Africa’s Giant Fintech

African fintech firms are no longer just seeking global investment, they’re acquiring international players, reshaping payments, and putting the continent at the center of global financial innovation.

Three years ago, Africa offered the world bold innovations and tech talent but lacked the financial muscle to scale its startups, making it largely dependent on foreign capital for growth.

Today, the continent is flipping the script as more African startups show they are no longer content with being acquired to access global markets.

Instead, a number of them are now the acquirers, using their growing financial strength and deep understanding of their markets to expand beyond the continent and stake a claim in global tech hubs across Europe and the United States.

Recent acquisition of a UK-based card issuer Pillar by LemFi, a Nigerian-founded fintech is among the latest moves that were unimaginable just a few years ago.

LemFi Chief Executive Officer, Ridwan Olalere said the company is leveraging the opportunity to design a global infrastructure to remove financial borders for migrants.

“We are starting with credit cards in the UK designed specifically for immigrants. With over 2 million customers globally, Lemfi is reimagining the future of international payments for immigrants,” said Olalere in a LinkedIn post.

Olalere worked with Fintech Unicorns, Opay (as director of payment and operations) and Flutterwave (as a software developer) before founding LemFi in 2021.

The acquisition gives LemFi a Financial Conduct Authority (FCA) license and critical infrastructure to expand its remittance services between the UK, the US, and Africa spanning more than 20 markets.

LemFi can now bypass traditional regulatory bottlenecks and reduce its cost of customer acquisition in global markets, making remittances more seamless and affordable.

In 2022, MFS Africa purchased a U.S.-based company, Global Technology Partners (GTP) in a deal estimated at over US $30 million. This gave MFS Africa access to a robust prepaid card infrastructure that connects millions of mobile money users across the African continent.

As a result MFS Africa strengthened its global payments capabilities, making it the first pan-African fintech with an established presence in the United States.

Kenya founded Aza Finance, formerly BitPesa pioneered the trend long before it became a wave.

As an early mover in cross-border payments, the Kenyan company secured licenses in the UK and Spain, gaining a strong foothold in Europe and making itself a trusted link between African markets and global payments ecosystems.

In June, the company that started back in 2013 when fintech and crypto were beginning to take shape in Africa announced plans to be acquired by an Uruguayan-based Fintech, dLocal.

It affirmed its focus of easing cross-border payments on the continent through the power of technology will remain even after its acquisition, showing it will still have power to shape key decisions.

“Pending regulatory approval, we look forward to integrating our technology and our deep bench of senior-level experts with dLocal’s massive global platform to connect even more markets with these services,” said AZA Finance Founder Elizabeth Rossiello in a statement.

Over the last 11 years, the company said it has built ‘Africa’s largest and most efficient trading desk for both fiat and stablecoin foreign exchange – providing liquidity in African and G20 currencies to fintechs, businesses, banks, telcos, and NGOs across the globe.’

While Nigerian fintech giant Flutterwave is yet to announce any major acquisitions in the U.S. or Europe, it is pursuing aggressive global expansion by heavily investing in obtaining licenses in global markets.

According to its 2024 end-of-year report, Flutterwave’s global presence increased fourfold, with 48% of businesses on its platform now receiving payments from new geographic locations—a 12% increase from 2023.

In addition to expanding its operations to Rwanda, Ghana, Uganda, Zambia, and Mozambique, Flutterwave secured 31 additional Money Transfer Licenses in the U.S. and launched its Send App in all 49 states.

Flutterwave said it will strengthen its position in 2025 as the leading payment partner for both local and global enterprises.

“Part of this journey to sustainable growth also includes taking advantage of any suitable funding or acquisition opportunities when we identify them,” the company stated in the report.