Merchants of Record can unlock $125 billion for African businesses—Startbutton report says

$125.55 billion. This is the potential value African-focused businesses stand to gain in revenue by adopting Merchant of Record (MoR) solutions to bypass cross-border market entry friction, according to a new report. An MoR product acts as a legal entity, processing customer payments, managing local tax and regulatory compliance, and mitigating the financial risks tied to cross-border sales.

Startbutton, a Norrsken-backed startup that helps businesses expand without physical offices, has partnered with African tech publication Condia to launch “The State of Merchant of Record in Africa” report. The analysis details how MoR platforms can slash market entry times from 6-12 months to as little as 24 hours. The report also highlights a critical operational gain: improving payment success rates from a low of 25-40% with traditional processors to as high as 90%.

“Merchants of Record are not just a facilitator for African businesses; they’re a catalyst,” said Mallick Bolakale, CEO of Startbutton. “This report, developed with Condia’s data expertise, illuminates the path forward for digital commerce in Africa.”

The report lands just 10 months after Startbutton itself expanded into seven Francophone African countries—including Senegal, Togo, and Cameroon—to enable companies to enter these markets and accept local payments. Expansion in the region is often fraught with complex regulations, language barriers, and fragmented payment infrastructure.

Startbutton claims it currently processes over $5 million monthly, earning a 0.5-1% commission on each transaction. Bolakale expects the new Francophone market to add $2 million to its monthly processing volume.

The company serves over 100 businesses, primarily in aviation, gaming, and e-commerce, across 20 countries. Last year, the startup secured an International Money Transfer Operator (IMTO) license in Nigeria and a Financial Conduct Authority (FCA) license in the UK.