- The Bank of Uganda has granted NALA an International Money Transfer Operator (IMTO) licence, allowing the fintech to expand its operations into the country.
- This development will enable the Tanzanian fintech to directly integrate with mobile money services, allowing users to pay easily into local mobile wallets. It will also improve the efficiency and security of cross-border payments for individuals and businesses.
- This comes nearly two months after it secured $40 million Series A funding to boost the company’s growth plans, primarily building Rafiki, its new B2B payment platform.
Nicolai Eddy, NALA’s Chief Operations Officer (COO), stated that the licensing provides an opportunity for the large number of Ugandans in the diaspora to use the fintech’s services, which are free of charge.
“If you need that money immediately, you will be able to receive it instantly and the same amount without any deduction through our payment plan product.
“For us, money remittances a volume game and we care about doing large volumes. On small transactions we will not make money but on individuals who send large amounts allow us make some money to keep the business alive,” he added.
Founded in 2017 by Benjamin Fernandes, NALA facilitates money transfers from the UK, US, and EU to various African countries, including Tanzania, Kenya, Egypt, Uganda, Ghana, Rwanda, Cameroon, Côte d’Ivoire, Senegal, Nigeria, and South Africa.
Eddy also noted that a significant portion of remittances goes toward basic needs such as education, medical care, and household expenses. While the remittance process has improved, he acknowledged that more work is needed to ensure it fully supports people’s lives.
He added that NALA has worked closely with the Bank of Uganda to meet all requirements for making remittances accessible. Eddy also mentioned that the license will help boost the supply of foreign exchange in Uganda, which is crucial for economic growth.
On August 28, 2024, Flutterwave also obtained a Payment Systems Operator (PSO) licence from the Bank of Uganda, enabling businesses in the country to use its payment solutions.
This development shows the fintechs’ interest in expanding the digital remittances market in Uganda, which is projected to reach $17.99 million in transaction value in 2024. The market is also expected to grow at an annual rate of 8.35% from 2024 to 2028, potentially reaching $24.79 million by 2028.
Don’t miss out on Africa’s financial revolution
Keep up with the rapid pace of innovation in Africa’s fintech landscape with Fintech Today. Designed for quick consumption, our exclusive newsletter, trusted by over 1,000 industry leaders, delivers the latest insights, trends, and breakthroughs right to your inbox.
