Mallick Bolakale, the CEO of Startbutton, a Merchant of Record (MoR) service, is eyeing Francophone Africa as a lucrative market with untapped potential and fewer competitors compared to its Anglophone counterpart. Startbutton recently announced its expansion into seven Francophone countries, including Benin, Togo, Senegal, Mali, Burkina Faso, Guinea Conakry, and Cameroon, adding to its existing presence in Ivory Coast, Nigeria, Ghana, Kenya, Rwanda, South Africa, and Uganda.
This strategic move underscores the growing appeal of Francophone Africa as a business hub. With a population of over 300 million people and strong trade links with Europe, particularly France, the region offers significant growth opportunities for businesses looking to expand. However, navigating cross-border payments and regulatory compliance in the region remains a major challenge, one that Startbutton aims to address through its innovative Merchant of Record model.
Founded in 2023 by Malick Bolakale, a former compliance lead at Paystack, and Kelechi Oti, a former Microsoft engineer, Startbutton is a Norrsken-backed startup that assists businesses in selling, processing payments in local currencies, and managing compliance without the need to establish local offices. The company currently supports over 100 merchants across 25 countries in various industries such as travel, hospitality, financial services, gaming, and e-commerce. With its recent expansion into Francophone Africa, Startbutton now operates in a total of 15 African countries.
Startbutton has experienced significant growth in transaction volume, surpassing $5 million per month, a 400% increase year-over-year. The company generates revenue by taking a commission on each processed transaction and expects this upward trend to continue, projecting an additional $2 million in monthly transaction volume as it expands into Francophone Africa.
Mallick Bolakale views Francophone Africa as a market with immense potential and minimal competition compared to its Anglophone counterpart. He highlights the region’s strong trade ties with Europe, especially France, as a key driver of demand for payment solutions and business growth opportunities.
One of Startbutton’s key differentiators is its focus on regulatory compliance in addition to payment processing. Unlike traditional payment processors, the company prioritizes guiding businesses through complex regulatory frameworks and ensuring adherence to local tax and compliance requirements, particularly in markets like Francophone Africa where tax complexities and bureaucratic challenges are common.
Startbutton’s expansion aligns with its broader vision of serving as a foundational infrastructure provider for businesses across Africa. While payments are at the core of its services, the company aims to support business growth by facilitating seamless transactions and handling regulatory requirements for its clients.
As global and regional businesses increasingly turn their attention to Francophone Africa, the payments ecosystem in the region is poised for significant transformation. Startups like Startbutton play a vital role in competing with established players and effectively managing regulatory challenges, shaping the future of cross-border commerce in Africa.
