African fintech giant Flutterwave is discontinuing its consumer virtual card service, Barter, to prioritise its enterprise and remittance business segments. Over the past month, customers received in-app notifications to withdraw their funds.
Flutterwave cites market trends and evolving customer needs as the driving force behind the decision. The company aims to leverage its proven success in enterprise services and remittance solutions. Enterprise services account for most of Flutterwave’s revenue, while Barter contributed only a tiny fraction of total transactions.
Flutterwave’s remittance products, Send and Swap, target a slice of Africa’s massive $54 billion remittance market. The article acknowledges the lack of clear information regarding the current success of these products.
Barter launched in 2017 as a pioneering platform allowing Nigerians to make international payments. However, the service encountered challenges. In 2022, a weeks-long outage stemmed from an update by Barter’s card partner, Union54, which faced a significant fraud attempt. Additionally, customers reported frequent downtime and card rejections from major merchants.
While Barter’s closure marks the end of an era for some Nigerian consumers, it signifies Flutterwave’s strategic shift towards more lucrative business segments. The company aims to capitalise on its established enterprise solutions and remittance strengths, potentially leaving a more significant mark on the African financial landscape.
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