Fintech Flocash partners Visa to advance digital capabilities for African SMEs

Fintech Flocash partners Visa to advance digital capabilities for African SMEs
Corine Mbiaketcha, Vice President and General Manager for East Africa at Visa and Sirak Mussie, Managing Director of Flocash

Digital payments services provider Visa, has announced a partnership with Kenyan fintech Flocash, to promote digital capabilities for African SMEs through digital payments, supplier solutions and access to financial services. 

According to a statement, the two companies will first launch Flostore, powered by a Visa digital wallet and the Flocash payment platform, which can help small businesses accept digital payments, manage supplies and access financial services across Africa.

Visa and Flocash will also work on embedding financing in payments, and bring the element of analytics, bookkeeping and reconciliation for small businesses through Visa’s dynamic underwriting capabilities that includes buy now pay later structures, adds the statement.

Corine Mbiaketcha, Vice President and General Manager for East Africa at Visa said, “Visa is committed to expanding the digitization of payments across Africa. With partners like Flocash, our goal is to enable African businesses to access our payments ecosystem and technologies to enable them to innovatively and efficiently serve their customers. This partnership with Flocash, as well as the launch of Flostore, are important step towards achieving this goal.”

Flostore Tap2phone capabilities enables small businesses to turn their existing mobile devices into payment acceptance terminals. Tap2phone is essential and a cost-effective mechanism for developing digital payment infrastructure in developing markets.

Through digitization, African SMEs can use their digital footprint to tap into both traditional and alternative sources of funding to expand commerce while banks lower operating costs as they increase their revenue base.

Digitization of the lending process enables banks to streamline their inefficient processes for SME lending and deliver value to their customers. 82% of small and micro businesses respondents to Visa’s annual outlook survey in 2022 indicated preference for digital payment options.

“Visa is a great partner to scale Flocash’s pan-African payment platform and develop this critical area of African commerce that can offer enormous continent-wide economic development opportunities,” said Sirak Mussie, Managing Director of Flocash.

SMEs account for 90% of all businesses in Africa but have an annual financing gap of over US $136 billion according to IFC. A digitized SME sector will unlock the huge market potential of the African continent underpinned by rapid population growth, concludes the statement.