In a major consolidation of Africa's financial technology infrastructure, Flutterwave, the continent's most valuable startup, has acquired open banking platform Mono in an all-stock deal valued between $25 million and $40 million. The acquisition, the first of its kind in Africa in 2026, is a strategic move by Flutterwave to control the financial data layer behind payments and evolve from a payment processor into a comprehensive financial services provider.

A Strategic Vertical Integration

The deal represents a significant vertical integration, merging the data and settlement layers within the African digital payments market. Flutterwave aims to absorb Mono's API-driven platform to manage identity verification, financial data access, and account-to-account (A2A) payments into a single product. Under the agreement, Mono will remain an independent unit, with CEO Abdulhamid Hassan retaining control of day-to-day operations and technical autonomy, while gaining access to Flutterwave's extensive licenses and footprint across more than 30 countries.

"Payments, data, and trust cannot exist in silos," said Flutterwave CEO Olugbenga 'GB' Agboola in a statement. "Taking this approach simplifies typical compliance-heavy processes, such as bank verification and identity checks, which have historically been bottlenecks in onboarding SMEs at scale."

Betting on a Post-Card Future

The acquisition is a calculated defense against the high costs and failure rates associated with traditional international card networks like Visa and Mastercard in Africa. These networks often involve multiple intermediaries and can suffer from settlement delays exceeding 48 hours. Mono's infrastructure facilitates direct, near-instant account-to-account transfers on local rails. By using Mono's open banking APIs, Flutterwave plans to bypass these hurdles, reducing friction and cost for merchants.

Data as the New Collateral

For Flutterwave, owning the financial data behind transactions is a gateway to new services. The company can leverage this data to move into credit-related offerings, risk scoring, and enhanced identity verification. At the time of the deal, Mono had enabled over 8 million bank account linkages in Nigeria alone—roughly 12% of the banked population—creating a pool of about 100 billion data points. This data trove is invaluable in a market where traditional credit bureaus capture only a thin slice of economic activity.

Paving the Way for Stablecoins

The strategic roadmap for the combined entity includes developing open banking-enabled stablecoin use cases. Stablecoins, which made up 43% of all African cryptocurrency transactions in 2024 according to a Yellow Card report, are crucial tools for businesses hedging against local currency volatility and dollar scarcity. However, liquidity is often hampered by cumbersome conversion processes. The integration of Mono's APIs is expected to create a seamless pathway for converting and settling digital assets directly into verified bank accounts, streamlining cross-border trade in inefficient corridors.

A Sign of Market Maturation

The transaction provides a notable liquidity event, signaling the maturation of Africa's fintech sector. Early Mono backers, including General Catalyst and Tiger Global, saw returns of up to 20 times their investment. The deal follows a period of market consolidation and highlights the challenges open banking startups face in a region with fragmented banking standards and a regulatory environment that often lags behind innovation. For Mono, joining Flutterwave offers a clear path to scale without the friction of independent regional expansion.