When Visa invested in Nigerian fintech Moniepoint earlier this yr, 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 certainly one of Africa’s largest enterprise banking platforms, hinted at plans to combine with Visa Direct, a transfer that might unlock worldwide fee rails for remittances and cross-border providers.
That technique is now taking form with the launch of MonieWorld, beginning with the UK–Nigeria hall, its first foray into diaspora-focused monetary providers. 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 advised TechCrunch. “We’re constructing a correct immigrant banking platform.”
It’s an formidable 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 haven’t any scarcity of choices. With glossy person 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 selections they make — typically by way of phrase of mouth. Meaning MonieWorld shouldn’t be solely getting into late however should cope with unseating incumbents already entrenched in every 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 needs 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 have 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,” mentioned the CEO. “However as a result of we have already got an current know-how, processing rails, and have achieved economies of scale in lots of locations, it’s a implies that we are able to afford to be cheaper for our clients.”
Moniepoint has spent years constructing infrastructure in Nigeria, from funds and playing cards to credit score and compliance for companies and, extra just lately, retail customers. Its argument is that this similar stack, repurposed for immigrants, can ship extra worth than standalone remittance apps.
“We’ve offered easy-to-use, inexpensive merchandise in Nigeria, the place we now provide fee, credit score software program, and debit and bank card providers for our companies and customers,” Eniolorunda remarks. “We figured that to finish the cycle, we are able to additionally provide this similar set of providers to our market however within the diaspora.”
Discovering its place in a crowded market
Remittances are the entry level. Nonetheless, the long-term purpose, 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 providers, beginning with credit score because the wedge, not remittances (Pillar is the same firm within the U.Okay.).
“Once you settle into a brand new nation, it is advisable construct a credit score historical past. Persons are making an attempt to determine and discover their footing in new nations, and if they will discover a platform that sort of understands their situation and helps construct credit score, it’s going to be nice for them,” mentioned the chief government whereas remaining tight-lipped on different options that MonieWorld might provide.
Remittance outflows from the UK topped £9.3 billion in 2023. Nigerians overseas despatched dwelling over $20 billion, based on the World Financial institution. It’s a hall the place many gamers can presumably exist and have appreciable market share. Nonetheless, with these gamers competing on pricing or velocity — each now commoditized — Eniolorunda believes just a few might be winners by offering a superior expertise.
As Moniepoint deepens its native footprint in African nations 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 permit the decade-old fintech to derisk its Nigeria-heavy operations by spreading out its publicity — a pitch Eniolorunda says resonated with traders 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 elevate to matter.
“Once we began Moniepoint and regarded company banking, it felt like we had been getting into late. However the market grew, and look the place we at the moment are,” Eniolorunda mentioned, reflecting on Moniepoint’s late entry into company banking in 2019. “The identical might occur with remittances. Sure, there are lots of gamers, however there’s nonetheless loads of room to both purchase extra clients or provide extra providers.”
