Visa, a world leader in digital payments, announced today that it is partnering with Flocash, selected by FT Africa as the fastest-growing fintech of 2022, to promote digital capabilities for African SMEs through digital payments, supplier solutions and access to financial services.
The first step in this partnership is the launch of Flostore, which is powered by a Visa digital wallet and the Flocash pan-African payment platform. Flostore, according to the announcement, can help small businesses accept digital payments, manage supplies and access financial services across Africa.
In addition to Flostore, Flocash and Visa will work together to embed financing in payments and bring the element of analytics, bookkeeping and reconciliation to small businesses through Visa’s dynamic underwriting capabilities that include buy-now-pay-later structures.
“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 an important step towards achieving this goal,” said Corine Mbiaketcha, VP and GM for East Africa at Visa.
“Flocash has grown significantly as a travel payments processor over the last few years, and we are thrilled to partner with them to build innovative payments solutions that reduce friction in commerce for merchants in East Africa,” Mbiaketcha added.
Flostore Tap2phone capabilities enable small businesses to turn their existing mobile devices into payment acceptance terminals.
Through digitization, 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.
Flocash says that 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 business respondents to Visa’s annual outlook survey in 2022 indicated a 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, MD 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.