Nigerian-based neo-bank Kuda Microfinance Bank has secured payment licenses in Tanzania and Canada as part of an expansion drive across Africa and the globe.
One of the acquired licences will allow Kuda Bank to offer remittance and multi-currency wallet services to Africans living in Canada. The second, a Tanzanian Payment Service Provider (PSSP) licence, will allow Kuda to offer similar services to its Tanzanian customers.
Furthermore, these new licences will put Kuda in direct competition with startups like LemFi, Nala, Eversend and other global neo-banks for Africans in the diaspora.
The remittance market has become more attractive to investors as more Nigerians and Africans seek greener pastures abroad. In 2022, Nigeria was one of Canada’s top immigration sources, welcoming about 22,085 Nigerian immigrants, making up 5.05% of Canada’s total number of permanent residents.
Hence, by targeting countries like Canada and the UK with rising Nigerian migration figures, Kuda Bank can leverage this to establish a thriving remittance business globally and expand the fintech’s influence around the world.
