Kuda Technologies, a Nigerian full-service digital Microfinance bank, is re-entering the cross-border remittance market with a new multi-currency wallet, allowing diaspora users to send money directly to Nigerian bank accounts.
Unlike its previous attempt three years ago, which was abandoned due to low margins from third-party reliance, this wallet operates entirely within Kuda’s ecosystem, offering greater control and fewer intermediaries. It currently supports British pounds and euros, with U.S. and Canadian dollar support planned within six months. “We didn’t get it right the first time, but now we’ve figured it out,” said Nosakhare Oyegun, Kuda’s Senior Vice President for Business Banking.
Recall that Kuda made a strategic move into the remittance market in 2022. This expansion aligned with a growing trend among fintechs to tap into the lucrative diaspora remittance flows into Africa—particularly Nigeria, which remains one of the top remittance destinations on the continent.
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However, despite the initial promise, Kuda quietly abandoned the venture shortly after launch. The key reason? Low profit margins are largely due to its dependence on third-party infrastructure for processing cross-border transactions. Without owning the underlying payment rails or having a strong international network, Kuda had to rely on intermediaries—cutting significantly into its earnings per transaction.
Following the relaunch of its remittance service, it has come with significant improvements, driven by homegrown infrastructure, stronger margins, and a more convenient, all-in-one service targeting Africans abroad.
These includes;
- Fully in-house build: Integrated directly into its core banking system.
- Multi-currency wallets: Supports GBP and EUR, with USD and CAD expected within six months.
- Better user experience: Streamlined process no need for multiple apps/services.
- Focus on diaspora: The feature targets Nigerians abroad who continue using Kuda’s app for remittances or transactions during visits, addressing the inconvenience of high fees and app-switching.
Kuda’s exit from the remittance market was a reminder that even great ideas need the right foundation. With lessons learned and new licenses in hand, the fintech seems poised for a smarter second act, one that may yet reshape how Africans send, save, and spend money across borders.
Kuda’s re-entry into the remittance market will see it face competition from well-established players like, LemFi, Moniepoint, Chippercash, Western Union, and emerging challengers, targeting the African diaspora remittance corridor, especially for transfers into Nigeria. The neobank aims to stand out with a seamless, single-app experience. It aims to use its convenience as a competitive edge.
The relaunch into the remittance market comes after Kuda revealed that it processed over 300 million transactions worth N14.3 trillion in the first quarter (Q1) of 2025, spanning both its retail and business banking operations.
This disclosure was made by CEO Babs Ogundeyi during a media briefing held in Lagos on Monday, July 7, 2025. Breaking down the numbers, Babs noted that N8.5 trillion came from retail banking, while N5.8 trillion was generated from business users.
Launched in 2019, Kuda was hailed as Nigeria’s first fully digital bank, aiming to simplify personal finance for millions of Africans. Built by Babs Ogundeyi and Musty Mustapha, the fintech quickly gained traction with a mobile-first, no-fee banking model that appealed especially to the youth. Within just a few years, it had onboarded millions of customers, raised tens of millions in funding, and emerged as one of Africa’s most recognized fintech brands.
By late 2022, Kuda had surpassed 4.9 million customers and grown its revenue by over 190% year-on-year. While it still operated at a loss—posting a $32 million net loss in 2022, the company saw this as part of a long-term growth investment.
In 2024, it secured new remittance licenses in Canada and Tanzania, with plans to re-enter the market using a more integrated and profitable model. This time, it is focusing on building more control over its remittance channels, exploring wallet-based systems and regional partnerships to cut out costly intermediaries.
Kuda has emerged rapidly as a trailblazing African neobank, delivering value through innovation and user-centric services. As the fintech race in Africa heats up, Kuda remains one of the most-watched players on the continent.