Fintech apps that help Nigerians send and receive money abroad

For a long time, cross-border transactions have been a constant source of pain for Africans.

While the rest of the world continues to evolve towards a tightly knit global economy, the African continent has more or less been left behind.

Femi Nathaniel is a Nigerian, who moved as a graduate student to the University of British Columbia, Vancouver, Canada. Like many Nigerians, sending money home to one’s mother has always been a daunting task.

“When I tried to send money to my mother in Nigeria, I couldn’t use PayPal because it doesn’t credit your naira account. Other cross-border methods can shave off as much as 9% of the value of my money,” he said in an interview to Benjamindada.com.

Like most Nigerians (and Africans who have traveled), Femi discovered that most of the available cross-border financial solutions have one problem or the other. The challenge of payment and receipt across national borders is driven by three main problems; restrictions on use, long transaction processing times and prohibitive fees.

In terms of restrictions, most platforms used for international transactions such as WorldRemit, PayPal and Payoneer are either completely unavailable to Africans or restricted.

PayPal, for example, allows Nigerian users to send but blocks them from receiving money.

Conversely, WorldRemit does the opposite, allowing Nigerians to receive from other countries but preventing them from sending.

The processing time for these payment methods can also take from hours to days before the transaction is completed. In addition, the fees Africans have to pay are often higher than the global average fee.

In recent years, African entrepreneurs have taken the bull by the horn and reconnected the continent to the global economy. Although the journey towards solving cross-border transactions is long, some startups have already made significant progress.

These startups enable Nigerians and other Africans to send and receive money from different corners of the globe. The startups are Afriex, Kyshi, Paga, Lemonade Finance and Africhange.

Fintech apps that help Nigerians send and receive money from abroad

Afriex

Afriex is a multi-currency transfer app that allows users to send and receive money from anywhere in the world. The Nigerian blockchain-based transfer app was founded in 2019 by Tope Alabi and John Obirije.

With Afriex you can send and receive money from the US, UK, Nigeria, Ghana, Kenya, Uganda and Canada. Money can be sent from the app via a debit card, bank account or to other Afriex users. Afriex does not charge for transfers, but does charge for withdrawals. The maximum amount you can send in one day is $3,000.

Kyshi

Kyshi is a fintech company that provides a platform for Africans to transact money across borders. The fintech startup runs a peer-to-peer system that allows users to send and exchange money in Nigeria and the UK.

Dubbed the neo-bank for Africans, Kyshi was founded in 2020 by Ayo Akindele. Payment initiation fees are flexible depending on a number of factors, but are no more than 1%. Kyshi also charges zero installation and maintenance fees.

Paga

Paga is a mobile payment company that allows people to send and receive money digitally and creates easy financial access for everyone. Users with mobile devices can perform transactional activities using their devices.

Paga was founded in Nigeria in 2009 by Tayo Oviosu and publicly launched in 2011. Paga’s wallets can be used to pay local bills, airtime, school fees and other retail transactions.

Lemonade Finance

Lemonade Finance is a digital bank for the African diaspora. The financial technology company provides users with accounts in their country of residence and country of origin for personal and business banking needs.

Users of the Lemonade app can send and receive money from over 20 countries (which include Canada, UK, US, Ghana, Nigeria and Uganda) without fees. The YC-backed startup was founded in 2020 by Olalere Ridwan and Rian Cochran.

Africhange

Africhange is a money transfer platform that provides users with an easy way to send money to and from across Africa and North America. The borderless remittance app currently serves users in Canada, the United States, Mexico, Nigeria and Ghana.

At Africhange you can send money within minutes at a low cost and at the best exchange rate to friends and family. The startup was founded by Tega Ogigirigi in December 2020.

Exit

As e-payments continue to gain momentum and adoption in Nigeria and the rest of Africa, more fintech apps will continue to be built to expand the scope of the cross-border payments infrastructure that connects Africa to the rest of the globe.

Related article: How Kuda’s expansion in the UK will drive remittances in Africa