Kuda Technologies has relaunched its cross-border remittance service, targeting users outside Nigeria for the first time in three years. The feature now sits in a new multi-currency wallet that supports direct transfers in pounds and euros into Nigerian bank accounts. The fintech plans to add US and Canadian dollar options within six months.
Q1 Success Fuels Comeback
Kuda reported a landmark quarter processing over 300 million transactions valued at ₦14.3 trillion equivalent roughly $9.3 billion across retail and business segments. Breakdowns show ₦8.5 trillion in retail and ₦5.8 trillion in business transactions.
The bank approved ₦16.4 billion ($10.7 million) in overdrafts during the quarter, up 43% from the previous period. This financial heft gave Kuda the confidence to relaunch remittances on a robust footing.
Why It Matters
Kuda first entered cross-border transfers in 2022 but outsourced the service, which squeezed margins and led to a pause. This time, Kuda runs the product entirely in-app and builds on its core banking infrastructure.
Nosakhare Oyegun, Senior VP of Business Banking, said Kuda detected diaspora users frequently sending money through multiple apps. He remarked, “I have gone through that myself. It’s not ideal from a user experience standpoint”.
Strategic Growth and Market Context
The global remittance sector into Nigeria hit $20.9 billion in 2024, climbing 8.9$% year-over-year. IMTOs saw inflows grow 43.5%, underpinning strong demand for streamlined services.
Kuda’s relaunch follows competition from players like LemFi, Nala, Moniepoint, Western Union and WorldRemit. Kuda holds a competitive edge with its user-friendly app no third-party switching, just an integrated wallet experience.
Product Details and User Benefits
The wallet currently accepts GBP and EUR, with USD and CAD expected in six months. It remains unavailable to Nigerian-resident users due to microfinance regulations restricting FX processing.
Kuda aims to simplify remittances: users abroad can now send funds directly to Nigerian accounts through one seamless app, a welcome relief over traditional options.
What’s Next for Kuda
Kuda plans to grow its footprint in diaspora markets. It raised $20 million in 2024 at a $500 million valuation. The fintech also explores AI integration into customer support and business tools, a move supported by its Q1 volume.
If Kuda sustains its momentum, analysts expect it will surpass its 2023 overdraft levels within Q2 and reach around ₦57.2 trillion ($37 billion) in total transaction volume by year-end.
Kuda’s remittance relaunch signals a shift towards vertical integration in African fintechs. By tackling cross-border payments in-house, Kuda enhances margins and user experience. With solid Q1 figures and an ambitious roadmap, the neobank stands ready to capitalize on Nigeria’s booming remittance market.
