Innovative Startups Transforming Cross-Border Payments in Nigeria

Nigeria’s cross-border payment landscape is rapidly changing due to startups catering to the need for seamless international transactions. Projected cross-border payment flows are expected to reach $290 trillion by 2030, driven by factors like e-commerce growth and digital payment advancements. Startups are fostering economic growth while ensuring secure and cost-effective payment solutions for users.

The cross-border payment sector in Nigeria is undergoing significant transformations as startups rise to meet the growing demand for efficient international transaction solutions. With projections estimating cross-border payment flows to reach $290 trillion by 2030, factors such as international e-commerce, workforce mobility, and modern digital payment technologies are driving this development. These startups offer cost-effective, secure payment channels across various platforms, including banks, fintechs, and blockchain services, encouraging economic growth and enhancing financial inclusion.

Prominent Startups in Nigeria
1. Juicyway: Leveraging stablecoin technology, Juicyway allows users to globally send, receive, and process payments using both fiat and cryptocurrencies. The startup has successfully processed $1.3 billion across 25,000 transactions for 4,000 clients in Nigeria, Canada, the USA, and the UK. It recently secured a $3 million pre-seed funding led by P1 Ventures.

2. Accrue: Established in 2021, Accrue received $1.58 million in seed funding to enhance its payment solutions. Originally focused on simplifying investments, the firm pivoted to cross-border payments, attracting over 200,000 users and facilitating rapid transactions throughout Africa over the past three years.

3. WeWire: WeWire facilitates multi-currency payments, enabling businesses in Nigeria, Ghana, and Kenya to send and receive funds internationally. Founded by Eben Ghanney in April 2022, it recorded a transaction volume of $210 million within its first year, addressing the urgent payment needs of businesses engaged in imports and logistics.

4. Waza: Launched in January 2023, Waza provides foreign exchange liquidity and streamlined settlement infrastructure, tackling challenges in global trade. Co-founded by industry veterans, it recently unveiled Lync, a banking service to assist businesses with multi-currency accounts and efficient international transactions.

5. Klasha: Founded in 2021, Klasha specializes in B2B cross-border payment solutions between Africa and Asia through virtual accounts and APIs. Licensed in multiple countries, this startup aims to meet the transactional needs of businesses engaging in cross-regional commerce.

6. Vesti: Vesti, established in 2020 by brothers Olusola and Abimbola Amusan, provides solutions for international fund transfers with real-time encryption. Utilizing AI and blockchain, it supports migrants during their international journeys, aided by its AI copilot, Miai.

7. Flutterwave: Founded in 2016 by Olugbenga Agboola, Flutterwave is a leading payment gateway in Africa, known for processing over 550 million transactions worth more than $32 billion. With a presence in 34 countries, it supports numerous currencies and integrates with major global payment systems.

The emergence of innovative startups within Nigeria’s cross-border payment landscape is crucial to addressing the demand for efficient and reliable international transaction options. By harnessing technology and investment, these companies contribute significantly to financial inclusion and economic growth. The growth trajectory of these startups reflects the ongoing evolution of digital finance in Nigeria, indicating a bright future for the industry.

Original Source: businessday.ng