- Cellulant, which is a payments company with operations across Africa, has announced a new partnership with NALA, which is a Tanzania-based fintech company.
- It is believed that this will reduce the cost of sending money between the region and countries like the UK and the US.
- “Cellulant is one of the earliest payment pioneers on the continent, and we chose to partner with them because of their deep expertise in the space and strong technical capabilities,” a senior NALA official said.
Cellulant, a fintech company based in Tanzania, has announced that it will be working with NALA, a payments company with operations across sub-Saharan Africa.
The companies will work together as part of a new surge in remittances from the UK and US to countries including Ghana, Rwanda, Kenya, Uganda and Tanzania.
It is part of a context of significant remittance activity in the region.
It is understood that apart from official direct aid, remittances are the main source of income from abroad for the region.
In total, it is estimated that nearly US$50 billion was sent to Africa in 2019.
The new move between the two companies should reduce problems associated with payments like this.
It is believed that this will reduce the cost of sending money between the region and countries like the UK and the US.
Cellulant’s offering includes an application programming interface, which allows payments to be collected both via the web and elsewhere.
In a statement, Nicolai Eddy, chief operating officer of NALA, said this region was the most expensive when it comes to inward money transfers.
“Today, sub-Saharan Africa is the most expensive region to transfer money to,” he said.
He added that the African continent could benefit from technology that would reduce payment fees.
“In Tanzania and across the African continent, there is a huge opportunity to harness technology to reduce payment fees and create next-generation payment and banking products,” he explained.
He went on to say that NALA was working on this and enabling people and businesses from Britain and North America to transfer money to Africa.
“At NALA, we have built an all-digital platform for UK and US-based individuals and businesses to send money to friends, family and employees in Africa,” said he declared.
He concluded by describing Cellulant as one of the “prepayment pioneers”.
“Cellulant is one of the earliest payment pioneers on the continent, and we chose to partner with them because of their deep domain expertise and strong technical capabilities,” he explained.
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