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 finest identified for constructing one in every of Africa’s largest enterprise banking platforms, hinted at plans to combine with Visa Direct, a transfer that may unlock worldwide cost rails for remittances and cross-border providers.
That technique is now taking form with the launch of MonieWorld, beginning with the U.Okay.-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 attempting to be a remittance app,” he instructed TechCrunch. “We’re constructing a correct immigrant banking platform.”
It’s an formidable transfer. The remittance area, particularly within the U.Okay.-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 smooth 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 selections they make — typically by phrase of mouth. Which means MonieWorld just isn’t solely coming into late however may even should take care of 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 needs to assist new immigrants keep linked to household and obligations again residence whereas settling overseas. Whereas there’s little to no differentiation in product or pricing concerning the previous (remittances), one fast take a look at MonieWorld’s website 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 attempting to say we’re right here to be the most affordable,” 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 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 just lately, retail shoppers. Its argument is that this similar stack, repurposed for immigrants, can ship extra worth than stand-alone remittance apps.
“We’ve supplied easy-to-use, reasonably priced merchandise in Nigeria, the place we now provide cost, credit score software program, and debit and bank card providers for our companies and shoppers,” Eniolorunda says. “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. Nevertheless, the long-term objective, Eniolorunda 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 an identical firm within the U.Okay.).
“Once you settle into a brand new nation, you must construct a credit score historical past. Persons are attempting 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 govt whereas remaining tight-lipped on different options that MonieWorld might provide.
Remittance outflows from the U.Okay. topped £9.3 billion in 2023. Nigerians overseas despatched residence 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 velocity — each now commoditized — Eniolorunda believes only some might 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 U.Okay., U.S., or Canada, as is the following logical step. This mannequin will permit the decade-old fintech to de-risk its Nigeria-heavy operations by spreading out its publicity — a pitch Eniolorunda says resonated with buyers throughout its final elevate.
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 raise to matter.
“After we began Moniepoint and thought of company banking, it felt like we had been coming 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 might occur with remittances. Sure, there are a lot of gamers, however there’s nonetheless loads of room to both purchase extra prospects or provide extra providers.”
