Flutterwave, the leading fintech startup in Africa, has announced the closure of its virtual card service, Barter, which was launched in 2017. This decision comes as Flutterwave shifts its focus towards its enterprise and remittance business segments, marking a strategic move to concentrate on its core revenue drivers.
Over the past month, Flutterwave has advised Barter customers to withdraw their funds from the app as it prepares to discontinue the service. Explaining the rationale behind this decision, the fintech stated that it was based on a thorough analysis of market trends and evolving customer needs.
Flutterwave's decision to sunset Barter underscores its commitment to doubling down on proven winners and optimizing services for businesses and remittance solutions. According to insights shared by the company, while Barter accounted for only about 1% of its total transactions worth $2 billion, enterprise services emerged as its biggest revenue driver.
In contrast to Barter's relatively modest contribution, Flutterwave's remittance products, Send and Swap, are positioned to capture a significant market share in Africa's lucrative $54 billion remittance market. While the progress of these products remains undisclosed, Flutterwave's strategic pivot emphasizes its ambition to consolidate its position in key sectors.
Barter, upon its launch in 2017, was hailed as a pioneering solution, offering Nigerians the ability to make international payments through virtual cards. However, the product encountered challenges along the way, including significant downtime periods in 2022 due to updates from its card partner, Union54. Additionally, customers experienced issues such as platform downtime and card rejections by prominent merchants like Netflix, Facebook, PayPal, and Apple Music.
Despite its setbacks, Barter played a significant role in shaping the landscape of digital payments in Africa. As Flutterwave directs its focus towards enterprise and remittance solutions, the closure of Barter reflects the company's strategic realignment to better serve the evolving needs of its customers and capitalize on emerging market opportunities.
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