Startups Leading the Charge in Nigeria’s Cross-Border Payments Sector

Nigeria’s cross-border payment ecosystem is rapidly evolving with startups leveraging technology to streamline international transactions. Projected flows will reach $290 trillion by 2030, driven by e-commerce and improved workforce mobility. Notable entries include Juicyway, Accrue, WeWire, Waza, Klasha, Vesti, and Flutterwave, each contributing unique solutions to enhance the cross-border payments landscape in Africa.

Nigeria’s cross-border payment sector is rapidly transforming as startups emerge to meet the rising demand for smooth international money transfers. With projections from the Fintech 2025+ report anticipating cross-border payment flows reaching $290 trillion by 2030, factors such as the growth of international e-commerce and enhanced workforce mobility are fueling this expansion. These startups are focused on delivering faster, cost-efficient, and secure payment services that not only boost economic growth but also enhance financial inclusion across the region.

Startups such as Juicyway are leading the charge by employing stablecoin technology to facilitate global payments through fiat and cryptocurrencies. Founded in 2021 by Ife Johnson and Justin Ziegler, Juicyway has processed $1.3 billion in transactions for 4,000 customers in Nigeria, Canada, the USA, and the UK. Recently, it raised $3 million in pre-seed funding led by P1 Ventures, showcasing strong investor interest in innovative payment solutions.

Accrue, another promising player founded by Clinton Mbah, Adesuwa Omoruyi, and Zino Asamaige in 2021, aims to expand its payment solutions across Africa. After securing $1.58 million in seed funding, Accrue shifted its focus from simplifying cryptocurrency investments to providing efficient cross-border payment solutions. This pivot has drawn over 200,000 users, proving the high demand for swift financial transactions on the continent.

WeWire, founded by Eben Ghanney, helps businesses conduct transactions in various currencies. Since its formal launch in April 2022, WeWire has successfully handled transactions worth $210 million, addressing the needs of businesses seeking reliable international payment mechanisms. The startup streamlines local and international currency exchanges for its clients in Nigeria, Ghana, and Kenya, further enhancing cross-border trade efficiency.

Waza, which debuted in January 2023, has established itself in the African fintech sphere. Co-founded by Maxwell Obi and Emmanuel Igbodudu, Waza addresses liquidity issues in cross-border transactions. Its innovative platform offers a robust foreign exchange liquidity solution along with Lync, a banking service designed for managing multi-currency accounts, highlighting Waza’s adaptability to market demands.

Klasha aims to foster cross-border B2B payment solutions between Africa and Asia via its virtual multi-currency accounts and payout APIs. Founded in 2021 by Jess Anuna, Klasha operates in several countries and seeks to meet the complex payment needs of businesses bridging these two regions. Its commitment to competitive pricing and rapid payment solutions positions Klasha as a vital player in the market.

Vesti, a migration fintech firm founded in 2020 by Olusola and Abimbola Amusan, utilizes artificial intelligence and blockchain technology for secure transactions. Vesti’s innovative solutions facilitate money transfers for migrants, with its AI-driven copilot, Miai, providing personalized assistance throughout users’ migration journeys, thereby enhancing their experience during international relocation.

Lastly, Flutterwave, established by Olugbenga Agboola in 2016, has become a prominent name in Nigeria’s payment gateway industry. With a presence across 34 African countries, Flutterwave supports over 150 currencies and has processed over 550 million transactions totaling more than $32 billion, positioning it as a leader in cross-border payment facilitation.

In conclusion, the growth of Nigeria’s cross-border payment landscape is propelled by innovative startups addressing the evolving needs of businesses and consumers alike. With significant investments and advancements in technology, these companies are paving the way for a more integrated financial ecosystem within Africa and beyond. By enhancing the efficiency, security, and accessibility of international transactions, these startups are poised to contribute to economic growth and financial inclusion on a global scale.

Original Source: businessday.ng