OAPay, a fintech licensed in the UK and several states in the United States, has expanded operations to Kenya, Ghana, Nigeria, Uganda, and Tanzania.
- •OAPay is set to join the fray of digital remittance companies moving into the continent to facilitate cross-border payments and simplify international monetary transactions.
- •Kenya’s diaspora remittances last year rose to an all-time high of KSh 640.8 billion, up from KSh 542.4 billion in 2023.
- •The volume of transactions involved between Africans in the diaspora and those living in the continent have attracted scores of fintechs hoping to act as intermediaries between traditional banks and mobile money solutions.
“Our mission is to provide the best money transfer services, as we help our valued members support their loved ones back home and achieve economic success in our designated countries of operation,” Tracey Abiola, OAPay’s Founder and Chief Executive Officer said.
Remittance startups founded by Africans have sought to out-compete traditional western-based companies like MoneyGram and Western Union. By leveraging digital infrastructure, these fintechs are striving towards removing the barriers to international transactions that cause delays and higher costs.
As many Africans migrate abroad, sending money back home has garnered interest not only within the financial sector but also governments are keen on beefing up their forex inflows. Remittances account for 5% of GDPs in over 15 African countries but policy makers are concerned about costs. Innovation in the fintech sector brews competition, allowing different platforms to iterate transactional experiences and discover ways to reduce costs.
