State of Merchant of Record in Africa
State of Merchant of Record in Africa
State of Merchant of Record in Africa
Discover how the Merchant of Record (MoR) model is transforming digital commerce across Africa. Gain insights into emerging trends, regulatory shifts, and data-backed strategies to leverage MoR for seamless cross-border commerce and scalable business growth.
Discover how the Merchant of Record (MoR) model is transforming digital commerce across Africa. Gain insights into emerging trends, regulatory shifts, and data-backed strategies to leverage MoR for seamless cross-border commerce and scalable business growth.
Discover how the Merchant of Record (MoR) model is transforming digital commerce across Africa. Gain insights into emerging trends, regulatory shifts, and data-backed strategies to leverage MoR for seamless cross-border commerce and scalable business growth.
Scaling in the African Market
Scaling in the African Market
Scaling in the African Market
As CEO of AltSchool, a fast-growing Edtech platform, Adewale Yusuf had built a product that resonated with over 100,000 learners across Africa and globally.
As CEO of AltSchool, a fast-growing Edtech platform, Adewale Yusuf had built a product that resonated with over 100,000 learners across Africa and globally.
As CEO of AltSchool, a fast-growing Edtech platform, Adewale Yusuf had built a product that resonated with over 100,000 learners across Africa and globally.
Across Nairobi, Kigali and Lagos, with over 50,000 students loving the experience... their growth was almost entirely organic.
Across Nairobi, Kigali and Lagos, with over 50,000 students loving the experience... their growth was almost entirely organic.
But scaling? That was a different story...
But scaling? That was a different story...
“When we started, we ran into the problem of accepting payments,” Adewale recalls. “We were on the search for solutions to help with accepting local payments and expanding across Africa while staying compliant to local tax regulations and compliance rules.”
ADEWALE YUSUF,
CEO, Altschool
“When we started, we ran into the problem of accepting payments,” Adewale recalls. “We were on the search for solutions to help with accepting local payments and expanding across Africa while staying compliant to local tax regulations and compliance rules.”
ADEWALE YUSUF,
CEO, Altschool
“When we started, we ran into the problem of accepting payments,” Adewale recalls. “We were on the search for solutions to help with accepting local payments and expanding across Africa while staying compliant to local tax regulations and compliance rules.”
ADEWALE YUSUF,
CEO, Altschool
“When we started, we ran into the problem of accepting payments,” Adewale recalls. “We were on the search for solutions to help with accepting local payments and expanding across Africa while staying compliant to local tax regulations and compliance rules.”
ADEWALE YUSUF,
CEO, Altschool
Each expansion came with new challenges
Each expansion came with new challenges
Tax registration hurdles across jurisdictions
Tax registration hurdles across jurisdictions
Payment
gateways failing mid-transaction
Payment
gateways failing mid-transaction
Complex data compliance roadblocks
Complex data compliance roadblocks
Despite great products and strong demand,
operational complexities often stifle expansion.
Despite great products and strong demand, operational complexities often stifle expansion.
Despite great products and strong demand,
operational complexities often stifle expansion.
Despite great products and strong demand,
operational complexities often stifle expansion.
This isn’t just Altschool’s problem
This isn’t just Altschool’s problem
This isn’t just Altschool’s problem
It's the story of countless businesses eager to tap into Africa's immense potential of 1.3 billion people and a $3.4 trillion GDP, yet are paralyzed by its intricate financial and legal landscape.
The promise of millions of new users collides with the harsh realities of fragmented markets and diverse regulations.
It's the story of countless businesses eager to tap into Africa's immense potential of 1.3 billion people and a $3.4 trillion GDP, yet are paralyzed by its intricate financial and legal landscape.
The promise of millions of new users collides with the harsh realities of fragmented markets and diverse regulations.
It's the story of countless businesses eager to tap into Africa's immense potential of 1.3 billion people and a $3.4 trillion GDP, yet are paralyzed by its intricate financial and legal landscape.
The promise of millions of new users collides with the harsh realities of fragmented markets and diverse regulations.
There’s a smarter way. Merchant of Records
There’s a smarter way. Merchant of Records
Merchant of Records (MoRs) do more than just process payments. They simplify compliance, boost success rates, and unlock growth across Africa.
Merchant of Records (MoRs) do more than just process payments. They simplify compliance, boost success rates, and unlock growth across Africa.
Simplify compliance
Simplify compliance
Simplify compliance
Expand across Africa
Expand across Africa
Expand across Africa
Boost success rates
Boost success rates
Boost success rates
Ready to move from red tape to revenue?
Ready to move from red tape to revenue?
Ready to move from red tape to revenue?
The 2025 State of Merchant of Record in Africa by Startbutton reveals how to overcome cross-border hurdles and tap into the continent’s full potential.
The 2025 State of Merchant of Record in Africa by Startbutton reveals how to overcome cross-border hurdles and tap into the continent’s full potential.
The 2025 State of Merchant of Record in Africa by Startbutton reveals how to overcome cross-border hurdles and tap into the continent’s full potential.
Key insights
Key insights
Local Payments VS Cross-border payments
Local Payments VS Cross-border payments
80-90%
80-90%
🏁 Local payment success Rates
🏁 Local payment success Rates
Local payment processors have an advantage in achieving high success rates for local transactions, typically around 80-90% or higher, due to their direct integration with local payment rails.
Local payment processors have an advantage in achieving high success rates for local transactions, typically around 80-90% or higher, due to their direct integration with local payment rails.
Local payment processors have an advantage in achieving high success rates for local transactions, typically around 80-90% or higher, due to their direct integration with local payment rails.
But cross-border payment success rates for global payment processors are disappointingly low, only reaching 25-40% due to regulatory and infrastructure complexities.
But cross-border payment success rates for global payment processors are disappointingly low, only reaching 25-40% due to regulatory and infrastructure complexities.
But cross-border payment success rates for global payment processors are disappointingly low, only reaching 25-40% due to regulatory and infrastructure complexities.
25-40%
25-40%
🌍 Cross-border payment
success rates
🌍 Cross-border payment success rates
By leveraging MORs and their payment orchestration technology, businesses can significantly improve cross-border payment success rates, achieving up to 90% and unlocking new growth opportunities.
By leveraging MORs and their payment orchestration technology, businesses can significantly improve cross-border payment success rates, achieving up to 90% and unlocking new growth opportunities.
40%
40%
Without MORs
Without MORs
90%
90%
With MORs
With MORs
Impact of MoRs on cross-border payment success rates
Impact of MoRs on cross-border payment success rates
Merchants of Record (MORs) are becoming a critical layer in the payments value chain, handling functions that processors and other players cannot, due to regulatory restrictions and limitations in their business models.
Merchants of Record (MORs) are becoming a critical layer in the payments value chain, handling functions that processors and other players cannot, due to regulatory restrictions and limitations in their business models.
Country A
Country A
Country A
Country B
Country B
Country B
Country C
Country C
Country C
Merchant of Record
(MoRs)
Merchant of Record
(MoRs)
Merchant of Record
(MoRs)
Seller
Seller
Seller
Customers
Customers
Customers
The payment value chain
The payment value chain
At NijaPay and Talk 360, we're amazed by the speed at which the Merchant of Record solution allows us to expand across Africa.
I remember the first time we told our marketing team that we'll launch in a new market within a month, they were stunned, asking, “Since when did that become so easy?”
At NijaPay and Talk 360, we're amazed by the speed at which the Merchant of Record solution allows us to expand across Africa.
I remember the first time we told our marketing team that we'll launch in a new market within a month, they were stunned, asking, “Since when did that become so easy?”
At NijaPay and Talk 360, we're amazed by the speed at which the Merchant of Record solution allows us to expand across Africa.
I remember the first time we told our marketing team that we'll launch in a new market within a month, they were stunned, asking, “Since when did that become so easy?”
Hans Osnabrugge
Chief Executive Officer, Talk 360
Hans Osnabrugge
Chief Executive Officer, Talk 360
Hans Osnabrugge
Chief Executive Officer, Talk 360
The global rise of Merchant of Record (MoR) solutions, driven by the success of companies like Airwallex and Paddle, has opened up a significant opportunity in Africa.
In response, a new wave of players is emerging to capture this market. Companies such as Startbutton, Vesti, and Kyshi are taking a broad-based approach, combining market access, payment processing, and compliance services. While others like Precium and Carry1st are pursuing more specialized strategies, focusing their MoR offerings on specific industry verticals.
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