Kuda Technologies, the parent company of Kuda Bank and backed by Target Global, has obtained new payment licenses in Tanzania and Canada, signaling its ambitious push to expand across Africa and the global market. These licenses will enable Kuda to provide remittance services and multi-currency wallet solutions, catering to Africans in Canada and Tanzania.
In Canada, the license will allow Kuda to offer services tailored to the growing Nigerian and African diaspora, providing tools for sending money and managing finances across currencies. Similarly, in Tanzania, the Payment Service Provider (PSSP) license will enable similar offerings for local customers, strengthening Kuda’s footprint on the African continent.
This expansion puts Kuda in direct competition with other global neobank startups like LemFi and Nala, which also target Africans in the diaspora. While Kuda previously entered the remittance market with a UK payment license in 2022 and launched a subscription-based transfer service, that product has since been discontinued, likely due to limited market readiness. This suggests the bank may take a different approach as it rolls out services in these new markets.
The remittance market holds significant potential for growth, with increasing numbers of Nigerians and Africans migrating abroad. In 2022, Nigeria ranked as Canada’s fourth-largest source of immigrants, with over 22,000 Nigerians becoming permanent residents. Currently, more than 100,000 Canadians of Nigerian descent live in the country. Overall, remittance inflows into Africa reached $100.1 billion in 2022, contributing 3.4% to the continent’s GDP.
Kuda’s strategic focus on markets with a strong Nigerian diaspora, such as Canada and the UK, positions the company to capitalize on foreign exchange revenue opportunities. This comes at a critical time when volatile FX rates are significantly impacting the profits of startups. By aligning with the needs of the diaspora, Kuda aims to strengthen its global presence while driving revenue growth.
