic in the future.”
A presence on the ground in new markets also means easier access to meetings with regulators and in-country banks who can help Flutterwave navigate the financial rules and cultural norms of the area.
Finding the Right Fit
The same is true for new projects and partnerships. Instead of adhering to the growth-at-all-costs ethos that often governs many technology startups, Flutterwave opts for a more strategic approach in choosing partnerships and launching new products. The company determines its next direction for growth based on the value it can add to other businesses or bring to consumers.
For example, Flutterwave partners with the International Air Transport Association, allowing customers of airlines across the globe to use Flutterwave’s platform to pay for tickets or other airline services. This has opened up travel for people in Africa who use a local currency or methods of payment that are typically not accepted by air travel companies.
“According to the International Air Transport Association, Africa is set to become one of the fastest growing aviation regions in the next 20 years with an annual expansion of nearly 5%. How can we further accelerate this growth? One way is to ensure airlines can easily set up operations across the continent and seamlessly receive payments from their customers,” Flutterwave’s Agboola said. “This partnership with IATA solves the problem of payments for global airlines venturing into Africa. We hope that this encourages more global airlines to expand into Africa.”
Know the Audience
At each stage of its development, Flutterwave engaged new customers by building on earlier successes.
Initially, the company worked with enterprise clients in Africa, then used that experience to sell its services to smaller businesses on the continent.
Flutterwave then turned its attention to individuals, using the trust it had earned from local merchants to appeal to users who had, in many cases, never had a bank account. Finally, it used the knowledge it gained from those interactions to engage customers overseas.
In many ways, Send by Flutterwave’s recent expansion across 49 U.S. states is a direct result of the experience the company gained by onboarding new users across the world. By using a steady approach to engaging new customers, Flutterwave has set itself up for long-term success.
