Just a few years ago, many dismissed open banking in Africa as premature. The continent’s financial landscape was too fragmented, they argued—hundreds of banks, mobile money operators, and payment systems operating in silos across 54 countries. Building a scalable business on such shaky ground seemed impossible. But on January 5, 2026, Flutterwave, Africa’s leading payments giant, shattered that narrative by acquiring Mono, the pioneering open banking infrastructure provider often called the “Plaid for Africa.”This all-stock deal, valued between $25 million and $40 million, isn’t just another fintech merger. It’s a bold declaration: the future of African payments lies in account-to-account (A2A) transfers powered by verified data, not the expensive and often irrelevant legacy card networks that dominate elsewhere. Ronald Ngoda, founder Pay Hero Kenya, deeply embedded in Kenya’s fintech ecosystem at Pay Hero Kenya, He watched this shift unfold from the front lines. Flutterwave’s move validates what we’ve been building for years—a unified approach to Africa’s chaotic payments reality. Here’s why this acquisition signals that open banking has arrived, and what it means for builders, businesses, and developers across the continent.
Shifting from Card Rails to Local Bank Rails
Card payments have long been the default for global fintechs entering Africa, but they’ve always felt like a square peg in a round hole. High fees, slow settlement times, and low acceptance in rural or informal economies make them ill-suited for how money actually moves here. In contrast, direct bank transfers and mobile money flows are faster, cheaper, and more aligned with local habits. Flutterwave’s integration of Mono’s APIs accelerates this pivot. Mono enables secure access to bank data, direct payments, and identity verification—turning fragmented bank accounts into reliable payment rails. For businesses, this means lower costs and higher success rates. For consumers, it translates to seamless, instant transactions without relying on Visa or Mastercard intermediaries. In markets like Nigeria and Kenya, where mobile money giants like M-Pesa dominate, blending open banking with existing rails creates a hybrid that’s uniquely African. No more forcing global models; we’re building on what works locally.
Data as the New Foundation of Trust
One of Africa’s biggest fintech hurdles has been trust—or the lack of it. Limited credit bureaus and unreliable data make KYC, risk assessment, and lending a nightmare for SMEs and fintechs alike. Open banking changes that by unlocking verified financial data with customer consent. Mono’s platform has already powered millions of account linkages and billions of data points for lending and verification. Combined with Flutterwave’s scale across 30+ countries, this creates a trust layer that’s scalable and compliant. For SMEs—the backbone of African economies—this means faster onboarding, better access to credit, and reduced fraud. Lenders can assess risk accurately without endless paperwork. At Pay Hero Kenya, we’ve seen firsthand how data-driven verification streamlines operations, and this deal amplifies that potential continent-wide.
Navigating Payment Fragmentation
Africa’s payment ecosystem is a developer’s worst nightmare: M-Pesa in Kenya, Airtel Money across East Africa, bank transfers in Nigeria, till numbers, paybills—the list goes on. Integrating each one separately is time-consuming and error-prone. That’s why, at Pay Hero Kenya, we built a proprietary unified API that lets developers handle multiple payment methods through a single interface. Flutterwave’s acquisition of Mono takes this to the next level by embedding open banking into a broader payments network. It reduces fragmentation, allowing businesses to reach customers across borders without juggling dozens of integrations. This provider-agnostic approach is the future: infrastructure that works across diverse markets, not tied to one rail or operator.
The Rise of Pragmatic Infrastructure Builders
Building fintech infrastructure in Africa demands more than a clever API—it requires navigating evolving regulations, securing licenses, and achieving real scale. Many early players struggled here, but Flutterwave and Mono have proven it’s possible through compliance expertise and persistent execution. This deal underscores that solo acts won’t dominate anymore. Consolidation favors those with deep regulatory knowledge and operational grit. It’s a wake-up call: focus on robust, compliant foundations, or get left behind.
What This Means for Africa’s Fintech Future
Flutterwave’s bet on Mono signals the end of hype-driven fintech and the dawn of genuine infrastructure. We’re moving toward data-driven, interoperable systems tailored to Africa’s realities—cheaper payments for SMEs, simpler integrations for developers, and more inclusive services for millions. The days of depending on a single provider or legacy rail are over. Instead, expect a multi-layered ecosystem where open banking enables everything from instant A2A transfers to innovative lending and beyond. As someone grinding in the trenches, I’m excited. At Pay Hero Kenya, we’re already living this vision with our unified payments platform. For fellow developers tackling payment integrations, the challenges remain real—fragmentation, reliability, compliance—but opportunities abound. What’s the biggest pain point you’re facing in African payment integrations today? Let’s discuss practical solutions and keep building grounded, impactful infrastructure.