Why African Fintechs Struggle with Global Expansion And How to Fix It

By Temitope Falaye

A decade ago, few would have imagined that Africa would emerge as one of the fastest-growing fintech ecosystems in the world. Yet today, the continent is home to some of the most exciting financial technology companies, attracting billions of dollars in funding and expanding financial inclusion at an unprecedented scale. The rise of companies like Flutterwave, Paystack, and Chipper Cash is proof that Africa is not just a consumer of technology but a builder of financial solutions that serve millions of people.

But as much as African fintechs have excelled in solving problems within the continent, many struggle when they attempt to scale beyond Africa. The dream of expanding into international markets often meets a harsh reality. Some get stuck in endless regulatory loops. Others fail to adapt their products to different customer behaviours. Many burn through millions in funding without making a dent in new markets. The question is, why does this happen? And more importantly, how can African fintechs expand successfully while retaining their core strengths?

Working at the centre of fintech growth, I have seen firsthand what works and what doesn’t. From leading international expansion strategies at Flutterwave to managing high-level fintech partnerships across global markets, I have learned that success in a new region is never accidental. It is engineered. If African fintechs want to scale globally, they must move past common myths and embrace new strategies that prioritise trust, compliance, and market adaptation.

One of the biggest misconceptions among African founders is the belief that a product that works in Lagos or Nairobi will automatically thrive in London or New York. The truth is, financial habits vary widely across regions. In Nigeria, fintech adoption is largely driven by mobile-first solutions due to limited access to traditional banking infrastructure. In Europe, where credit cards dominate, consumer expectations around payments, security, and fees are completely different. A business that has scaled effortlessly across Africa cannot assume that the same approach will work in international markets. Without proper research and adaptation, even the most successful African fintechs can struggle to gain traction.

Beyond customer behaviour, one of the biggest roadblocks to global expansion is regulation. Many African startups are used to launching first and figuring out compliance later, but this approach can be fatal in developed markets. In regions like the UK, the US, and Europe, regulatory compliance is not just a box to tick—it is the foundation of trust. When I worked on the expansion of Flutterwave’s remittance product “Send” in London, the real challenge was not just introducing the product but ensuring it met all financial regulations and security standards. Without proper licensing and a clear risk management strategy, fintechs can find themselves locked out of key markets before they even get a chance to prove themselves.

Another common mistake is assuming that social media visibility translates to real market entry. Many African fintechs focus heavily on building an audience but fail to establish credibility. While digital marketing is essential, global expansion requires a more structured market entry strategy. International fintech players do not just announce new products on social media and hope for adoption. They engage with regulators, secure local banking partnerships, and build trust within the financial community. It is not enough for a product to be innovative; it must also be perceived as reliable. Without this foundation, even the most ambitious global expansion plans will struggle to take off.

For African fintechs to succeed internationally, they must take a different approach. The first step is to build for the local market, not just for scale. Too often, fintechs try to replicate their African model in a new region without considering local needs. Expansion should not be about copy-pasting a product but about reinventing it to fit the realities of the new market. This means understanding how people prefer to pay, whether through credit cards, direct debits, or alternative payment solutions. It means hiring local talent who understand the market landscape and can offer valuable insights on customer expectations. It also means accepting that what worked in one region may not work elsewhere. Adaptability is key.

Another critical step is prioritising compliance from day one. In Africa, startups often launch first and figure out licensing later, but in more developed financial markets, this approach is risky. Fintech founders must work with regulatory experts, secure the necessary approvals before launch, and anticipate potential legal challenges. I have seen too many fintechs delay compliance until it becomes a crisis, but the most successful ones make it a priority from the start. The faster a company aligns with regulations, the smoother its expansion will be.

Trust is another currency that fintechs cannot afford to overlook. In many developed markets, financial institutions and regulators are naturally sceptical of new players, especially those from unfamiliar territories. African fintechs must work twice as hard to prove their credibility. One way to do this is by forming strong partnerships with established financial institutions. When customers see that a fintech has secured partnerships with reputable banks, payment processors, or investment firms, they are more likely to trust and adopt the product. Another way is through transparency. In many global markets, consumers expect clear communication about fees, security, and compliance. Fintechs that prioritise openness and customer education are far more likely to succeed than those that focus solely on aggressive marketing.

Perhaps the most important shift African fintechs must make is moving beyond the startup mentality. While rapid growth and disruption are important in the early stages, long-term success in global markets requires the mindset of a financial institution. Fintech companies must invest in operational resilience, risk management, and customer experience at the same level as traditional banks. This means focusing not just on scaling quickly but on building sustainable systems that can withstand scrutiny. Global investors, regulators, and customers will take a fintech seriously when they see that it operates with the same discipline and responsibility as any major financial institution.

Africa’s fintech industry has already proven that it can build world-class solutions. The next challenge is proving that it can sustain and scale those solutions globally. The companies that will succeed are those that move beyond hype and take a disciplined, strategic approach to expansion. They will be the ones that embrace compliance early, build trust before pushing for growth, and understand that new markets require new strategies. Africa’s fintech future is global, but only those who adapt will thrive.

The world is watching. The opportunity is there. The question is, who will be ready?