In Canada, Kuda has secured a remittance licence which will allow the Neobank to offer seamless sending of money home and multi currency wallet to African living and working in Canada. On the other hand, Kuda secured a Payment Service Provider (PSSP) licence in Tanzania. This license will let the digital bank to offer seamless payment to the people of Tanzania; just like it’s doing in Nigeria.
Kuda securing payment Licenses in Canada and Tanzania is part of the fintech firm’s move to expand across Africa and reach global market. Remember that Kuda Bank has once expanded to United Kingdom (UK), offering remittance services to Nigerian living and working in UK. However, it’s been reported that the Neobank has discontinued it UK remittance services citing that “market was not ready for a subscription-based remittance offering.”
Who knows, the remittance services the bank is launching in Canada and Tanzania may not go like the UK’s scope; the subscription based offering with a flat fee of £3 and a transfer limit of £10,000. Maybe by changing strategy in these new market, things may workout as planned.
However, Kuda Bank should be ready to compete with old players in the new markets. Fintechs like LemFI and Nala are already in the game. They position themselves as remittance banks for Africans in the diaspora. Nevertheless, Kuda still have opportunity to grow its foreign exchange revenue in those markets because Nigerian immigrants continue to grow in those markets.
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