Kuda secures payment licenses for its expansion into Canada and Tanzania. Kuda Technologies, the parent company of Kuda Microfinance Bank based in Nigeria, has recently obtained payment licenses in Tanzania and Canada.
This strategic move aligns with the company’s ambition to extend its presence across both the African continent and global markets.
Kuda Expansion into Canada and Tanzania
Kuda Technologies, the parent company of Kuda Microfinance Bank based in Nigeria, has recently obtained payment licenses in Tanzania and Canada. This strategic move aligns with the company’s ambition to extend its presence across both the African continent and global markets.
With these licenses, Kuda aims to provide remittance and multi-currency wallet services to Africans in Canada, as well as offering similar services to customers in Tanzania through its Tanzanian Payment Service Provider (PSSP) license.
This expansion puts Kuda in direct competition with other African-focused fintech startups, such as LemFi, Eversend, and Nala, which also operate as global neobanks for Africans in the diaspora.
Kuda’s Foray into the Remittance Market
This isn’t Kuda’s first foray into the remittance market. In 2023, the company, along with five other banks, obtained a license from the State Bank of Pakistan (SBP) to run a digital bank in the country.
Additionally, Kuda secured a payment license in the United Kingdom (UK) in 2022 and launched a subscription remittance product. However, this offering was later discontinued, indicating that the market was not yet ready for a subscription-based remittance service.
Kuda to Adopt a Different Approach from Its UK Operations
As Kuda prepares to enter the Tanzanian and Canadian markets, it is likely that it will adopt a different approach from its UK operations, considering the outcome there. The remittance market has seen increased investor interest, especially with the growing number of Africans, particularly Nigerians, migrating abroad in search of better opportunities.
With Nigeria ranking as the fourth largest immigration source country for Canada in 2022, and with remittance inflows into Africa reaching an estimated $100.1 billion, Kuda sees an opportunity to establish a thriving global remittance business and increase its foreign exchange revenue.
Why Kuda Is Prioritizing Markets Like Canada
By prioritizing markets like Canada, where Nigerian migrants are increasingly settling, Kuda aims to capitalize on this trend and expand its influence globally while navigating the challenges of fluctuating foreign exchange rates.
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