Africans in Canada to save millions in remittance fees with tailor-made financial services
June 18 2024, Toronto: Kuda, the money app for Africans, will launch a digital wallet in Canada in Q3, as it continues its global expansion, following a launch in the UK in 2022. The digital wallet will enable thousands of Africans in Canada to combat high remittance fees, which currently average 6.2%, according to the World Bank — more than double the UN Sustainable Development Goal target of 3%. Kuda’s mission is to give all Africans globally access to friction-free and affordable financial services, connecting the diaspora with Africa.
With over 1.3 million Africans living in Canada, Kuda is set to save the African diaspora millions of dollars in remittance fees with its competitive market rates. Parent company Kuda Technologies Limited was founded in 2019 by two Nigerians: Babs Ogundeyi and Musty Mustapha. Its Nigerian business rapidly expanded to become one of the country’s leading neobanks, with over seven million customers.
Remittance accounts for nearly 8% of Africa’s total GDP, yet the system has long been plagued by unreliable payments and high fees. Kuda’s digital-only approach and unique local market knowledge have allowed it to launch a service that benefits both senders and recipients. Operating through a network of local partners, Kuda’s Canadian entity will offer a digital wallet that allows users to add money in multiple currencies (GBP, EUR, USD, CAD) and send money to African countries seamlessly.
Group CEO and co-founder of Kuda, Babs Ogundeyi said: “Our expansion into Canada will be a significant step towards our vision of providing all Africans with access to frictionless and affordable financial services. We understand the challenges faced by the African diaspora, especially when it comes to sending money home. Our digital wallet will also be available to non-residents offering new migrants or short-term visitors in Canada a reliable and cost-effective solution to support their families and communities back home with ease.”
The digital wallet will be available via the Kuda app on iOS, Android, and the web in Q3, providing a seamless user experience across platforms.
