FinTech Cellulant and NALA have launched a cooperation with the goal of making cross-border payments more frictionless and lowering transaction fees for money sent from the United Kingdom and the United States to Africa.
Remittances are the second-largest source of foreign resources for Sub-Saharan Africa, after Official Direct Assistance (ODA). According to Cellulant research, $48 billion was transferred to Africa in 2019, with Nigeria getting about half of the sum, followed by Ghana and Kenya.
The report also identified obstacles to intra-African trade as well as trade between Africa and the rest of the globe, citing high transaction costs as a barrier to successful cross-border payment facilitation. Tanzania and Kenya have the highest transaction fees, at 17 percent and 21 percent for every $200 sent, respectively.
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Ting is a single API payments platform from Cellulant that allows global, regional, and local businesses to accept payments online and offline using mobile money, local and international cards, or directly from their bank. The platform enables interoperability across Africa by powering payments for 220 million people on a single inclusive network.
NALA, a Y-Combinator-backed startup, offers an app that allows Africans residing in the UK and the US to send money to the continent quickly and easily. The application is presently available in Tanzania, Uganda, Kenya, Rwanda, and Ghana, with plans to extend to Nigeria and Ethiopia.
Statement From NALA
Nicolai Eddy, NALA Chief Operating Officer, stated, “Today, Sub-Saharan Africa is the most expensive region to move money into.” “There is a big opportunity to use technology to lower payment fees and establish next-generation payment and banking products in Tanzania and across the African continent.” NALA has created a fully digital platform enabling individuals and businesses in the United Kingdom and the United States to send money to friends, relatives, and employees in Africa. Cellulant was one of the continue first payment pioneers, and we chose to collaborate with them because of their significant expertise in the field and outstanding technical skills.”
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“Cellulant eliminates a significant barrier for enterprises entering Africa, as they must deal with 54-55 distinct payment providers and several currencies, with at least one for each country.” We can meet all of these objectives with a single platform, single API, single contract, one web tool, and a single point of management for all operations thanks to our presence in 35 countries. “This agreement combines Nala entirely digital cross-border payment capabilities with the required infrastructure to enable them to effectively deliver their services across the continent,” stated Cellulant Chief Revenue Officer David Waithaka.