When Visa invested in Nigerian fintech Moniepoint earlier this 12 months, it didn’t simply validate the newly minted unicorn — it signaled a daring new path.
As a part of that deal, the Nigerian fintech greatest recognized for constructing one among Africa’s largest enterprise banking platforms, hinted at plans to combine with Visa Direct, a transfer that may unlock worldwide fee rails for remittances and cross-border companies.
That technique is now taking form with the launch of MonieWorld, beginning with the UK–Nigeria hall, its first foray into diaspora-focused monetary companies. However this isn’t simply one other play for remittance quantity, insists founder and CEO Tosin Eniolorunda. “We’re not making an attempt to be a remittance app,” he instructed TechCrunch. “We’re constructing a correct immigrant banking platform.”
It’s an bold transfer. The remittance area, particularly the UK–Nigeria hall, is likely one of the most crowded fintech verticals in Africa. From LemFi, Ship and NALA to Zepz and Taptap Ship, migrants don’t have any scarcity of choices. With glossy consumer experiences, low charges, and years of name fairness, these incumbents have outlined the area.
For many new immigrants, selecting a remittance app is likely one of the earliest monetary choices they make — usually by phrase of mouth. Which means MonieWorld shouldn’t be solely getting into late however must cope with unseating incumbents already entrenched in day by day habits.
And whereas Moniepoint’s entry brings scale and credibility, some observers query whether or not the market wants one other remittance platform.
Eniolorunda says MonieWorld desires to assist new immigrants keep related to household and obligations again dwelling whereas settling overseas. Whereas there’s little to no differentiation in product or pricing relating to the previous (remittances), one fast take a look at MonieWorld’s web site will present positioning round offering higher pricing than different platforms.
However that in itself isn’t a moat and is commonly a race to the underside. Even Eniolorunda agrees: “We’re not making an attempt to say we’re right here to be the most cost effective,” stated the CEO. “However as a result of we have already got an current expertise, processing rails, and have achieved economies of scale in lots of locations, it’s signifies that we are able to afford to be cheaper for our prospects.”
Moniepoint has spent years constructing infrastructure in Nigeria, from funds and playing cards to credit score and compliance for companies and, extra lately, retail customers. Its argument is that this identical stack, repurposed for immigrants, can ship extra worth than standalone remittance apps.
“We’ve supplied easy-to-use, reasonably priced merchandise in Nigeria, the place we now supply fee, credit score software program, and debit and bank card companies for our companies and customers,” Eniolorunda remarks. “We figured that to finish the cycle, we are able to additionally supply this identical set of companies to our market however within the diaspora.”
Discovering its place in a crowded market
Remittances are the entry level. Nevertheless, the long-term objective, he says, is to supply a broader suite of economic instruments like constructing credit score. It’s a vertical that has taken off within the U.S. over the previous couple of years, the place digital platforms like Zolve assist immigrants entry monetary companies, beginning with credit score because the wedge, not remittances (Pillar is an identical firm within the U.Okay.).
“While you settle into a brand new nation, it’s worthwhile to construct a credit score historical past. Persons are making an attempt to determine and discover their footing in new international locations, and if they will discover a platform that sort of understands their state of affairs and helps construct credit score, it’s going to be nice for them,” stated the chief government whereas remaining tight-lipped on different options that MonieWorld may supply.
Remittance outflows from the UK topped £9.3 billion in 2023. Nigerians overseas despatched dwelling over $20 billion, in accordance with the World Financial institution. It’s a hall the place many gamers can presumably exist and have appreciable market share. Nevertheless, with these gamers competing on pricing or pace — each now commoditized — Eniolorunda believes only some shall be winners by offering a superior expertise.
As Moniepoint deepens its native footprint in African international locations like Kenya, it plans to launch MonieWorld corridors for these diasporas within the UK, US, or Canada, as is the following logical step. This mannequin will enable the decade-old fintech to derisk its Nigeria-heavy operations by spreading out its publicity — a pitch Eniolorunda says resonated with buyers throughout its final increase.
Nonetheless, the problem is actual: Moniepoint is stepping right into a fiercely aggressive area, and it stays unclear how a lot margin is left to seize. Whereas Eniolorunda sees inevitable consolidation forward, the worthwhile fintech is betting that its infrastructure, compliance know-how, and deep cultural understanding will give it sufficient carry to matter.
“After we began Moniepoint and thought of company banking, it felt like we have been getting into late. However the market grew, and look the place we at the moment are,” Eniolorunda stated, reflecting on Moniepoint’s late entry into company banking in 2019. “The identical may occur with remittances. Sure, there are various gamers, however there’s nonetheless loads of room to both purchase extra prospects or supply extra companies.”
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