Kuda Technologies, the parent company of Kuda Bank, backed by Target Global, has finally acquired payment licenses in Tanzania and Canada. This allows the company to operate legally in these countries and is a step towards exploring other African nations and the global market.
These licenses will give Kuda the right to offer remittance and multi-currency wallet services, catering to both Africans residing in Canada and its Tanzanian clients. This places Kuda in direct competition with emerging startups such as LemFi.
Back in 2022, Kuda obtained a payment license in the United Kingdom and introduced a subscription-based remittance service, featuring a flat fee of £3 and a transfer cap of £10,000.
Although reports indicate that this product has since been discontinued possibly due to the market’s unpreparedness for a subscription model in remittance services, it showed their level of commitment and how far they plan to penetrate the Western market
Given this experience, it’s likely that Kuda will take a different approach when launching its services in Canada and Tanzania, possibly steering away from subscription-based models.
The remittance market has become increasingly appealing to investors, driven by a growing number of Nigerians and Africans seeking opportunities abroad. Canada, for instance, was the fourth-largest source of immigrants for Canada in 2022, with 22,085 Nigerians making up 5.06% of Canada’s total permanent residents.
Over 100,000 people of Nigerian descent also call Canada home. And not just that, Africa received an estimated $100.1 billion in remittance inflows in 2022, contributing 3.4% to the continent’s GDP.
