NALA, a Tanzanian money transfer fintech startup, said on Monday plans to invest 1.0 million US dollars (2.3bn/-) after getting a payment service provider (PSP) license from the central bank.
The license approval will enable the fintech startup to make a direct integration with banks and local mobile money operators such Vodacom, Airtel, Tigo and the like.
NALAs’ Founder and CEO, Benjamin Fernandes, said the fintech biggest goal is enabling direct integration to banks and telcos and tackling the challenges that businesses face in money transfer across borders at affordable rates.
“The PSP license is a major milestone to us and we are making a major commitment to investing 1.0 million US dollars to build our most ambitious projects ever in our home market—Tanzania,” Mr Fernandes said in a press conference.
NALA is an African payments company and money transfer app that enables users to make secure and reliable payments from Europe, the UK and US to Tanzania, Kenya, Rwanda, Uganda and Ghana in seconds.
Though, despite many options for sending money to Africa from abroad, the continent continues to be the most expensive place to send money to.
The World Bank estimates average transfer fees to Africa at 9.0 per cent of the principle while many existing options include hidden fees that make it hard to discern the true cost of sending money.
“The license was awarded as part of the ongoing initiatives and efforts of the government to empower young people and to generally foster an environment that makes it simple for businesses like NALA to invest in the nation,” he said.
In January, the fintech startup launched in the EU by adding 19 new Eurozone nations to its list of send markets.
Also, after expanding from the UK to the US earlier this year, NALA has grown rapidly via geographic expansion and product differentiation.
NALA EU expansion was the latest in several exciting updates still to come, including the launch of NALA for business and recent integrations with Apple and Google Pay.